Ch 4 · DTAA & International Taxation

5 concept points · 3 formulas · 4 exam-critical points.

📘 Core concepts

• 1Double Taxation Avoidance Agreement: bilateral treaty under Sec 90/90A.
• 2OECD Model & UN Model — India follows UN model (source country favoured).
• 3Treaty override: Sec 90(2) — beneficial to assessee applies.
• 4Permanent Establishment (PE): fixed place, service, agency, construction (varies by treaty).
• 5Taxation of business income only if PE; dividend / interest / royalty / FTS at treaty rate.