THE Union Cabinet
has given its approval
for amending the Double Taxation Avoidance Convention (DTAC) signed
between India and Turkmenistan in 1997 for the avoidance of double taxation
and for the prevention of fiscal evasion with respect to taxes on income and
on capital, through a Protocol.
The Protocol provides for internationally accepted standards for effective
exchange of information on tax matters including bank information and information
without domestic tax interest. It is further provided that the information
received from Turkmenistan in respect of a resident of India can be shared
with other law enforcement agencies with authorisation of the Competent Authority
of Turkmenistan and vice versa.
The Protocol further provides for 'Limitation of Benefits' Article as an anti-abuse
provision aimed at preventing misuse of the Convention. The provisions of this
Article enable use of the provisions of domestic law and measures concerning
tax avoidance or evasion in the event of misuse of the Convention.
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