Switzerland Revokes MFN Status In Tax Treaty With India Following Nestle Verdict
ABP NewsSwitzerland has taken unilateral action following the Supreme Court of India's ruling in the Nestle case, revoking India's "Most Favoured Nation" status under the Double Taxation Avoidance Agreement. The court ruled that the MFN clause between two countries does not automatically apply when a nation joins the Organisation for Economic Co-operation and Development, mainly when India already had a tax treaty with the country before its OECD membership. Switzerland assumed that with Colombia and Lithuania joining the OECD, the 5 per cent dividend tax rate would apply to the India-Switzerland tax treaty under the MFN clause, replacing the previously agreed-upon rate of 10 per cent. Instead, the terms of the prior tax treaty take precedence unless the MFN clause is explicitly mentioned in a "notification" as per Section 90 of the Income Tax Act.
History of this topic
Mint Explainer: Why Switzerland withdrew MFN status in its tax treaty with India
Live Mint
Switzerland withdraws India's 'most favoured nation' status: 2 key impacts
India Today)
Why has Switzerland suspended 'Most-Favoured Nation' status to India?
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Switzerland India trade tax MFN: What does Switzerland’s halt of most favoured nation for India mean? EXPLAINED
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Switzerland suspends ‘most favoured nation’ status to India, cites SC's Nestle case ruling
Hindustan Times
Switzerland cancels 'most favoured nation' status to India over Nestle ruling
India Today
Switzerland Revokes India’s MFN Status
Deccan Chronicle
Switzerland withdraws MFN status from India
The Hindu
Switzerland suspends 'Most Favoured Nation' status to India over Nestle verdict
India TV News
Switzerland withdraws tax MFN status on Indian companies over SC ruling on Nestle
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