4. The competent authorities of the States Parties may communicate directly with each other with a view to reaching an agreement within the meaning of the preceding paragraphs. If, in order to reach an agreement, it appears appropriate to have an oral exchange of views, such exchange may take place through a Commission composed of representatives of the competent authorities of the Contracting States. NRIs can avoid paying double taxation under the double taxation treaty. This Agreement shall not affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or the provisions of special conventions. By entering into double taxation treaties, by paying taxes in the country of residence, a person can be exempted from paying tax in the country where he is located. In some cases, a country where the profit is made may deduct the withholding tax (also known as the withholding tax), and the taxpayer would receive the foreign tax credit in the country of residence to reflect that the tax has already been paid. The methodology for avoiding double taxation varies from country to country. Therefore, it is preferable to refer to the double taxation convention between the countries concerned in order to know the exact procedures. The double taxation treaty is a convention signed by two countries. The agreement is signed to make a country an attractive destination and to allow NRIs to exempt themselves from multiple tax payments.

DTAA does not mean that the NRI can completely avoid taxes, but it does mean that the NRI can avoid higher taxes in both countries. DTAA allows an NRI to reduce its tax impact on income earned in India. DTAA also reduces cases of tax evasion. India has concluded eight limited double taxation relief agreements with the following countries with respect to the income of airlines and commercial shipping companies: (1) The competent authorities of the Contracting States shall exchange information (including documents or certified copies of documents) necessary for the implementation of the provisions of this Agreement or national legislation on taxes of any kind and description States Parties are required to do so; or their political subdivisions or local authorities, provided that taxation under such subdivisions does not infringe the Convention. The exchange of information shall not be restricted by Articles 1 and 2. In the exercise of the powers conferred by section 30 of the Inheritance Tax Act 1953 (XXXIV of 1953), the Central Government shall fix 30 June 1956 as the date on which the Agreement of 3 April 1956 between the Government of India and the Government of the United Kingdom of Great Britain and Northern Ireland for the avoidance of double taxation and the prevention of fiscal evasion with respect to customs duties on the Community. The estates of deceased persons under this Agreement shall enter into force. (2) Taxation of a permanent establishment owned by an enterprise of a Contracting State in the other Contracting State may not be levied less favourably in that other State than taxation levied on companies of that other State carrying on the same activities. This provision shall not be interpreted as requiring a Contracting State to grant to residents of the other Contracting State tax allowances, reliefs and reductions in respect of civil status or family obligations which it grants to its own residents. This provision should not be interpreted as precluding a Contracting State from setting off the profits of a permanent establishment which a company of the other Contracting State has in the first-mentioned State at a rate of tax higher than that levied on the profits of a similar company of the first-mentioned Contracting State; remain contrary to Article 7(3).

(e) If he or she is a national of both or both States, the competent authorities of the States Parties shall settle the matter by mutual agreement. 3. The term "dividends" used in this Article means income from shares or other rights that are not claims participating in profits, as well as income from other company rights which, under the law of the State in which the distribution company is resident, is subject to the same tax treatment as income from shares. Desiring to conclude an agreement for the avoidance of double taxation and the prevention of fiscal evasion in the field of taxes on income, and with a view to promoting economic cooperation between the two countries, the following agreement was concluded: which is treated as a taxable entity under the tax laws in force in the respective Contracting States; NRIs and foreigners can restore in India and also in another foreign country to which they belong. Such persons may find that under national law they are required to pay local taxes on any profit made in a country and to pay taxes again in the foreign country where the profit was made. As this creates an unfair system and stifles business investment, many countries have implemented double taxation treaties with each other. 1. Without prejudice to the remedies provided for in the domestic law of those States, if a person considers that the acts of one or both contracting States give rise to taxation not in conformity with this Convention, he may, without prejudice to the remedies provided for by the national law of those States, submit to the competent authority of the Contracting State in which he resides: or, if his case falls within the scope of Article 24( 1), the case of the Contracting State of which he is a national. The case must be submitted within three years of the first notification of the action leading to taxation not in accordance with the provisions of the Convention. 4. Enterprises of a Contracting State the capital of which is wholly or partly owned, directly or indirectly, or under the direct or indirect control of one or more residents of the other Contracting State, may not be subject in the first-mentioned State to taxes or related requirements other than taxation and related requirements to which other similar enterprises of the Contracting State may not be subject in the first-mentioned State to taxes or related requirements other than taxation and related requirements to which other similar enterprises of the Contracting State of the first-mentioned State are or may be subject to them.

2. The competent authority shall endeavour to resolve the matter by mutual agreement with the competent authority of the other State Party if it considers that the objection is justified and if it is not in a position to find a satisfactory solution itself in order to be able to guide what is not in conformity with this Agreement. Any agreement reached shall be implemented without taking into account a time limit set by the domestic law of the States Parties. 3. Where, pursuant to paragraph 1, a person other than a natural person resides in both Contracting States, he shall be deemed to reside only in the State in which he has his place of effective management. If it is not possible to determine the State in which the place of effective management is situated, the competent authorities of the Contracting States shall settle the matter by mutual agreement. India has concluded CTA agreements similar to the CTAA agreement between India and Mauritius with Singapore and Cyprus. Therefore, many Indian companies and foreign investors invest in India through these foreign companies overseas.

1. Nationals of a Contracting State may not be subject in the other Contracting State to any other tax or related obligation which is different or more onerous than the tax and to the related requirements to which nationals of that other State are or may be subject in the same circumstances, in particular with regard to residence. Without prejudice to Article 1, this provision shall also apply to persons who are not resident in one or both Contracting States. The Government of India and the Government of the United Kingdom of Great Britain and Northern Ireland, which intend to conclude an agreement for the avoidance of double taxation and the prevention of tax evasion on the property of deceased persons, have agreed as follows: Double taxation is the collection of taxes by two countries on the same income of an appraiser. Double taxation is usually a problem for NRIs and foreigners doing business in India. Therefore, the double taxation obligation of a country appraiser is mitigated by tax treaties between countries. India has double taxation treaties (DBAAs) with 84 countries. In this article, we will look in detail at double taxation agreements and double taxation treaties. 4.

The Agreement shall also apply to all identical or substantially similar taxes levied by one of the two Contracting States after the date of signature of the Agreement, in addition to or in place of existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial change in their respective tax laws. NRIs can avoid paying double taxes under the Double Tax Avoidance Agreement (DTA). Usually, non-resident Indians (NRIs) live abroad but earn income in India. In such cases, it is possible that income earned in India will be taxed both in India and in the country of residence of the NRI. .