CBDT grandfathers treaty benefits with Mauritius, Cyprus, Singapore

The Central Board of Direct Taxes (CBDT) has issued a new guidance note on the Principal Purpose Test (PPT) for claiming tax treaty benefits, which will be applied prospectively. The grandfathering provisions under the India-Cyprus, India-Mauritius, and India-Singapore DTAAs remain unaffected by this new PPT provision and will continue to be governed by the specific provisions in their respective treaties.

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