|
India-France Sign Protocol
India and France signed a Protocol to amend the Double Taxation Avoidance Convention originally signed in 1992. The amendments remove the Most Favoured Nation clause and incorporate BEPS Multilateral Instrument provisions.
India–France Double Taxation Avoidance Convention (DTAC) Amendment:
| Dimension | Key Details |
|---|---|
| Original Convention | Double Taxation Avoidance Convention signed in 1992 |
| Nature of DTAA | Agreement between two countries to prevent double taxation on income of individuals or businesses |
| Key Amendment 1 | Removes Most Favoured Nation clause to eliminate ambiguity in treaty benefits |
| Key Amendment 2 | Incorporates provisions of BEPS Multilateral Instrument to prevent profit shifting |
| Most Favoured Nation Principle | WTO principle requiring equal favourable trading terms to all members if granted to one member |
| BEPS Multilateral Instrument | International treaty enabling modification of existing bilateral tax treaties without individual renegotiation; entered into force in 2018 with effect from 2019 |
| BEPS Objective | Implements OECD G20 BEPS Project measures to prevent base erosion and profit shifting by multinational corporations |