CURRENT AFFAIRS

Detailed explanation-1: -The OECD/G20 Inclusive Framework on BEPS brings together over 135 countries and jurisdictions to collaborate on the implementation of the BEPS Package.

Detailed explanation-2: -Created in 1999, the G-20 comprises the G-8 countries (Canada, France, Germany, Italy, Japan, Russia, the United Kingdom and the United States) plus the European Union, Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Saudi Arabia, South Africa, South Korea and Turkey.

Detailed explanation-3: -India has ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ("Multilateral Instrument” or “MLI") - outcome of the OECD/G20 Project to tackle BEPS.

Detailed explanation-4: -The DST aims to ensure that non-resident digital service providers pay their fair share of tax on revenues that they generate in the Indian digital market. The tax becomes even more relevant during the pandemic when these tech giants have boomed and increased their business through big markets like India.