Cal HC: Death to be Presumed of Employee Untraceable for 7 Years, Heirs Entitled to Terminal Benefit  ||  Bom. HC: One-Week Bail Granted to Life Convict to Appear in Entrance Test  ||  Delhi High Court: Victim Cannot Seek Right to be Impleaded in Criminal Revision  ||  All. HC: Extension of Limitation Under A&C Act Can’t be Sought if Party Aware of Contents of Award  ||  Delhi High Court: Material on Which Prosecution Bases its Case Cannot be Disclosed in Parts  ||  Del. HC: Requisite Documents Forming Basis of Show Cause Notice Must be Provided to the Party  ||  Delhi HC: Sensitization of Trial Court Judges Required in Pronouncing Judgements on Conviction  ||  Uttarakhand High Court’s Order for its Relocation Outside Nainital, Stayed by Supreme Court  ||  Suo Motu Cognizance Taken by Gujarat High Court of Fire Accident at TRP Gaming Zone in Rajkot  ||  Ker. HC: Can’t Recall Child Witness to Fill Up Lacuna and Omission in Evidence of Accused    

Cabinet approves protocol amending convention between India and Brazil for avoidance of double taxation - (06 Nov 2019)

Direct Taxation

The Union Cabinet Chaired by the Prime Minister approved the signing of the Protocol amending the Convention between India and Brazil for the avoidance of double taxation and to prevent fiscal evasion with respect to taxes on income. Implementation would be watched and reported by the Ministry. It aims to avoid the burden of double taxation for taxpayers of two countries in order to promote and thereby stimulate flow of investment, technology and services between India and Brazil. The revised DTAC will bring transparency in tax matters; help curb tax evasion and tax avoidance, remove double taxation.

The Protocol updates the provisions in the DTAC for exchange of information as per international standards. The Amending Protocol between India and Brazil will facilitate elimination of double tax. Further, clear allocation of taxing rights between Contracting States through DTAC will provide tax certainty to investors & businesses of both countries. The Amending Protocol will further augment the flow of investment through lowering of tax rates in source State on interest, royalties and fees for technical services. The Amending Protocol implements minimum standards and other recommendations of G-20 OECD Base Erosion Profit Shifting (BEPS) Project. A Preamble Text, a Principal Purpose Test, a general anti abuse provision in the DTAC along with a Simplified Limitation of Benefits Clause as per BEPS Project will be included to curb tax planning strategies which exploit gaps and mismatches in tax rules.

The existing DTAC between India and Brazil was signed on 26th April, 1988 and was amended through a Protocol signed on 15th October 2013 in respect of exchange of information. Through the present Protocol, changes have been made on various other aspects. The existing Double Taxation Avoidance Convention (DTAC) between India and Brazil being very old was required to be amended to bring it in line with international developments and also to implement the recommendations contained in the G20 OECD Base Erosion and Profit Shifting Project (BEPS).

Tags : CONVENTION   APPROVAL   DOUBLE TAXATION  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved