 "The BEPS effect: Is India ready?")
How does the multilateral convention (MLC) impact Indian businesses?
The MLC will primarily impact those multinational enterprises that are using low-tax jurisdictions and favourable treaty shopping to minimise their tax liability in their global operations. “This will impact taxpayers engaging in egregious tax planning schemes,” says Rakesh Nangia, managing partner, Nangia & Co, a chartered accountancy firm. It will apply to 93 tax treaties that India has with other countries. “The MLC will essentially modify the global tax treaty framework. It will sit atop all such covered tax agreements,” adds Nangia. Experts say Indian companies having local operations alone may not
