Cabinet approves amendments in taxation agreement with Lanka

Prakash Javadekar

New Delhi (NVI): The Union Cabinet today approved signing of a protocol amending the agreement between India and Sri Lanka for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

The general anti-abuse agreement will result in curbing of tax planning strategies which exploit gaps and mismatches in tax rules under Double Taxation Avoidance Agreement (DTAA), an official statement said.

The existing DTAA between India and Sri Lanka was signed on January 22, 2013 and entered into force on October 22, 2013.

India and Sri Lanka are members of the Inclusive Framework and as such are required to implement the minimum standards under G-20 OECD BEPS Action Reports in respect of their DTAAs with Inclusive Framework countries.