India-China amend double taxation avoidance treaty to help prevent tax evasion

India and China have amended the bilateral tax treaty which will help prevent tax evasion by allowing the exchange of information, the Finance Ministry said

Press Trust of India November 26, 2018 17:24:32 IST
India-China amend double taxation avoidance treaty to help prevent tax evasion

New Delhi: India and China have amended the bilateral tax treaty which will help prevent tax evasion by allowing the exchange of information, the Finance Ministry said Monday.

IndiaChina amend double taxation avoidance treaty to help prevent tax evasion

Representational image. AFP

The Government of India and the People's Republic of China have signed a protocol on 26 November, 2018, to amend the Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income.

"The Protocol updates the existing provisions for exchange of information to the latest international standards," the ministry said in a statement.

Further, the Protocol incorporates changes required to implement treaty related minimum standards under the Action reports of Base Erosion & Profit Shifting (BEPS) Project.

Besides minimum standards, the Protocol brings in changes as per BEPS Action reports as agreed upon by the two sides, the ministry added.

Under Section 90 of the Income-tax Act, 1961, India can enter into an agreement with a foreign country or specified territory for the avoidance of double taxation of income, for the exchange of information for the prevention of evasion.

Updated Date:

Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply

also read

India and China hold 10th round of military talks days after withdrawal of troops in eastern Ladakh
India

India and China hold 10th round of military talks days after withdrawal of troops in eastern Ladakh

In the meeting, India is likely to insist on a faster disengagement process in areas like Hot Springs, Gogra and Depsang to reduce the tension in the region

India, China will pull back troops from Eastern Ladakh in phased manner, Rajnath Singh tells Rajya Sabha
India

India, China will pull back troops from Eastern Ladakh in phased manner, Rajnath Singh tells Rajya Sabha

India and China have reached an agreement for disengagement in the Pangong Lake area to cease their forward deployments in a phased, coordinated and verified manner, the Union Defence Minister told the Upper House

Will continue engaging with China for disengagement of troops in eastern Ladakh, Centre tells LS
India

Will continue engaging with China for disengagement of troops in eastern Ladakh, Centre tells LS

MoS External Affairs V Muraleedharan says PLA made several attempts to unilaterally alter status quo along LAC but Indian armed forces 'responded appropriately'