Tax Treaty – Overview - International Taxation - Income Tax

..... Tax Treaty Overview Role of Tax Treaties The Treaty represents various compromises agreed upon by the respective contracting states depending upon the economic expediency of a particular country. Tax Treaties attempt to eliminate double taxation and try to achieve balance and equity. Double 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 t .....

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Tax Treaty Overview - International Taxation - Income Tax

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..... mic 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 level of tax imposed on non-residents as well as the residents must be similar. Promotion of mutual economic relation, trade and investment: In s .....

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Tax Treaty Overview - International Taxation - Income Tax

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