The expansion of globalisation and accelerated growth of digitalisation has contributed to blurring borders and reshaping the way businesses are structured and managed. With increased cross border transactions, there is also greater exposure to taxes in multiple jurisdictions, posing challenges of its own. The challenges in taxation are further compounded with cross border movement of individuals, resulting in changes in the residential changes from time to time. Taxation in multiple jurisdictions does come with the risk of double taxation, which is addressed in bilateral tax treaties by either allocating taxing rights between residence and source jurisdictions or by enabling tax credit in the state of residence for taxes paid in other states.
Historically, claim of relief from double taxation has been by way of seeking reliefs in accordance and to the extent permitted under the respective domestic laws of the residence country. In claiming FTC, there often arises disputes on substantial issues relating to timing and quantum of credit, non-adherence to the prescribed compliances. It assumes crucial significance, therefore, to understand the FTC provisions of tax treaties and its interplay with the domestic tax law.
The webinar will focus on answering the following questions surrounding FTC:
- FTC as enshrined in various tax treaties
- FTC under the IT Act for treaty and non-treaty jurisdictions
- Eligibility criteria and compliance requirements for claiming FTC
- Case studies discussing claim of FTC in particular circumstances
Speakers
- Bharathi K Prasad, Director, LKS
- Venkat Ramanan, Associate, Director, LKS