Navigating international tax treaties can feel like deciphering ancient scripts, but understanding concepts like the "make available" clause and the Most Favored Nation (MFN) clause could be the key to reducing your tax burden in India. These provisions, embedded in many treaties India has signed with countries like the US and UK, allow for beneficial tax treatment.
The "make available" clause essentially transfers the right to tax certain payments from India to another country under the treaty, provided specific conditions are met. Similarly, the MFN clause ensures that favorable tax treatment extended to one country automatically applies to others with equivalent agreements.
For non-residents, this means less hassle with tax deductions in India—but there’s a catch. You need to furnish proper documentation, including:
Form 10F
Tax Residency Certificate (TRC) issued by your local tax authority
No PE Certificate or
Other relevant documents
These certifications prove your eligibility for claiming treaty benefits and smoothen the process for your payor to skip Indian tax deductions.
Confused ? No worries—help is just a message away.
Whether you need guidance on certifications or filing requirements, we’re here to assist.
That’s your tax hack for today—because paying taxes should be lawful, not painful! 😄
PS : Got questions or need help with your documentation? Connect with me on WhatsApp!
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