Why is it in the news?
India and France signed a protocol amending DTAC (1992).
Introduces changes in capital gains, MFN clause and BEPS alignment.
Category: Economy
Important Points:
● Grants full taxing rights on capital gains to resident jurisdiction
● Deletes Most-Favoured-Nation (MFN) clause
● Modifies dividend taxation: 5% (≥10% holding), 15% (others)
● Aligns Fees for Technical Services definition with India-US DTAA
● Expands scope of Permanent Establishment by adding Service PE
● Updates Exchange of Information provisions
● Introduces Assistance in Collection of Taxes
● Incorporates BEPS Multilateral Instrument provisions