Industry & Economy
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Taxation
Tax treaties: Talks on with 21 countries
Our Bureau
New Delhi
,
April 22
THE Government has started negotiations with as many as 21 countries for entering into tax treaties. The 21 countries include Kuwait, Saudi Arabia, Bahrain, Nigeria, Chile, Mexico, Latvia, Lithuania, Albania, Venezuela, Botswana, Algeria and Uruguay, Finance Ministry officials said.
Currently, there are no bilateral tax treaties between India and these 21 countries. The Government has so far entered into tax treaties with 69 countries. The tax treaties are entered into by the Union Government with a foreign government by virtue of the power vested under Section 90 of the Income-Tax Act.
These treaties are entered into for granting relief in respect of income on which taxes have been paid both in India and the other country, or to avoid double taxation on income chargeable under the Indian Act and the foreign countries' Act and to promote mutual economic relations, trade and investment. These agreements also provide for exchange of information for prevention of evasion or avoidance of income tax and also for recovery of income tax.
Meanwhile, the Government has already initiated talks for re-negotiation of the existing tax treaty with Japan. The existing treaty with Japan was notified on March 1, 1990.
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