India along with 67 other countries signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS), also referred to as the Multilateral Instrument (MLI), in Paris on 7 June. The MLI is an outcome of the BEPS Action Plans devised by the Organization for Economic Cooperation and Development. India has been actively involved in the BEPS project and the drafting of the MLI, which seeks to amend over 3,000 bilateral treaties, modifying their application to the extent necessary to implement BEPS-related measures. The MLI will come into force on the deposit of the fifth instrument of ratification, which is the next step in a multilateral treaty making process after signing.
By Shilpa Mankar Ahluwalia and Himanshu Malhotra, Shardul Amarchand Mangaldas & Co
By Vikrant Kumar, Vasudev Dibbur and Bissheesh Roy, L&L Partners