The union cabinet on Thursday gave its approval for amending a double taxation avoidance pact signed with the central Asian country of Turkmenistan in 1997 through a protocol.
"The union cabinet on Thursday gave its approval for amending the Double Taxation Avoidance Convention (DTAC) signed between India and Turkmenistan in 1997 for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital," said an official release.
It said the protocol provides for internationally accepted standards for effective exchange of information on tax matters including bank information, and will also provide that the information received from Turkmenistan in respect of a resident of India can be shared with other law enforcement agencies with authorisation of a competent authority of Turkmenistan and vice versa.
The protocol further provides for 'Limitation of Benefits' article as an anti-abuse provision aimed at preventing misuse of the convention.