https://lawjournals.celnet.in/index.php/jtrf <p class="Textbody" style="text-align: justify;"><span lang="EN-IN">Journal of Taxation and Regulatory Framework is a peer reviewed refereed journal that aims at the dissemination and advancement of research in taxation field contributed by the law students, advocates and other professionals of taxation law. The aim of the Journal is to provide a platform to researchers, practitioners, academicians and professionals associated with the field of Taxation and to encourage and promote research across a wide breadth of areas pertaining to Taxation.</span></p> Consortium e-Learning Network Pvt Ltd en-US Journal of Taxation and Regulatory Framework https://lawjournals.celnet.in/index.php/jtrf/article/view/1762 <p>This paper, delves into the intricate international tax law issues surrounding the taxation of crossborder services. While the problem of juridical double taxation is well-established, the complexity of tax treaty allocation rules creates uncertainty and facilitates arbitrage, potentially depriving countries of their taxing rights. This is particularly evident in business services, where transfer pricing and dedicated service clauses are employed, each with its own set of advantages and disadvantages. The<br>study explores the policy dilemma of whether to address these issues through normative refinements, enhanced enforcement, or a combination of both. While transfer pricing offers a more nuanced approach, its resource-intensive nature raises concerns about proportionality, particularly for developing countries. The financial burden associated with building the necessary technical capacity may outweigh the potential tax revenue gains. This raises the question of whether developed countries should contribute more significantly to capacity-building efforts. The analysis begins with a clarification of the concept of "services" and an overview of the international tax nexus. It then examines the structural complexity of tax treaty clauses applicable to cross-border services, before evaluating the merits and shortcomings of withholding taxes and transfer pricing, including their potential interaction.<br>The study also addresses the critical issue of capacity-building in developing countries, considering whether it should be funded by the developing countries themselves or through increased financial contributions from developed nations. Ultimately, this research aims to contribute to a balanced and informed discussion on global tax reform, seeking solutions that are both legally sound and equitable for all countries, regardless of their level of development. The goal is to identify policy options that promote effective tax cooperation and ensure a fair distribution of tax revenues derived from crossborder services.</p> Darsheen Kaur Thapar Falguni Sharma Copyright (c) 2025 Journal of Taxation and Regulatory Framework 2025-03-21 2025-03-21 8 2 1 6