India and China have amended the bilateral tax treaty which will help prevent tax evasion by allowing exchange of information, the Finance Ministry said Monday. The Government of India and the People’s Republic of China have signed a protocol to amend the Double Taxation Avoidance Agreement (DTAA) for the avoidance of double taxation

Important Fact:

• In the agreement it has been said that the current amendments related to the exchange of information in the treaty with the latest amendment have been made in line with the new international standards.
• In addition to this, necessary changes have also been made in the treaty to implement base degradation and action plan for implementation of minimum standards of profit transfer (BEPS) project.
• In addition to other changes, in this consent letter, the existing provisions have been updated for information exchange in the latest international norms. Based on the consent of both sides in this treaty, many changes have been made in accordance with the BEPs report.
• Along with the minimum standards, the necessary changes have been made in accordance with the agreement made between the two parties in this treaty.