Paper Key : IRJ************174
Author: Narendran T V S C,Muhammad Thameem N K,Muhammed Shamal,Srivathsan V,Manas Bagewadi,Aalok Kumar Pandit,Dr Tejaswini S
Date Published: 04 Apr 2025
Abstract
The international trade boom requires Double Taxation Avoidance Agreements (DTAA) to resolve foreign earnings taxation. India has signed DTAA with various nations to remove tax obstacles and create a favorable business environment. This research investigates the effect of DTAA on Indian FDI inflows, investor confidence, and capital investment considering tax structure options. Although studies validate the economic advantages of DTAA, its effectiveness in avoiding tax treaty abuse and Base Erosion and Profit Shifting (BEPS) is less researched. Existing research targets macroeconomic implications, but firm-level tax minimization through DTAA requires focus. Based on statistical models and expert opinions, this research evaluates whether India's DTAA regime attracts investors or enables tax evasion. It also investigates the effect of tax treaty renegotiations after BEPS on sustainable FDI. Voluntary participants will make tax treaties easier by incorporating global best practices into India's framework.