India to amend double taxation pact with Turkmenistan
In order to ensure smooth exchange of information on issues related to tax evasion and black money, India and Turkmenistan will change their double taxation avoidance agreement signed 18 years ago. On Thursday, the Union Cabinet gave 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,” a government statement said. The protocol provides for internationally accepted standards for effective exchange of information on tax matters including bank information and information without domestic tax interest. As part of the agreement, 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 also has provisions for measures against misuse of the convention. The provisions of ‘Limitation of Benefits’ article of the protocol enable use of the provisions of domestic law and measures concerning tax avoidance or evasion in the event of misuse of the convention.
November 06, 2015 | 5:01pm IST.