Cross-border payments, international holding structures, and inter-company transactions are subject to rigorous statutory scrutiny under the Income-tax Act, 2025 alongside continuing transitional provisions of the Income-tax Act, 1961. Our international tax and transfer pricing practice assists domestic companies, multinationals, Non-Resident Indians (NRIs), and expatriates in interpreting Double Taxation Avoidance Agreements (DTAA), determining non-resident withholding obligations under statutory provisions (formerly Section 195 of the Income-tax Act, 1961), obtaining Form 15CB certifications, and compiling transfer pricing documentation in accordance with Indian tax statutes and OECD BEPS principles.
Double Taxation Avoidance Agreements (DTAA) & Treaty Relief
Non-resident income generated from sources in India is taxable under the scope of total income provisions of the Income-tax Act, 2025 (formerly Sections 5 and 9 of the Income-tax Act, 1961), subject to beneficial provisions under applicable Double Taxation Avoidance Agreements (formerly Sections 90 and 90A of the Income-tax Act, 1961). Claiming treaty benefits—such as reduced withholding rates on royalties, Fees for Technical Services (FTS), dividends, and capital gains—requires strict statutory documentation.
- ✓Verification of Tax Residency Certificate (TRC) issued by the tax administration of the recipient's home country
- ✓Mandatory electronic filing of Form 10F on the Income Tax e-filing portal with digital signatures
- ✓No-Permanent Establishment (No-PE) certificate and beneficial ownership declarations
- ✓Principal Purpose Test (PPT) and Limitation of Benefits (LOB) clause analysis under the Multilateral Instrument (MLI)
Non-Resident Withholding (formerly Section 195)
Overseas PaymentsStatutory determination of taxability, applicable DTAA treaty rates, surcharge, and health & education cess on cross-border transactions.
Form 15CA & 15CB Certification
Remittance AssuranceChartered Accountant examination of invoices, contracts, and tax residency proofs, and issuance of statutory Form 15CB along with Form 15CA e-filing prior to bank remittance.
Transfer Pricing Documentation & Form 3CEB Certification
Under the transfer pricing provisions of the Income-tax Act, 2025 (formerly Sections 92 to 92F of the Income-tax Act, 1961), any international transaction or Specified Domestic Transaction (SDT) between Associated Enterprises (AEs) must be computed having regard to the Arm's Length Price (ALP). Entities engaged in cross-border trade, software exports, management services, IP licensing, and intra-group financing must maintain three-tiered documentation (Local File, Master File, and CbCR) and file a statutory accountant's report in Form 3CEB.
- ✓Selection of the most appropriate method: Comparable Uncontrolled Price (CUP), Transactional Net Margin Method (TNMM), Cost Plus Method, or Resale Price Method
- ✓Economic benchmarking using authorized databases (Prowess, Capitaline) and comparative profitability margins
- ✓Preparation of Transfer Pricing study reports and contemporaneous audit documentation under statutory rules (formerly Rule 10D)
- ✓Statutory certification and electronic submission of Form 3CEB signed by a practicing Chartered Accountant by October 31st
NRI Taxation, FEMA Compliance & Foreign Assets Disclosure
Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) managing investments, real estate disposals, inherited assets, or repatriating funds face dual-layer compliance under direct tax law and the Foreign Exchange Management Act (FEMA). In addition, resident individuals possessing offshore shares, bank accounts, or ESOPs must ensure accurate reporting in Schedule FA (Foreign Assets) of their ITR to remain fully compliant with the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
Lower TDS Certificates (formerly Section 197)
NRI Real EstateFiling applications for Lower / Nil TDS deduction certificates (formerly Section 197 of the Income-tax Act, 1961) for sale of immovable properties by non-residents.
Schedule FA Disclosures
Resident Global AssetsReporting of offshore bank accounts, foreign direct equity, mutual funds, and trust beneficiaries in compliance with statutory transparency requirements.
