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Government ratifies convention on tax treaty related changes against BEPS

IANS  |  New Delhi 

The Union cabinet has approved the ratification of an international convention which enables the implementation of treaty related changes to achieve anti-abuse "(BEPS)".

Accordingly, the Union cabinet chaired by approved the ratification of the "Multilateral Convention to Implement Treaty Related Measures to Prevent Base Erosion and Profit Shifting".

"The Convention will modify India's treaties in order to curb revenue loss through treaty abuse and strategies by ensuring that profits are taxed where substantive economic activities generating the profits are carried out and where value is created," an official communique said.

The Convention enables countries to implement the treaty related changes to achieve anti-abuse BEPS outcomes through the multilateral route without the need to bilaterally re-negotiate each such agreement which is burdensome and time consuming.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 12 2019. 23:50 IST
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