| COURT: | ITAT Rajkot |
| CORAM: | Pramod Kumar (AM), Rajpal Yadav (JM) |
| SECTION(S): | Article 24 |
| GENRE: | International Tax |
| CATCH WORDS: | India-Singapore DTAA, Limitation of Benefits |
| COUNSEL: | Paurami Sheth |
| DATE: | October 9, 2015 (Date of pronouncement) |
| DATE: | October 19, 2015 (Date of publication) |
| AY: | 2011-12 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| Law on applicability of Article 24 of the India-Singapore DTAA (Limitation of Benefits) to a case where the income is not remitted to, or received in Singapore, explained | |
The benefit of treaty protection is restricted to the amount of income which is eventually subject matter of taxation in the source country. This is all the more relevant for the reason that in a situation in which territorial method of taxation is followed by a tax jurisdiction and the taxability for income from activities carried out outside the home jurisdiction is restricted to the income repatriated to such tax jurisdiction, as in the case of Singapore, the treaty protection must remain confined to the amount which is actually subjected to tax. Any other approach could result in a situation in which an income, which is not subject matter of taxation in the residence jurisdiction, will anyway be available for treaty protection in the source country
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