India and Jordan ink the revised Economic and Trade Cooperation Agreement
The Dollar Business Bureau India and Jordan discussed ways of increasing bilateral trade and deepening their engagements for greater cooperation in investment sector at the 10TH India-Jordan Trade and Economic Joint Committee (TEJC) Meeting on Wednesday. During the TEJC meeting, the two sides also reaffirmed their mutual interest and discussed the roadmap for cooperation in various fields such as Fertilizer Sector, Customs, Double Taxation Avoidance Agreement, Visa and Consular issues, Health and Pharmaceuticals, Micro, Small and Medium Enterprises, Maritime Transport, Rail Transport, and Air Transport, Renewable Energy, Energy Efficiency, and Smart Grid development, Information Technology, Higher Education and Vocational Training, Agriculture sector etc. The government press release said, that the Indian side represented by the Commerce and Industries Minister, Nirmala Sitharaman and Yarub ...
India, Switzerland sign joint declaration for sharing black money information
The Dollar Business Bureau India and Switzerland inked the ‘Joint Declaration’ for implementation of Automatic Exchange of Information (AEOI) on November 22. This joint declaration which came after four years of negotiations is intended to introduce automatic exchange of financial account information between the countries on a reciprocal basis from 2018. India first ratified Multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAC) in June 2012 and then also signed the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information (MCAA) on June 3, 2015. “The Joint Declaration is subject to MAC being in force in each jurisdiction, signing of MCAA by both jurisdictions, notification of each other under section 7(1)(f) of the MCAA and adequate confidentiality and data safeguards ...
India, Cyprus sign revised DTAA to ease tax collection
The Dollar Business Bureau India and Cyprus have signed a revised agreement for Avoidance of Double Taxation and the Prevention of Fiscal evasion (DTAA) with regards to taxes on income, together with its Protocol. The agreement was signed on Friday in Nicosia and will replace the prevailing DTAA which was signed between the two countries on June 13, 1994. On behalf of India, Ravi Bangar, High Commissioner of India to Cyprus and on behalf of Cyprus, Harris Georgiades, the Minister of Finance, have signed the protocol. “New DTAA provides for source based taxation of capital gains arising from alienation of shares, instead of residence based taxation provided under the existing DTAA. However, a grandfathering clause has been provided for investments made prior to 1st April, 2017, in respect ...
New India-Korea DTAA to provide tax certainty
The Dollar Business Bureau The revised DTAA will provide certainty in tax to the residents of both India and Korea. It aims to avoid the double taxation burden for taxpayers of both the countries in order to promote and thereby encourage flow of investment, services and technology between the two countries. The provisions of the new Double Taxation Avoidance Agreement (DTAA) between India and Korea will have effect in the former country in respect of income resulting in the financial years starting on or after April 1, 2017. “Provisions of the new DTAA will have effect in India in respect of income derived in fiscal years beginning on or after 1st April, 2017,” said a release by Finance Ministry on Wednesday. For the avoidance ...
India and Cyprus complete negotiations on DTAA
The Dollar Business Bureau India and Cyprus had signed a DTAA (double taxation avoidance agreements) in 1994. Since then the little island nation has become one of India's seventh largest source of FDI into the country accounting for Rs 42,680.76 crore between 2000 and 2016. During fiscal 2015-16, FDI inflows from Cyprus aggregated around Rs 3,317 crore making Cyprus the 8th largest FDI contributing-country to India. However in November 2013, a fallout between the two countries regarding non-disclosure of tax-related information led India to place Cyprus under the 'Notified Jurisdictional Area' simply put ,blacklisting it This meant a higher withholding of tax in India for Cypriot resident investors of atleast 30% against the more beneficial rates of 10% as prescribed in the India-Cyprus tax ...
Govt to amend law to exempt foreign firms from MAT
Source: PIB, Government of India After due consideration of the various aspects of the matter, the government of India has decided that with effect from 01.04.2001, the provisions of Section 115JB shall not be applicable to a foreign company if — The foreign company is a resident of a country having DTAA (Double Taxation Avoidance Agreement) with India and such foreign company does not have a permanent establishment within the definition of the term in the relevant DTAA, or The foreign company is a resident of a country which does not have a DTAA with India and such foreign company is not required to seek registration under Section 592 of the Companies Act 1956 or Section 380 of the Companies Act 2013. An appropriate amendment ...
India, Germany agree to continue sharing tax-related info
Source: PIB, Government of India A high level delegation led by Revenue Secretary Shri Shaktikanta Das had a meeting with the State Secretary Johannes Geismann and other senior officers of the Federal Ministry of Finance, Germany in Berlin on August, 17. During the meeting, issues relating to exchange of tax related information, BEPS Project, DTAA negotiations etc. were discussed. Three important outcomes of the visit of the delegation as agreed between the two sides are as follows: It was agreed that India and Germany will continue to exchange tax related information spontaneously on the basis of the existing agreements. It was also agreed to explore other possibilities of enhancing exchange of information. As signatories to the Multilateral Competent Authority Agreement regarding automatic ...
CBDT to expeditiously process MAT exemption claims of FIIs
Source: PTI Government on Friday said the tax department will expeditiously process the cases where FIIs have claimed exemption from minimum alternate tax (MAT) as a benefit under the bilateral tax treaties. "The CBDT (Central Board of Direct Taxes) has directed its officers to expeditiously process the cases where the Foreign Institutional Investors (FIIs) have claimed treaty benefits under the Double taxation Avoidance Agreements (DTAA)," Minister of State for Finance Jayant Sinha said. The Income Tax Department has sent notices in 68 cases to FIIs for payment of dues totalling Rs 602.83 crore towards MAT. In a written reply to a question in the Lok Sabha, Sinha said the CBDT has directed that issuance of fresh notices for reopening of cases ...
