Bookmark Bookmark

Amendment of Double Taxation Avoidance Agreement with Sri Lanka

Amendment of Double Taxation Avoidance Agreement with Sri Lanka

On 12th February 2020, the double taxation avoidance agreement between India and Sri Lanka was amended.

Key Points:

  • Under this amendment, an anti-abuse provision is to be included. Also, the amendment will include Principal Purpose Test. This would help in curbing strategies that exploit gaps in tax rules.
  • India is a signatory of Multilateral Instrument (MLI), whereas Sri Lanka is not. 
  • Thus, it is essential for the countries to insert the Principal Purpose Test to meet the minimum standards.
  • Both Indian and Sri Lanka are members of major multilateral organizations such as OECD, G20, BEPS. 
  • Therefore, it is essential for both the countries to implement standards-based on Multilateral Convention to Implement Tax Treaty related measures.

You might be interested:

Daily News Digest:13 February 2020

Dan David Prize, 2020India’s pioneering feminist scholar and activist Gita Sen, has won the prestigious Dan David Prize for her work in the fields of population policies, reproductive and sexual ...

4 days ago

Rs. 81.67 crore worth electoral bonds sold before Delhi Assembly Elections

Rs. 81.67 crore worth electoral bonds sold before Delhi Assembly Elections As per the response to an RTI query filed by Commodore Lokesh Batra, there were 139 electoral bonds worth Rs. 81.67 crore sol ...

4 days ago

Conference on Combating Drug Trafficking

Conference on Combating Drug Trafficking Union Home Minister Amit Shah today said that the NDA Government is taking a definitive approach to control drug trafficking and trade under the leadership of ...

4 days ago

Dan David Prize, 2020

Dan David Prize, 2020 India’s pioneering feminist scholar and activist Gita Sen, has won the prestigious Dan David Prize for her work in the fields of population policies, reproductive and sexua ...

4 days ago

One Liners of the Day, 13 February 2020

Important days Theme for ‘International Day of Women and Girls in Science 2020’ - ‘Investment in Women and Girls in Science for Inclusive Green Growth’. National Productivity ...

5 days ago

Daily News Digest:12 February 2020

New bullet proof jacket: Bhabha KavachA newly-developed bulletproof jacket called "Bhabha Kavach", designed by Bhabha Atomic Research Centre would be used by the Central Industrial Security Force (CIS ...

5 days ago

Provide your feedback on this article: