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Economy 1 min read

India Removes MFN Clause from Double Taxation Avoidance Convention with France

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India has removed the Most Favoured Nation (MFN) clause from its Double Taxation Avoidance Convention (DTAC) with France. An MFN clause in a tax treaty can let one partner automatically claim lower tax rates or benefits that India later grants to another country. Removing it gives India clearer control over the tax terms applicable to French investors and avoids disputes over how such benefits should be extended.