India and Switzerland revise DTA

02/09/2010

India and Switzerland have signed a protocol to revise the two countries’ existing DTA. The agreement will introduce new provisions concerning administrative assistance in accordance with OECD standards together with a comprehensive most favoured nation clause. The most favoured nation clause provides that the lowest rate of withholding tax which India has agreed with other OECD countries will also automatically apply for Switzerland in cases concerning dividends, interest, license fees and commissions for technical services.  Additionally, Indian tax authorities could seek information about account holders with Swiss banks, if they present a case with evidence, but the agreement would not allow the fishing of data.