 "tax treaties, GAAR, Multilateral Instrument")
Foreign portfolio investors (FPIs) are jittery as recently revised India-Singapore tax treaty has created confusion over general anti-avoidance rule (GAAR) overriding bilateral tax treaties. This is despite the fact that a high-level panel, led by tax expert Parthasarathi Shome, had recommended that GAAR should not override bilateral tax treaties.
A clause in the revised double taxation avoidance agreement (DTAA) with Singapore says domestic laws such as GAAR will override the treaty, even as the pact has a limitation-of-benefits clause.
The industry is now looking for a clarification on this aspect.
One of the key concerns of foreign investors is how
