New Delhi, Feb. 2
THE Union Cabinet on Wednesday gave its nod for the proposed SAARC Limited Multilateral Agreement on the avoidance of double taxation and mutual administrative assistance in tax matters.
The agreement would be signed at the 31st session of the Standing Committee, which is to be held in Dhaka on February 6-7, on behalf of the Governments of all the SAARC members.
An official spokesperson said that the agreement would promote mutual administrative assistance and cooperation in tax matters amongst SAARC members. It would also provide tax relief to students and teachers for pursuing their academic interest.
The first meeting of the SAARC members on avoidance of double taxation was held on August 5-7, 1999 at Islamabad.
The responsibility of preparing a draft of the `Avoidance of Double Taxation and Mutual Administrative Assistance in Tax Matters' was entrusted to India.
The draft of the proposed agreement prepared by India has been discussed in the first and second meetings of the SAARC sub-group held on October 26-28, 2004 and at Islamabad on December 6-7, respectively.
The agreement has 17 Articles, 4 schedules and a protocol.