• India and Cyprus signed the revised tax treaty along with the protocol that paves the way to tax capital gains locally on November 18, 2016.
• The protocol is expected to come into effect in India, in respect of income derived in fiscal years beginning on or after April 1, 2017.
• Amended tax treaty also expands the scope of 'permanent establishment' and reduces tax rate on royalty from 15% to 10% to align with India's 'domestic tax rate.
• Amended tax treaty also provides for assistance in collection of taxes and provides for effective exchange of information on tax matters including bank information.
• The protocol is expected to come into effect in India, in respect of income derived in fiscal years beginning on or after April 1, 2017.
• Amended tax treaty also expands the scope of 'permanent establishment' and reduces tax rate on royalty from 15% to 10% to align with India's 'domestic tax rate.
• Amended tax treaty also provides for assistance in collection of taxes and provides for effective exchange of information on tax matters including bank information.
subscribe now latest pattern online Test series
