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: