💨 Abstract

The Central Board of Direct Taxes (CBDT) in India has issued a circular to offer guidance on the Principal Purpose Test (PPT) provision under Double Taxation Avoidance Agreements (DTAAs). The circular clarifies that it specifically addresses the PPT provision in Indian DTAAs and is intended to prevent tax treaty abuse by ensuring tax treaties are not used for artificial or contrived arrangements without genuine economic substance.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