International Taxation

As businesses increasingly expand into diverse geographies, navigating complex international taxation laws becomes crucial. Ahuja & Ahuja Chartered Accountants, International Tax Consultants in Delhi/NCR, India, is here to help.

Our team of expert and experienced Chartered Accountants, with industry experience of over two decades, serves clients in the NCR region of New Delhi, Noida, Gurugram (Gurgaon), and Greater Noida. We provide a comprehensive range of services in international taxation, including transfer pricing, international taxation in India, NRI Taxation, Expat Taxation, Double Taxation Avoidance (DTAA) Advisory etc.

Our Service Offerings

Transfer Pricing Matters

Our team has extensive experience in transfer pricing, which is the practice of charging prices for transferring goods or services between related parties. Many countries have become sensitive to the potential for shifting profits with transfer pricing and have adopted rules regulating prices or allowance of deductions or inclusion of income for related party transactions. Our team can assist with transfer pricing matters, including ensuring compliance with regulations and advising on best practices.

International Taxation in India

We provide guidance on international taxation in India, including DTAA understanding and framework, taxation of expats, advice on cross-border transactions, advice on prevailing international laws and procedures, advice on various aspects of FEMA, foreign exchange filing and compliances, strategizing, assessing, and evaluating inbound and outbound investments, and assistance in acquiring relevant regulatory approvals and undertaking compliances. Our team has international alliances and close ties with our foreign affiliates, who possess the technical expertise to help you navigate the complex maze of international tax laws worldwide.

Non-Resident Indian (NRI) Taxation in India

We provide expert advice on non-resident Indian (NRI) taxation in India, including representation before revenue authorities and managing international tax litigations. Our team can help you navigate the complexities of NRI taxation and ensure compliance with relevant regulations.

Withholding Tax

Many countries require people paying non-residents to collect the tax due from a non-resident with respect to particular income by withholding such tax from such payments and remitting the tax to the government. Our team can assist with understanding and complying with withholding tax regulations, including filing tax returns and claiming refunds.

Treaties

Many nations have entered into tax treaties, also called Double Tax Avoidance Agreements, with other countries to avoid or mitigate double taxation on an income. Our team can provide guidance on tax treaties, including “tie-breaker” clauses for resolving conflicts between residency rules and mechanisms for resolving double taxation disputes on the taxability of incomes.

Taxation of Cross-border Employees

With globalization, cross-border employment has become more common, with companies employing workers from different countries to work in different jurisdictions. This can create complex tax issues for both the employer and employee, as different countries may have different tax laws regarding employment income.

In general, cross-border employees may be subject to tax in both their home country and the country where they are working, which can result in double taxation. To avoid this, many countries have entered into tax treaties that provide rules for determining which country has the right to tax the employment income.

Additionally, cross-border employees may be subject to different social security laws and may be required to make contributions to social security programs in both their home country and the country where they are working.

Ahuja & Ahuja Chartered Accountants is a leading provider of international taxation services in Delhi/NCR, India. Our team of experienced professionals is here to help businesses navigate the complex world of international taxation, providing expert guidance on international taxation and transfer pricing, international taxation in India, and objectives of international taxation. Contact us today at info@ahujaandahuja.in to learn more about how we can help your business thrive in the global marketplace.

Frequently Asked Questions (FAQs) about Foreign Exchange Regulations in India

What is the Liberalised Remittance Scheme?

The Liberalised Remittance Scheme (LRS) is a scheme introduced by the Reserve Bank of India (RBI) that allows resident individuals, including minors, to remit up to USD 250,000 per financial year for any permissible current or capital account transaction or a combination of both.

Who is an authorized dealer in respect of forex transactions?

An authorized dealer is any person specifically authorized by the RBI to deal in foreign exchange or foreign securities, and it usually includes banks.

Can a person resident in India hold assets outside India?

Yes, a person resident in India can own, hold, transfer or invest in a foreign security, foreign currency, or any immovable property located outside India if such security, currency, or property was acquired, owned or held by such person when he/she was a resident outside India or inherited from any person who was a resident outside India. A resident individual can also acquire property and other assets overseas under the Liberalised Remittance Scheme.

What are the accounts that can be opened in India by an NRI?

An NRI can open the following accounts in India:

• Non-Resident External Account (NRE) Account: It is an Indian rupee-denominated account used to park foreign earnings in India. The deposits in this account are exposed to currency fluctuation.
• Non-Resident Ordinary (NRO) Account: It is also an Indian rupee-denominated account. It is used to manage the income earned in India like dividends, rental income, pension, etc. Tax at 30% (plus applicable surcharge and cess) is deducted at source on interest earned on an NRO account.
• Foreign Currency Non-Residential (FCNR) Account: It is a foreign currency-denominated account and can be opened only in the form of term deposits of 1 to 5 years. Interest income earned on funds in an FCNR account is tax-free in India.

Can a resident individual remit money as a gift to an NRI who is a close relative of the resident individual?

Yes, a resident individual can make a rupee gift to an NRI who is a close relative of the resident individual. However, such amount should be credited to the Non-Resident Ordinary (NRO) Account of the NRI. The gift amount should be within the overall limit of USD 250,000 per financial year as allowed under the LRS for a resident individual. It is the responsibility of the resident donor to ensure that the aggregate amount of all the remittances made by him/her during a financial year, including the gift amount, does not exceed the limit specified under the Liberalised Remittance Scheme.

Are there any restrictions on the use of funds remitted under LRS?

Yes, there are some restrictions on the use of funds remitted under the LRS. The remittance cannot be used for prohibited transactions, such as margin trading, lottery winnings, or other speculative purposes. Additionally, the funds cannot be used for making investments in prohibited countries, such as Pakistan or North Korea.

Are there any limits on the amount of foreign currency that can be carried while traveling abroad?

Yes, there are limits on the amount of foreign currency that can be carried while traveling abroad. As per the RBI regulations, Indian residents can carry up to USD 3,000 or its equivalent in other currencies while traveling abroad. However, if a person is traveling to Iraq or Libya, the limit is restricted to USD 1,000 or its equivalent.