New Delhi [India] April 13 (ANI): The Central Board of Direct Taxes (CBDT) on Friday notified the protocol amending the Double Taxation Avoidance Convention (DTAC) between India and Kazakhstan.
CBDT spokesperson Surabhi Ahluwalia said, "The Protocol provides internationally accepted standards for effective exchange of information on tax matters. The Protocol replaces the existing Article on Assistance in Collection of Taxes with a new Article to align it with international standards."
Ahluwalia added that the information received from Kazakhstan for tax purposes can be shared with other law enforcement agencies with the authorisation of the competent authority of Kazakhstan and vice versa.
The Protocol inserts a Limitation of Benefits Article, to provide the main purpose test to prevent misuse of the DTAC and to allow application of domestic law and measures against tax avoidance or evasion.
It also inserts specific provisions to facilitate relieving of economic double taxation in transfer pricing cases.
"This is a taxpayer-friendly measure and is in line with India's commitment under Base Erosion and Profit Shifting (BEPS) Action Plan to meet the minimum standard of providing Mutual Agreement Procedure (MAP) access in transfer pricing cases," Ahluwalia said.
India and Kazakhstan had on January 6, 2017, signed a protocol to amend the existing DTAC. They protocol was notified in the official gazette on April 12, this year. (ANI)
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