India implements tax residency certificate requirements [TAX ALERT]

October 11, 2012

The Finance Act, 2012 introduced provisions in the Indian Tax Laws (ITL) requiring nonresidents (NRs) to furnish a tax residency certificate (TRC) in a specified format from the countries of their residence to avail the benefit of an income tax treaty.

On 17 September 2012, the Central Board of Direct Taxes issued a notification introducing the rules with respect to the application format and procedure for obtaining a TRC.

The rules are applicable for financial years beginning on or after 1 April 2012.

Rules relevant for obtaining TRC

NRs are required to obtain a TRC duly verified by the government of the country of which the NRs claim to be residents for the purposes of a tax treaty.

Further details are available from the Ernst & Young International Tax Alert which can be accessed using the link below:

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