Most favourable domestic law clause permits application of the more beneficial domestic tax rule instead of treaty provisions for residents. Protocol to the India-Bhutan DTAA incorporates a most favourable domestic law clause making a Contracting State's more beneficial domestic tax law applicable to a resident of the other State to the extent it is more favourable than the treaty; the Protocol is integral to the Agreement and provides that English prevails in case of divergent interpretations.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Most favourable domestic law clause permits application of the more beneficial domestic tax rule instead of treaty provisions for residents.
Protocol to the India-Bhutan DTAA incorporates a most favourable domestic law clause making a Contracting State's more beneficial domestic tax law applicable to a resident of the other State to the extent it is more favourable than the treaty; the Protocol is integral to the Agreement and provides that English prevails in case of divergent interpretations.
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