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CBDT notifies the Protocol amending the Double Taxation Avoidance Convention (DTAC) between India and Kazakhstan

Capital Market 

A Protocol to amend the existing Avoidance Convention (DTAC) between and Kazakhstan, earlier signed on 9th December, 1996 for the avoidance of and for the prevention of fiscal evasion with respect to taxes on income, was signed on 06.01.2017. The said Protocol has entered into force on 12.03.2018 and was notified in on 12.04.2018.

Salient features of the Protocol are as under:

(i) The Protocol provides internationally accepted standards for effective exchange of information on matters.

Further, the information received from for purposes can be shared with other enforcement agencies with the authorisation of the competent authority of and vice versa.

(ii) The Protocol inserts a Limitation of Benefits Article, to provide a main purpose test to prevent misuse of the DTAC and to allow application of domestic and measures against avoidance or evasion.

(iii) The Protocol inserts specific provisions to facilitate relieving of economic in transfer pricing cases. This is a taxpayer friendly measure and is in line with India's commitment under Base Erosion and Profit Shifting (BEPS) Action Plan to meet the minimum standard of providing Mutual Agreement Procedure (MAP) access in transfer pricing cases.

(iv) The Protocol replaces the existing Article on Assistance in Collection of Taxes with a new Article to align it with international standards.

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First Published: Sat, April 14 2018. 13:11 IST