The Finance Minister, Arun Jaitley, on 7 June 2017 in Paris on behalf of India, signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting.
About 70 countries at all levels of development have signed this Multilateral Instrument (MLI) at the OECD Centre in the presence of Secretary-General OECD at the same time. A number of jurisdictions have also expressed their intention to sign the MLI as soon as possible and other jurisdictions are also actively working towards participation in the multilateral instrument.
The Central Bank of Direct Taxation (CBDT) said in a press release that this convention will change India’s contracts to curb the loss of income through contract abuse and BEPS strategies by ensuring that profits are taxed when tangible economic activities that generate profits, and where the value is created.
