The government today approved amending the Double Taxation Avoidance Convention (DTAC) signed with Turkmenistan.
India signed the treaty with Turkmenistan in 1997.
The Cabinet approved the amendment to DTAC for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital, through a Protocol, an official release said.
The protocol provides for internationally accepted standards for effective exchange of information on tax matters including bank information and information without domestic tax interest, it said.
The information received from Turkmenistan in respect of a resident of India can be shared with other law enforcement agencies with authorisation of the Competent Authority of Turkmenistan and vice versa, it added.
According to the statement the protocol further provides for 'Limitation of Benefits' article as an anti-abuse provision aimed at preventing misuse of the convention.
The provisions of this article enable use of the provisions of domestic law and measures concerning tax avoidance or evasion in the event of misuse of the convention.
