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December 2008

Limitation of Benefits Articles — Concept and its Application in Indian Tax Treaties – Part – 2

By Mayur B. Nayak, Tarunkumar G. Singhal, Anil D. Doshi, Chartered Accountants
Reading Time 1 mins
Conclusion:

From the above, it is clearly evident that the significance of articles relating to Limitation of Benefits clause cannot be undermined. All concerned parties would need to pay specific attention to LOB clauses in India’s Tax treaties. India is increasingly including Limitation of Benefits clause in the new treaties and in some cases including the same in the existing treaties by renegotiating existing treaties through the protocols as in the cases of Singapore and UAE. A taxpayer would be well advised to look for and examine relevant LOB clauses very minutely before taking any decisions ‘in relation to the relevant DTAAs.

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