Saturday, October 18, 2014

E' COMMERCE- Domestic Law v INternational Law ( mainly Tax Treaties) CONTD.



More Stories on : Taxation | E-Commerce & E-Business 
Comments contd.
For treaty implications, consider on a sampling basis, the following
SINGAPORE
..... with respect to taxes on income,
( > NETHERLANDS
......with respect to taxes on income and capital gains and for the encouragement of mutual trade and investment: have agreed as follows J
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2. This Convention shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of the present Convention in addition to, or in place of, the existing taxes referred to in paragraph (1) of this article.
3. The competent authorities of the Contracting States shall notify to each other any significant changes which are made in their respective taxation laws. )




2. The term "permanent establishment" includes especially :
(g)

a warehouse in relation to a person providing storage facilities for others;

5. Notwithstanding the provisions of paragraphs 3 and 4, and enterprise shall be deemed to have a permanent establishment in a Contracting State and to carry on business through that permanent establishment if it provides services or facilities in that Contracting State for a period of more than 183 days in any fiscal year in connection with the exploration, exploitation or extraction of mineral oils in that Contracting State.
7. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include :
(a)

the use of facilities solely for the purpose of storage, display or occasional delivery of goods or merchandise belonging to the enterprise ;
(b)

the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or occasional delivery;

However, the provisions of sub-paragraphs (a) to (e) shall not be applicable where the enterprise maintains any other fixed place of business in the other Contracting State through which the business of the enterprise is wholly or partly carried on.
9. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise itself or on behalf of that enterprise and other enterprises controlling, controlled by, or subject to the same common control, as that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph.
10. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other Contracting State (whether through a permanent establishment or otherwise shall not of itself constitute either company a permanent establishment of the other.
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ARTICLE 7  BUSINESS PROFITS 
 ....

On the moot point as to whether the treaty applies also to taxes imposed /collected by states, -

Other treaty provisions, of relevance:

  • ....between the Government of the Republic of India and the Government of the Federal Republic of Germany
  • ....after the completion by both the Contracting States to each other of the procedure required under their laws in accordance with article 28 of the said Agreement ;
  • ...the Central Government hereby directs that all the provisions of the said Agreement shall be given effect to in the Union of India.
  • ...and for promoting their mutual economic relations ;
Also, Of relevance >

india.angloinfo.com/money/general-taxes/state-government-taxes/
This is levied by the state government on various forms of entertainment. ... While excise duty is levied only on goods manufactured in India, VAT is imposed on ...

www.mukeshraj.com/vat.html
It is a form of indirect Tax and is in nature of multipoint sales tax that needs to be paid to state in form of VAT. It is levied under Central and State VAT legislation ...

www.archive.india.gov.in/citizen/taxes.php?id=5
VAT is the indirect tax on the consumption of the goods, paid by its original producers ... The government levies Sales Tax principally on intra-state sale of goods.

VAT
 [PDF]A brief on VAT - Commercial Taxes Department






  1. ctax.kar.nic.in/what_vat/About%20vat%20nnew.pdf
    VAT is a multi-stage tax levied at each stage of the value addition chain, with a provision to ... the basis of 'Tax invoice' issued by the dealers selling goods to the ..
 

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