Union Cabinet approved Protocol on Double Taxation Avoidance with Israel and Vietnam

Oct 8, 2015 12:09 IST

The Union Cabinet on 7 October 2015 approved the Protocol between India and Israel and between Indian and Vietnam for avoidance of double taxation and for prevention of fiscal evasion with respect to taxes on income and on capital.

The Protocol with both the countries provides for internationally accepted standards for effective exchange of information on tax matters including bank information and information without domestic tax interest.

With this, the information received from Israel and Vietnam in respect of a resident of India can be shared with other law enforcement agencies with authorisation of the Competent Authority of both the countries and vice versa.

Besides, the Protocol with Israel also provides for Limitation of Benefits Article as an anti-abuse provision aimed at preventing misuse of the Convention. The provisions of this Article enable use of the provisions of domestic law and measures concerning tax avoidance or evasion in the event of misuse of the Convention.

Background:

The existing Double Taxation Avoidance Convention (DTAC) between Indian and Israel was signed in 1996 and between India and Vietnam was signed in 1994.

Both the countries concurred with India to update Article 27 on the Exchange of Information in DTAC signed with India to meet internationally accepted standards and added a new Article on Assistance in the Collection of taxes.

Now get latest Current Affairs on mobile, Download # 1  Current Affairs App

Is this article important for exams ? Yes7 People Agreed

DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

Latest Videos

Register to get FREE updates

    All Fields Mandatory
  • (Ex:9123456789)
  • Please Select Your Interest
  • Please specify

  • ajax-loader
  • A verifcation code has been sent to
    your mobile number

    Please enter the verification code below

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK