Tax Treaties: United States And India

Quick Summary.  Situated in South East Asia, India is the second most populous country in the world.  India is comprised of 28 states and eight union territories.  A democratic republic founded by the constitution of India, its seat of government is located in New Delhi.

India taxes resident companies on worldwide income; non-resident companies are tax on Indian-sourced income. The Taxation Laws (Amendment) Act 2019 provide for beneficial, lowered rates with respect to certain newly established domestic manufacturing companies.  In addition, India imposes a Minimum Alternative Tax (MAT).

Recent tax reforms include The Finance Act of 2020, which abolished the levy of the dividend distribution tax (DDT) effective April 1, 2020.  The recently-enacted Direct Tax Vivad se Vishwas Act, 2020 (Scheme) provides a program for settling direct tax litigation.  Moreover, the scope of the equalization levy was extended by the Finance Act, 2020 to e-commerce related providers.

Treaty

Read More