DTAA-UK

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Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2010 The DTAA gives taxability reliefs under various instances of income. But I wanted a little elaborationon the same.

Say I have Interest income & professional service fees eraned in the UK. For the Fiscal year I am resident in India. What shall be the taxability impact of these income in the two countries.

CA Shiv

CA Shiv (Expert)
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26 April 2010 for that year, the income earned in UK will be chargeable to tax in UK. Also the same amount will be added towards the total income in India and have to calculate the tax on total income and than have to get the tax credit for the tax paid in uk on the basis of terms of DTAA with UK.( if it is there)

Querist : Anonymous

Querist : Anonymous (Querist)

26 April 2010 DTAA quotes the following :

Independent personal services - 1. Income derived by an individual, whether in his own capacity or as a member of a partnership, who is a resident of a Contracting State in respect of professional services or other independent activities of a similar character may be taxed in that State. Such income may also be taxed in the other Contracting State if such services are performed in that other State and if :
(a) he is present in that other State for a period or periods aggregating to 90 days in the relevant fiscal year ; or
(b) he, or the partnership, has a fixed base regularly available to him, or it, in that other State for the purpose of performing his activities ;
but in each case only so much of the income as is attributable to those services.

So can you pls elaborate on this with a small eg.

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