On 27 December 2013 the protocol to the UK–India tax treaty entered into force. As a result of this protocol, several provisions of the treaty are altered, e.g. the recognition of partnerships for the application of the treaty and the dividend withholding tax rates. Furthermore, a limitation of benefits article has been introduced. Finally, the provisions on enforcement of the treaty and the exchange of information have been strengthened.
The protocol to the UK–India tax treaty applies to:
- the rates of taxes withheld by the UK or India on dividends paid on or after 27 December 2013
- all other taxes levied in India as of the first fiscal year beginning on or after 27 December 2013
- the UK petroleum revenue tax for any taxable period beginning on or after 1 January 2014
- the UK corporation tax for any financial year beginning on or after 1 April 2014
- the UK income tax and capital gains tax for any assessable year starting on or after 6 April 2014