Taxmann International Taxation Ready Reckoner By Daksha Baxi, Surajkumar Shetty Edition April 2025

Taxmann International Taxation Ready Reckoner By Daksha Baxi

Taxmann International Taxation Ready Reckoner By Daksha Baxi

Description

International Taxation Ready Reckoner presents a lucid, all-encompassing reference for readers. Authored by two leading experts in the field—this book incorporates the latest amendments brought about by the Finance Act 2025. It simplifies complex cross-border tax concepts, guiding readers through intricate regulations, bilateral tax treaties, and procedural requirements. With practical examples, case studies, and up-to-date judicial precedents, this Ready Reckoner ensures that readers can advise and comply with India’s ever-evolving international tax landscape.

This book is intended for the following audience:

• Tax & Legal Professionals – Chartered Accountants, tax consultants, legal advisors, and in-house counsels who deal with international taxation and cross-border transactions
• Corporate Executives & Finance Teams – CFOs, finance managers, and corporate tax departments responsible for ensuring tax compliance, structuring overseas investments, and evaluating cross-border business arrangements
• Academics & Students – Faculty, researchers, and advanced students specialising in international taxation, seeking practical insights and practical applications
• Entrepreneurs & SMEs – Business owners expanding internationally who need a straightforward, professional reference to navigate India’s international tax provisions

The Present Publication is the 3^rd Edition, amended by the Finance Act 2025. This book has been authored by CA. Daksha Baxi & Adv. Surajkumar Shetty, with the following noteworthy features:

• [Amended by the Finance Act 2025] Incorporates all legislative updates effective from the latest Finance Act, ensuring readers remain current with recent changes
• [Authoritative Guidance] Written by highly acclaimed tax experts recognised by global legal rankings
• [Practical Insights & Case Studies] Illustrates practical transactions and solutions, culminating in a comprehensive case study applying the rules and concepts explained
• [Step-by-step Explanations] Offers clarity on understanding the interplay between the Indian Income-tax Act 1961, Double Taxation Avoidance Agreements (DTAAs), and OECD/UN model conventions
• [Useful Tools & Aids] Contains ready reckoners, tabular comparisons, and examples to simplify complex topics like Permanent Establishment, Transfer Pricing, GAAR, etc.
• [Latest Judicial Precedents] In-depth discussion of landmark Indian and international rulings, enabling readers to strategise with the most recent case laws
• [Practical Compliance Checklist] Guides readers on obtaining a Permanent Account Number (PAN), Withholding Tax (TDS) compliance, return filing, Transfer Pricing documentation, and other procedural mandates

The coverage of the book is as follows:

• Foundational Concepts
• Residential status determination (individuals, corporates, other entities)
• Scope of income and deemed accrual principles
• Treaty Analysis
• Key DTAA articles and interpretation
• Most Favoured Nation (MFN) clauses, tie-breaker rules, and OECD/UN model commentary
• Setting Up in India
• Business structures: subsidiaries, liaison offices, branch offices
• Valuation provisions, anti-avoidance measures on share premium
• Taxation of Various Income Streams
• Business income (Permanent Establishment, attribution of profits)
• Dividend, interest, royalty, and fees for technical services
• Capital gains, including indirect transfer of Indian assets
• Employment income (including ESOPs for globally mobile employees)
• Special regimes for NRIs, Foreign Portfolio Investors (FPIs), AIFs, REITs, InvITs, etc.
• Transfer Pricing Regulations
• Arm’s length price determination methods, safe harbour rules, Advance Pricing Agreements (APAs), secondary adjustments
• Business Reorganisations & Exits
• Tax-neutral amalgamation, demerger conditions, liquidation aspects, set-off and carry-forward of losses
• Dispute Resolution & Compliance
• Assessments, appeals, DRP, Mutual Agreement Procedure (MAP), Authority for Advance Rulings (AAR)
• GAAR provisions, how and when they apply
• Withholding tax obligations, TDS/TCS rates, payment procedures
• Case Study
• An extensive, end-to-end illustration combining multiple cross-border tax scenarios, from structuring to compliance

The structure of the book is as follows:

