Judgment of Supreme Court on interpretation of DTAA in Nestle SA
Lakshmikumaran & Sridharan Attorneys is organising a webinar on Judgment of Supreme Court on interpretation of DTAA in Nestle SA
Date & Time
27
Oct 2023 | 4:00 PM
Double Taxation Avoidance Agreement (DTAAs) are essential to avoid multiple level of taxation on the same income, as well as to provide certain degree of certainty to non-resident tax payers. DTAAs entered into by India with certain developed economies, in addition to providing tax concessions, contain a Most Favoured Nation (MFN) clause, which enable the residents of such countries to enjoy any additional benefit extended to any third country.
Such MFN clauses have been existing in treaties entered into by India, for more than 40 years. Recently, disputes arose on the date from which the benefits under the MFN clause can be claimed by the non-resident (residents of the first state). The Supreme Court, in its judgment in Nestle SA [Civil Appeal No 1420 of 2023, decision dated 19 October 2023] has clarified that the MFN clause cannot be brought into operation by the Taxpayers unless a notification is issue by the Central Government extending the operation of the beneficial treatment to residents of the first State.
Lakshmikumaran & Sridharan Attorneys (LKS) is organizing a webinar on 27 October 2023 (Friday) from 4:00 PM to 5:30 PM, for an in-depth understanding of the judgment and its effect.
The webinar would cover:
- Basic principles relating to entering into DTAA by Central Government (including the date of DTAA becoming effective)
- Meaning of Protocol to a DTAA, its effect, and the date of the protocol becoming effective
- Meaning of Most Favored Nation (MFN) clause
- The interpretation of Supreme Court in Nestle SA
- Consequences of the judgment on past and future transactions
Speakers:
- Sridharan – Sr. Advocate, Bombay High Court and Co-founder, LKS
- Sriram – Partner, LKS
- Dinesh Kukreja – Principal Associate, LKS
