Corporate Tax

Corporate Tax Research Across Every Relevant Act

Research transfer pricing, DTAA provisions, TDS on cross-border payments, MAT / AMT computations, and Companies Act compliance. Citations span the IT Act 1961 & 2025, India's 90+ DTAAs, CBDT and CBIC notifications, and Supreme Court / ITAT rulings — all in a single search.

Research Corporate Tax
DTAAs on file90+Comprehensive agreements + limited DTAAs + TIEAs, with article-level indexing
Transfer-pricing & corporate sectionsSections 92-115JHArm's length, APA, safe harbour, MAT, BEPS provisions — with IT Act 2025 mapping
SC / ITAT / AAR rulingsOn demandFresh orders and rulings pulled when your query involves case law — no stale cache
The problem

Corporate tax advisory requires simultaneous cross-referencing across multiple acts, treaties and regulatory frameworks. A single cross-border payment triggers questions under the IT Act (Sec. 195 TDS), the applicable DTAA (PE threshold, beneficial ownership, MFN clause, treaty rate for FTS / royalty), transfer pricing rules (Sections 92-92F, arm's length methods), and the Companies Act (related-party disclosure). CAs working on corporate mandates spend more time navigating between sources than analysing the actual tax position.

Ask TaxMarg

A real question, a cited answer

app.taxmarg.ai · sample answergrounded
An Indian private limited company is paying ₹40 lakh to a US-based software vendor for a shrink-wrapped software licence. What is the TDS treatment under Sec. 195 and the India-US DTAA?
Based on TaxMarg's knowledge and sources4.6s · 4 sources
Based on the Supreme Court's binding ruling in Engineering Analysis Centre of Excellence v. CIT (2021), the payment is not taxable as 'royalty' in India under either the Income-tax Act or the India-US DTAA, provided the payment is for a shrink-wrapped / end-user software licence (i.e., a copyrighted article, not copyright itself). [Engineering Analysis Centre v. CIT (2021) 125 taxmann.com 42] India-US DTAA Article 12(3) defines royalty as consideration for the use of or right to use a copyright. A shrink-wrap licence transfers only the right to use the product, not the underlying copyright — so Article 12 does not apply. [Article 12(3)] Consequently, Sec. 195 of the IT Act, 1961 (now consolidated under Sec. 393 of the IT Act, 2025) does not trigger TDS, since the income is not chargeable to tax in India (no PE, and not royalty / FTS under DTAA). [Sec. 195 (↔ Sec. 393 IT Act 2025)] Practical steps: (a) obtain a Tax Residency Certificate from the US vendor under Sec. 90(4) and Form 10F (self-declaration of no PE in India); (b) file Form 15CB (CA certificate) and Form 15CA Part D confirming non-taxability; (c) retain the licence agreement confirming the payment is for an end-user software licence, not customised development or copyright-in-software. [Rule 37BB (Form 15CA / 15CB)] Red flag: If the contract includes customisation, source-code access, or territorial exclusivity, the Engineering Analysis protection may not apply and the payment could fall back into the 'royalty' bucket — flag for deeper analysis.

Every claim above traces to a primary source in our knowledge base

How TaxMarg helps

Transfer Pricing & Arm's Length

Research arm's length pricing methods (CUP, RPM, CPM, TNMM, PSM) under Sections 92C-92CA, safe harbour rules under Sec. 92CB, APA provisions, and the latest CBDT transfer-pricing instructions — with applicable thresholds for the current AY.

DTAA & Cross-Border Taxation

Search across India's 90+ Double Taxation Avoidance Agreements. Get the withholding-tax rate for royalty / FTS / interest under a specific treaty, check PE constitution thresholds, apply the MFN clause where available, and verify TRC / Form 10F requirements under Sec. 90(4) — all in one query.

MAT, AMT & Concessional Regimes

Compute Minimum Alternate Tax under Sec. 115JB (with the book-profit adjustments schedule), compare with the concessional 22% / 15% rates under Sections 115BAA / 115BAB (↔ Sections 200 / 201 of IT Act 2025), and analyse irrevocability conditions, MAT credit forfeiture, and whether the company qualifies for the manufacturing rate.

What you get back

Structured, exportable output

TDS on non-resident payments — decision treeSec. 195 / Sec. 393 workflow
1
Classify the income (royalty / FTS / interest / dividend / capital gains / other)
IT Act + DTAA definition
2
Check domestic rate under Sec. 115A / Chapter XVII-B
IT Act 1961
3
Check applicable DTAA rate & beneficial-ownership conditions
DTAA — Article 10/11/12/13
4
Obtain Tax Residency Certificate + Form 10F from payee
Sec. 90(4) + Rule 21AB
5
Apply the more beneficial rate (DTAA vs domestic) per Sec. 90(2)
IT Act 1961
6
File Form 15CB (CA certificate) + Form 15CA (payer declaration)
Rule 37BB
7
Retain contract, invoice, FIRC / BRC for audit trail
Best practice

Try these questions

→What is the TDS treatment under Sec. 195 on a ₹40 lakh payment to a US software vendor for a shrink-wrap licence, after the SC ruling in Engineering Analysis Centre v. CIT (2021)?
→How is arm's length price determined under TNMM for an IT-services company with related-party transactions exceeding ₹20 crore, and when is a Transfer Pricing Study Report mandatory under Sec. 92E?
→Can a company that opted for Sec. 115BAA at 22% claim MAT credit accumulated under the old regime? What does CBDT Circular 29/2019 say?
→What constitutes a Permanent Establishment under the India-Singapore DTAA Article 5 for a company providing project-management services in India for 200 days?
→What are the book-profit adjustments required under Sec. 115JB for computing MAT, specifically for provisions for diminution in value of assets?
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