CA Final · Direct Tax Laws & International Taxation · Double Taxation Relief
Meridian Pvt Ltd, a non-resident company, wants to claim relief under a tax treaty that India has entered into under section 159 of the Income-tax Act, 2025. Which of the following must it do to be entitled to the relief?
A non-resident must obtain a certificate of residence from the Government of its own country or specified territory and also provide the other prescribed documents and information. Without both, treaty relief cannot be claimed. Forms 42 and 43 cover residents of India seeking a certificate.
- AObtain a certificate of residence from the Government of its country of residence and furnish the other prescribed documents and informationCorrect
- BObtain a certificate of residence from the Assessing Officer in India in Form No. 43
- CFile Form No. 42 with the Assessing Officer to get a certificate of residence
- DFurnish only a self-declaration of residence, with no other documents
Explanation
Under section 159(8), a non-resident can claim treaty relief only if it obtains a residence certificate from the Government of its country or specified territory and provides the other prescribed documents and information. Form No. 42 and Form No. 43 relate to residents of India who apply for a certificate of residence, so they do not apply here.
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