NEW
DELHI, FEB 24, 2016: THE
Union Cabinet has given
its approval for signing of an Agreement between India and Maldives for the
avoidance of double taxation of income from international air transport.
The Agreement provides for relief from double taxation for airline enterprises
of India and Maldives by way of exemption of income derived by the enterprise
of India from the operation of aircraft in international traffic, from Maldivian
tax and vice-versa. Under the agreement, profits from the operation of aircraft
in international traffic will be taxed in one country alone.Accordingly the
taxing right is conferred upon the country to which the enterprise belongs.
The Agreement will provide tax certainty for airline enterprises of India and
Maldives.
The Agreement further provides for Mutual Agreement Procedure for resolving
any difficulties or doubts arising as to the interpretation or application
of the Agreement.
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