Cabinet approves protocol amending DTAA between India and Kyrgyz

The Union Cabinet approved protocol amending Agreement between India and Kyrgyz for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.
The Protocol amending Double Taxation Avoidance Agreement (DTAA) aims to update Article 26 (Exchange of Information) of DTAA to international standards.

Key Facts

The updated Article 26 of DTAA provides for exchange of information to widest possible extent. The new paragraphs 4 and 5 have been inserted into Article 26 to make mandatory for States to provide information which is requested. Such information cannot be denied on ground that it has no domestic tax interest in that information or held by bank or a financial institution, etc. The Protocol further empowers India to use information received under DTAA for other law enforcement purposes on supplying state authorizing such use.

Background

The existing DTAA between India and Kyrgyz Republic was notified in February 2001. The Protocol amending DTAA for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income has been agreed to be signed between two countries.

Month: Current Affairs - November, 2017