Withholding Tax Masterclass

Several corporate houses in India (MNCs as well as Indian Groups) make large payments to foreign entities. Determining TDS (also known as withholding tax or WHT) implications on these payments is critical, before making remittance outside India. The Income tax department has put a lot of energy in streamlining and ensuring compliance of withholding tax provisions as a result corporates/assesses keep on receiving the default notices on regular intervals. Hence, Indian Businesses (domestic as well MNCs) are required have a greater focus on compliance and managing the internal process is becoming critical.

CorpKonnect’s full day workshop on Withholding Taxes will enable corporate executives and practicing professionals to update their knowledge not only to follow them but also to avoid litigation and provide quality services to their client. This will also enable them to focus on growth of their business rather than indulging into avoidable complications.

PROGRAM AGENDA:

Technical Session1: Determination of Withholding Taxes:

• Basic framework
• For payment to NRIs and foreign companies (International Transactions)
• For payment to residents (Domestic Transactions)
• Consequences of non-compliance
• TDS – Exclusions

Recent Judicial pronouncements and case laws of Withholding Taxes

Technical Session 2: Taxation of Non Residents with respect to Capital Gains including Indirect Transfers

• Capital Gains taxation under IT Act
• Capital Gains taxation under DTAA
• Key recent developments
• Case study – Indirect Transfer
• Purchase of capital assets from an NRI
• Practical approach on TDS on indirect transfer
• Recent controversy on LTCG taxation

Technical Session 3: Taxation of Royalty and Fees for Technical Services (FTS)

• Applicable Laws - The income Tax Act 1961 vs the DTAA
• Meaning of Royalty and FTS under Income Tax Act
• Widening scope of Royalty and FTS
• Taxation of Royalty and FTS under Income Tax Act
• Important concepts and clauses related to Royalty and FTS
• Some important case laws

Techical Session 4: Business Profits under Tax Treaties

• Basic Framework
• Taxation of ‘business profits’ of a non-resident
• Taxation of Business Profits
• Permanent Establishment
• Forms of PE

Attribution of Profits to a Permanent Establishment

• Principles of Attribution
• UN Model Convention
• POEM

Some important case Laws