The Central Government, last day notified the protocol amending the Double Taxation Avoidance Agreement (DTAA) which aims at widening the scope of Exchange of Information between the two countries in relation to financial and banking transactions.
The protocol broadens the scope of Exchange of Information (‘EOI’) clause by replacing Article 2. It provides that the Competent Authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind.
Further, if the information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purpose.
The provisions are applicable with effect from 6th August 2017.