Double tax agreement

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preeti (Querist)
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12 December 2011 helo, any one tell me that if there is an DTAA between two countries, according to it "Indian tax" is exempt on afganistan airlines, A co incorporated in afganistan having a branch in india, I want to know whether all the provisions of Income tax like liability to deduct TDS also exempt or only tax on thier income is exempt.

CA Abhishek Rana

CA Abhishek Rana (Expert)
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13 December 2011 The branch of Afghanistan airlines in India is a PE in India and is liable to deduct TDS as per Income tax Act in India and all other provisions shall also apply to PE in India.

As far as the income exemption is concerned, U need to consider the nature of income earned from India and apply the income tax provisions and DTAA provisions in harmony to arrive at correct conclusion.