Tax Treaty – Overview

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....ouble Tax Avoidance Agreement comes into play to mitigate hardship caused by subjecting the same income to double taxation. Directive Principle set out by Article 51 of Indian Constitution to be followed by the state in the context of International Agreements. The State shall endeavor to - * Promote International peace and security; * Maintain just and honourable relations amongst nations; ....

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....: Neutrality factor provides that economic processes should not be affected by external factors such as taxation. Neutrality is two-fold. * Capital export neutrality and * Capital import neutrality (CIN). Capital export neutrality (CEN) provides that business decision must not be affected by tax factors between the country of residence and the target country; whereas CIN provides that the le....