India and France signed amending protocol
to revise DTAC
¨
India and France signed
amending protocol to revise DTAC.
¨ The Amending Protocol to
revise the India–France Double Taxation Avoidance Convention (DTAC) was signed
during the visit of French President Emmanuel Macron to India.
¨ The protocol was inked by
CBDT Chairperson Ravi Agrawal and French Ambassador to India Thierry Mathou.
¨
Under the amended
provisions, full taxing rights on capital gains from the sale of shares have
been granted to the country where the company is resident.
¨
The Most-Favoured-Nation
(MFN) clause was deleted from the protocol, thereby resolving all related
issues.
¨
The definition of ‘Fees
for Technical Services’ was modified by aligning it with the India US Double
Taxation Avoidance Agreement provisions.
¨
The Amending Protocol
also updated the rules for the exchange of information and introduced a new
article on assistance in tax collection in accordance with international
standards.
¨ The revised framework is
expected to facilitate seamless exchange of tax information between the two
countries.
¨ The changes will further strengthen mutual tax cooperation and transparency between India and France.
¨ The amended protocol will come into force after completion of internal legal procedures in both countries.
