India and China have amended the bilateral tax treaty which will help prevent tax evasion by allowing the exchange of information, the Finance Ministry said Monday.
The Government of India and the People’s Republic of China have signed a protocol to amend the Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income. The Protocol updates the existing provisions for exchange of information to the latest international standards.
Further, the Protocol incorporates changes required to implement treaty related minimum standards under the Action reports of Base Erosion & Profit Shifting (BEPS) Project, which allows for greater transparency of MNC’s tax information on a country-by-country basis
Besides minimum standards, the Protocol brings in changes as per BEPS Action reports as agreed upon by the two sides, the ministry added.
The Reserve Bank on Wednesday eased norms for companies in the manufacturing sector in raising overseas funds and allowed Indian banks to market masala bonds in line with the government’s measures to prop up the rupee.