New Limitation of Benefits in amended Double Taxation Agreement between the UK and India

The Protocol to the Double Taxation Agreement between the UK and India, signed in London on 30 October 2012, entered into force on 27 December 2013.

The provisions of this Protocol shall have effect:

(a) in both States in the case of taxes withheld at source, in respect of amounts paid on or after 27 December 2013;

(b) in India, in respect of taxes levied for fiscal years beginning on or after 27 December 2013;

(c) in the United Kingdom:

1. in respect of income tax and capital gains tax, for any year of assessment beginning on or after 6th April 2014;
2. in respect of corporation tax, for any financial year beginning on or after 1st April 2014;
3. in respect of petroleum revenue tax, for any chargeable period beginning on or after 1st January 2014.

ARTICLE 28C

Limitation of Benefits

1. Benefits of this Convention shall not be available to a resident of a Contracting State, or with respect to any transaction undertaken by such a resident, if the main purpose or one of the main purposes of the creation or existence of such a resident or of the transaction undertaken by him, was to obtain benefits under this Convention.

2. Where by reason of this Article a resident of a Contracting State is denied the benefits of this Convention in the other Contracting State, the competent authority of that other Contracting State shall notify the competent authority of the first-mentioned Contracting State.