• Logical Progression – Starts with fundamental concepts of residency and the broad framework of international taxation, then progresses through specific income types, compliance measures, and dispute resolution avenues
• Chapter-wise Explanation – Each chapter addresses a distinct segment—e.g., Taxation of Dividends, Taxation of Royalties, Transfer Pricing, etc.—allowing readers to locate relevant material instantly
• Practice-oriented Approach – Every chapter includes practical examples, references to judicial rulings, and frequently encountered Q&A
• Dedicated Case Study – Concludes with a comprehensive scenario tying all concepts together, serving as a blueprint for real-world advisory and compliance scenarios
• Appendices – Relevant forms, statutory references, TDS/TCS rate charts, and a glossary of technical terms for quick lookup

About the author

Daksha Baxi

Ms. Daksha Baxi is a distinguished tax adviser in India, consistently recognised by leading global surveys and ranking agencies for her expertise. She is a fellow member of both the Institute of Chartered Accountants in England & Wales and the Institute of Chartered Accountants of India, with an honours degree in Economics.

Daksha’s career spans over a decade and a half in the UK, Switzerland, and various parts of Europe and the USA, where she specialised in advising on cross-border investments and navigating bilateral tax treaties. Her return to India coincided with the country’s economic liberalisation, providing her with a unique opportunity to guide businesses through this transformative period. Inspired by India’s globalising economy, she established her professional philosophy: helping clients achieve their commercial objectives in an efficient and legally sound manner.

Her extensive experience includes significant tenures at premier law firms such as Nishith Desai Associates, Khaitan & Co., and Cyril Amarchand Mangaldas. Daksha’s work spans the full spectrum of international taxation, including domestic and international mergers and acquisitions, private equity investment deals, complex employee incentive programs, cross-border estate and succession planning, venture capital fund structuring, transactions under the Insolvency & Bankruptcy Code, and the establishment of InvITs and REITs. She has also represented clients before revenue authorities and secured landmark rulings before the Authority for Advance Rulings (AAR).

Daksha has contributed to the formulation of critical regulations, including the SEBI (Share Based Employee Benefits) Regulations, Alternative Investment Funds Regulations, and E-Commerce Taxation. She has advised SEBI on frameworks for Indian companies to list abroad and merge with foreign entities. A prolific writer, she has authored numerous articles and research papers on a wide range of tax issues, contributed to various publications of IBFD and Kluwer Law, and participated in international conferences and panel discussions, including those of the International Fiscal Association, Foundation for International Tax, International Bar Association, and STEP.

After a rewarding career with leading law firms, Daksha shifted her focus to serving smaller businesses, advising families on succession and estate planning, and teaching practical international taxation at various institutions. This book is a continuation of her passion for making complex tax matters accessible.

Daksha’s exemplary contributions to the field have earned her numerous accolades, including recognition as a top tax expert by:

• Euromoney’s World Tax Experts’ Guide
• Chambers & Partners
• Legal 500
• ITR – Women in Tax Leaders Guide
• Who’s Who Legal
• India Business Law Journal’s A-List of Top 100 Practitioners in India.

Her legacy as a leading tax expert in India is marked by her dedication to guiding clients through complex tax landscapes and her commitment to education and mentorship in the field.

Surajkumar Shetty

Surajkumar Shetty is an accomplished legal professional who is enrolled with the Bar Council of Maharashtra & Goa and has over 12 years of experience in advising clients on direct taxation. After completing his law degree, he has worked with some of India’s leading law firms, gaining extensive exposure to complex domestic and international tax matters.

Suraj specialises in advising clients on various income tax aspects, particularly in M&A transactions, business restructuring, risk mitigation, litigation strategies, and funds taxation. His expertise also includes drafting and negotiating agreements from an income tax perspective. He has represented both domestic and foreign clients before Indian tax authorities and has handled cases before the Income Tax Appellate Tribunal, High Courts, and the Supreme Court of India.

His client base spans diverse industries, including infrastructure, financial services, funds, manufacturing, and real estate. Beyond his practice, Suraj is an active contributor to the tax community. He has authored articles for renowned publications like the International Tax Review and IBFD and co-authored chapters in academically significant books published by the Chamber of Tax Consultants, the International Taxation Committee, and IFA Tax Conference (2013 Compendium). Suraj is also a sought-after speaker, having conducted sessions on taxation for tax professionals and law students.