The Indian government has entered into double taxation agreements (DBAAs) with different countries in order to avoid double taxation of income and mitigate the unreasonable imposition of constraints on taxpayers. India and the United States have a DBAA that addresses and fully eliminates the frequency of double taxation of income for income earners in both countries. Taxpayers should keep in mind that only income tax is covered by the DTAA India USA. There is no DTAA agreement between India and the US for GST or other types of indirect taxes. The purpose of this article is to discuss the DTAA for India, USA, as it applies to individual taxpayers. The comprehensive DBA Agreement between India and the United States is reproduced below as a reference: Agreement between the Government of the United States of America and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income d. If he is a national of both States or of one of the two States, the competent authorities of the States Parties shall decide by mutual agreement on the matter. The Agreement between India and the Hong Kong Special Administrative Region (HKSAR) of the People`s Republic of China for the avoidance of double taxation has entered into force 5. Maintenance payments paid to a resident of a contact Member State shall be taxable only in that State. The term “maintenance”, as used in this paragraph, means regular payments made on the basis of a written separation agreement or divorce order, separate maintenance or forced assistance, payments made to the beneficiary in accordance with the law of the State in which he is established. 3. If, pursuant to paragraph 1, a company resides in both Contracting States, that company shall apply outside the scope of this Convention, except for the purposes of Article 10, paragraph 2 (dividends), Article 26 (non-discrimination), Article 27 (mutual agreement procedure), Article 28 (exchange of information and mutual assistance) and Article 30 (entry into force). 1.
Under this Convention, a person (other than a natural person) residing in a Contracting State and who receives income from the other Contracting State shall be entitled to tax exemption in that other Contracting State only if the DBA India USA applied to any natural person or to an estate, to a trust, to a partnership, business, other entity of persons or another taxable entity with income in both Ind 1999, 1995, 1994, 1990, 1990, 1.