Amendments to the India-Australia DTAA
18 January 2012
|Despite the fierce
cricket rivalry, the amendments will encourage
cooperation between the two countries
India and Australia have signed a new protocol amending
their double taxation avoidance agreement (DTAA) which makes a
number of changes that will benefit multinationals operating in
The removal of the force of attraction rule and the
provision of a threshold for permanent establishment are two
Removal of force of attraction rule
This amendment was somewhat surprising given the Indian
government's reputation as an aggressive tax collector and is
seen as a positive thing for businesses.
Amit Singhania, of Amarchand & Mangaldas, said: "This
rule allows for taxation of indirect profits connected with a
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