Ministry of Finance

Posted On: 07 FEB 2018 8:58PM by PIB Delhi

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for signing and ratification of protocol amending the Agreement between India and China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income.

Besides other changes, the Protocol updates the existing provisions for exchange of information to the latest international standards. Further the Protocol will incorporate changes required to implement treaty related minimum standards under the Action reports of Base Erosion & Profit shifting (BEPS) Project, in which India had participated on an equal footing. Besides minimum standards, the Protocol will also bring in changes as per BEPS Action reports as agreed upon by two sides.

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Double taxation agreement update: protocol adopts international exchange-of-information standards and implements BEPS minimum standards between parties. The Cabinet approved signing and ratification of a protocol amending the bilateral Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion, modernising the treaty by updating exchange of information provisions to contemporary international standards and incorporating changes required to implement treaty-related minimum standards from the BEPS project, together with additional bilateral BEPS-consistent amendments to the treaty's compliance and information-exchange framework.