A United Nations proposal to reshape the scope of bilateral tax treaties will boost India’s taxing rights over multinational companies and ultimately its tax revenue, tax practitioners said.
But success will depend on how many countries agree to translate the change into existing tax treaties. Practitioners remain skeptical that the US — one of India’s largest trading partners — would agree to the proposal.
“The meaning of the proposal is nothing unless the other countries sign new treaties with us,” said T. P. Ostwal, founder of T. P. Ostwal & Associates LLP, a chartered accountancy and professional services firm in …