International Tax & DTAA Advisory

Overview

International tax has become the defining legal challenge for any Indian corporate with cross-border operations, and for any foreign entity seeking a tax-efficient India presence. The intersection of India's domestic tax provisions under the Income-tax Act, 2025 (and the 1961 Act for earlier years), the OECD Model Convention as adopted in India's 95+ bilateral DTAAs, the multilateral instrument (MLI), and BEPS action plan implementation creates a regulatory environment where incorrect characterisation of income or entity presence carries material exposure. Corpus Juris Legal advises on all aspects of international tax — treaty benefit eligibility, Permanent Establishment exposure analysis, withholding tax characterisation of cross-border payments, beneficial ownership determinations, and GAAR applicability to treaty structures. For Indian companies expanding overseas, we structure outbound investments under the optimal treaty network — considering the India-Mauritius, India-Singapore, India-Netherlands, and India-UK DTAAs and their amended provisions post-BEPS. For foreign companies establishing an India presence, we assess PE risk under Article 5 of the applicable DTAA and the domestic significant economic presence rules (Explanation 2A to section 9(1)(i) of the Income-tax Act, 1961, carried into the Income-tax Act, 2025). Our transfer pricing practice covers ALP determination, appropriate method selection, controlled transaction documentation, and representation before the Transfer Pricing Officer and ITAT. For clients facing Country-by-Country Reporting obligations under Section 286, we prepare and file CbCR and master file documentation.

Key Service Components

• ◆DTAA benefit analysis and treaty eligibility advisory for 90+ India DTAAs
• ◆Permanent Establishment risk assessment — fixed place, agency, and service PE
• ◆Withholding tax characterisation — royalty, FTS, business income under Indian DTAAs
• ◆Transfer pricing documentation — local file, master file, CbCR under Section 286
• ◆MLI impact analysis on India's treaty network
• ◆GAAR applicability assessment for cross-border structures
• ◆Significant Economic Presence (SEP) and business connection analysis
• ◆Outbound investment structuring — optimal treaty route selection
• ◆Tax residency certificate and beneficial ownership documentation
• ◆Advance Pricing Agreement (APA) application and negotiation support

Our Approach

We structure international arrangements with treaty certainty as the primary objective — not tax minimisation. Every structure is tested against GAAR, beneficial ownership, and the principal purpose test before implementation.

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