India and the United Kingdom on Tuesday signed a protocol amending the 1993 bilateral convention on avoidance of double taxation and prevention of fiscal evasion related to taxes on income and capital gains.
The protocol, signed by India’s High Commissioner Jaimini Bhagwati and David Gauke, Exchequer Secretary to the U.K. Treasury, streamlines the provisions related to partnership and taxation of dividends in both the countries.
The Indian High Commission said in a statement here that the amended protocol would provide tax stability to the residents of the two countries, and facilitate mutual economic cooperation besides stimulating flow of investment, technology and services between the two countries.
“The protocol incorporates in the convention, provisions for effective exchange of information between the tax authorities of the two countries in line with latest international standards, including exchange of banking information and supplying of information irrespective of domestic interest. It now also provides for sharing of information to other agencies with the consent of the supplying state,’’ the statement added.
