Cabinet approves amendment of agreement with Sri Lanka

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<pre>Cabinet approves amendment of agreement with Sri Lanka


New Delhi. The Union Cabinet on Wednesday approved the signing and ratification of the protocol to amend the agreement between India and Sri Lanka to prevent double taxation and prevent financial evasion with respect to taxes on income. The Treaty (DTAA) provides for general misuse provisions.

The benefit of loopholes and inconsistencies in the tax rules Tax determined plan will help identify prevention tips. Significantly, the existing DTAA between India and Sri Lanka was signed on 22 January 2013 and the treaty came into force on 22 October 2013.

India and Sri Lanka are members of the inclusive framework, thus allowing them to join the Inclusive Framework countries In respect of DTAA, minimum standards are required to be implemented under the G-20 OECD BEPS Action Report. It states that the minimum standards under BEPS Action 6 can be met through a multilateral agreement to implement measures related to the tax treaty through Aadhaar tax evasion prevention and benefit transfer (MLI) or bilateral contracts. India is a signatory to MLI. Sri Lanka is yet to sign the MLI.

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