Tax alert: Apex Court interprets MFN clause in certain tax treaties has been saved
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Tax alert: Apex Court interprets MFN clause in certain tax treaties
20 October 2023
The Supreme Court of India (SC) examined the most favoured nation clause of the India-Netherlands, India-France, and India-Switzerland tax treaties, and held that a separate notification is required under section 90(1) of the Income-tax Act, 1961 to give effect to a tax treaty or to its Protocol changing terms and
conditions that alters existing provisions of the law. Further, the relevant date for another state to be a member of OECD would the date of entering into tax treaty with India, and not at a later date.
