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International Taxation – Relief from Double Taxation

Meaning of Double Taxation and why it arises?

Double taxation generally means taxation of same income of a person in more than one country. The main reason behind double taxation is that countries across the world different rules for taxing income. Basically, there are two main rules of income taxation:

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International Taxation: Source Rule of Taxation under section 9.

International Taxation: Source Rule of Taxation under section 9.

Dear CA / CMA Students,

Let us start with few practical scenarios

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International Taxation: Taxation of Non-residents’ Shipping Business-Section 44B of the Act

Dear CA Final/CMA Final Students,

Let us start with a small practical scenario.

A non-resident foreign shipping Company reports income under section 44B of the Act. It would like to claim unabsorbed depreciation and brought forward business loss against such income. Whether such claims are permissible?

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Direct Tax CA Final (old syllabus) Nov 2o2o Exam – A Meaningful Insight & Suggested answers

Dear CA Final Students,

Exams of the CA Final are over and the discussion is on high pitch amongst the students that how was the descriptive part of Direct Tax (old syllabus) question paper – easy, tough or moderate? Letus find out following the standard approach called “Dissection”.

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Concept of Deemed Speculation under Income Tax Act, 1961

Dear Students/Readers,

Let us start with a small practical scenario

Surana&Surana Pvt. Ltd. has incurred huge loss on trading in shares of other companies. The entire trading activity was delivery based.  It seeks your opinion about the nature of such loss (whether speculative or non-speculative) under following alternatives-

  • Trading in shares is not the principle business of a company.
  • Trading in shares is the principle business of a company
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TCS on Sale of Goods [30 FAQs]

FAQ 1: Who is required to collect tax at source under section 206C(1H) and what rate?
With effect from 1st October, 2020, a seller of goods is liable to collect TCS at the rate of 0.1 percent of the sale consideration received from a buyer in a previous year in excess of fifty lakh rupees.
“Seller” means a person whose total sales, gross receipts or turnover from the business carried on by him exceed ten crore rupees during the financial year immediately preceding the financial year.
Illustration

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Concept of “Deemed owner”

Concept of “Deemed owner” under the Income Tax Act,1961

Dear Students/Readers,

Let us start with a small practical scenario.

Mr. Jayesh owns a hose property. It is given on lease for a period of 15 years to Mr. Kulkarni, lease rent being Rs.3,00,000 per annum. Mr. Kulkarni had sub-leased the same to Mr. Bimal for Rs. 5,00,000 per annum. It was agreed that municipal taxes of Rs. 30,000 per annum are to be borne by Mr. Kulkarni. Based on the above information, answer following issues:

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Concept of Inseparable Letting under IT Act, 1961

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Let us start with a small practical scenario

Mr. Paresh owns a community hall. This hall is being rented out for Rs. 5,000 per hour towards use of hall and Rs. 2,000 per hour towards use of furniture and fixtures, electricity charges and other misc. charges. He used to issue separate receipts for both the charges. Under which head, the above income would be taxable in the hands of Mr. Paresh?

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