Updated By: LatestGKGS Desk
India & China Signed Protocol To DTAA To Prevent Tax Evasion
India & China Signed Protocol To Double Taxation Avoidance Agreement To Prevent Tax Evasion: Details, Features, Highlights
India and China have signed a protocol to amend Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation and for prevention of fiscal evasion with respect to taxes on income by allowing the exchange of information.
Under Section 90 of Income-tax Act, 1961, India can enter into an agreement with the foreign country or specified territory for the avoidance of double taxation of income, for the exchange of information for the prevention of evasion.
The Protocol to amend DTAA with China updates existing provisions for exchange of information to the latest international standards. It incorporates changes required to implement treaty related minimum standards under the Action reports of Base Erosion & Profit Shifting (BEPS) Project.
Moreover, for minimum standards, it will also bring in changes as per BEPS Action reports as agreed upon by the two sides. It will help prevent tax evasion by allowing the exchange of information.
China
Capital: Beijing
Largest City: Shanghai
Official Language: Standard Chinese
Currency: Renminbi
President: Xi Jinping
