Parliamentary Involvement in Respect of International Tax Treaties in India

Tax treaties have multiplied in number across the world and there have been variances in the ways countries negotiate and implement treaties. A key distinction lies in the extent of domestic legislative involvement, which is thought to enhance treaty negotiating power. This article examines India’s legislative control over tax treaties and compares it with practices in other countries. It develops a framework to evaluate legislative involvement and argues that a recent Indian Supreme Court judgment underscores the importance of legislative oversight in tax treaty implementation. The judgment can be a catalyst for India to make legislative involvement more effective, which may strengthen India’s bargaining power in international tax negotiations.