India and France Amend Double Taxation Avoidance Convention

26 Feb 2026 CW Team

The Protocol grants taxing rights for capital gains from the sale of company shares to the jurisdiction where the company is resident and removes the Most Favoured Nation (MFN) clause from the DTAC. It replaces a single dividend withholding rate of 10 per cent with a split rate of five per cent for shareholders holding at least 10 per cent of capital and 15 per cent for other cases. The amendment clarifies Fees for Technical Services (FTS) by aligning the definition with the India United States Double Taxation Avoidance Agreement and expands the scope of Permanent Establishment (PE) to include Service PE.

The Protocol updates provisions on exchange of information and introduces an article on assistance in the collection of taxes in line with international standards, which should facilitate mutual tax cooperation. It incorporates the applicable provisions of the Base Erosion and Profit Shifting (BEPS) Multilateral Instrument (MLI) that became applicable after both countries signed and ratified the MLI. The changes aim to provide greater clarity and predictability for taxpayers on cross border transactions.

The changes will enter into effect after completion of internal procedures under the laws of both countries and subject to the terms agreed between the two Governments. Officials expect the updated DTAC to provide greater tax certainty, boost the flow of investment, technology and personnel and support bilateral economic ties. The Amending Protocol updates the treaty to present international standards while seeking to balance the interests of both India and France.

During the visit of the President of France to India, the Governments of the Republic of India and the French Republic signed a Protocol amending the India France Double Taxation Avoidance Convention (DTAC) which was originally signed on 29 September 1992. The Protocol was signed by the Chairperson of the Central Board of Direct Taxes (CBDT) for India and by the Ambassador of France to India for France. The update is intended to modernise tax rules and strengthen bilateral economic cooperation. The Protocol grants taxing rights for capital gains from the sale of company shares to the jurisdiction where the company is resident and removes the Most Favoured Nation (MFN) clause from the DTAC. It replaces a single dividend withholding rate of 10 per cent with a split rate of five per cent for shareholders holding at least 10 per cent of capital and 15 per cent for other cases. The amendment clarifies Fees for Technical Services (FTS) by aligning the definition with the India United States Double Taxation Avoidance Agreement and expands the scope of Permanent Establishment (PE) to include Service PE. The Protocol updates provisions on exchange of information and introduces an article on assistance in the collection of taxes in line with international standards, which should facilitate mutual tax cooperation. It incorporates the applicable provisions of the Base Erosion and Profit Shifting (BEPS) Multilateral Instrument (MLI) that became applicable after both countries signed and ratified the MLI. The changes aim to provide greater clarity and predictability for taxpayers on cross border transactions. The changes will enter into effect after completion of internal procedures under the laws of both countries and subject to the terms agreed between the two Governments. Officials expect the updated DTAC to provide greater tax certainty, boost the flow of investment, technology and personnel and support bilateral economic ties. The Amending Protocol updates the treaty to present international standards while seeking to balance the interests of both India and France.

Infrastructure Transport

01 Jun 2026

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Infrastructure Urban

01 Jun 2026

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Infrastructure Urban

01 Jun 2026

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..