The Union Cabinet has approved the signing and ratification of protocol amending the double taxation avoidance agreement with China. The Cabinet gave its nod to changes including updating the existing provisions for exchange of information to the latest international standards. Besides minimum standards, the Protocol will also bring in changes as per Base Erosion & Profit Shifting (BEPS) Action reports as agreed upon by two sides. Further the protocol will incorporate changes required to implement treaty related minimum standards under the Action reports of BEPS Project, in which India had participated on an equal footing.
[Source: The Economic Times]