WHILE answering a question in the Lok Sabha, the MoS(R), Mr S
S Palanimanickam, has stated that India has signed 88 Double Taxation Avoidance
Agreements (DTAAs) out of which 85 have entered into force, with various
countries including Sri Lanka and South Korea.
The
DTAAs provide for allocation of taxation rights to source State and residence
State in respect of business profits including that of a permanent
establishment, operation of ships or aircraft in international traffic,
dividends, interest, royalty, capital gains etc. Further, DTAAs have provisions
for exchange of information for tax purposes.
The
DTAAs facilitate mutual economic cooperation and provide tax certainty to the
resident tax payers of both the countries. Further, the DTAAs aim to avoid the
burden of double taxation on the income of residents of the two treaty countries
and also simulate flow of investment, technology and services between them.
|
