India has amended its Double Taxation Avoidance Agreement (DTAA) with Sri Lanka by introducing the Principal Purpose Test (PPT), an anti-avoidance rule from the OECD BEPS framework. This empowers tax authorities to deny treaty benefits to arrangements lacking genuine commercial substance, effective from April 1, 2027.
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- ›Amended Protocol In Force: June 19, 2026
- ›PPT Applicability in India: Income from April 1, 2027
- ›Target this Data: Amended Protocol in force from June 19, 2026; Applicable in India from April 1, 2027.
- ›Target this Nodal Body: Central Board of Direct Taxes (CBDT) under Ministry of Finance.
- ›Target this Legal Point: Principal Purpose Test (PPT) inserted in DTAA with Sri Lanka under OECD MLI framework.
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