New Delhi: The Government of India has signed double taxation avoidance agreement (DTAA) and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital with Government of Albania, as per the Ministry of Finance in a statement. The agreement was signed by Dr Sudha Sharma, Chairperson, Central Board of Direct Taxes (CBDT) and Mr Fatos Kerciku, the Albanian Ambassdor.
The agreement aims to provide tax stability to the residents of India and Albania and will facilitate mutual economic cooperation between the two countries. It will also stimulate the flow of investment, technology and services between India and Albania.
DTAA incorporates provisions for effective exchange of information between tax authorities of the two countries in line with latest international standards, including exchange of banking information and supply of information without recourse to domestic interest, it added.
The DTAA provides that business profits will be taxable in the source state if the activities of an enterprise constitute a Permanent Establishment (PE) in the source state. The agreement also provides for fixed place PE, building site, construction & installation PE, service PE and agency PE, besides an Article on Assistance in Collection of Taxes. This article also includes provision for taking measure of conservancy, highlighted the statement.
Moreover, it incorporates anti-abuse (limitation of benefits) provisions to ensure that the benefits of the agreement are availed of by the genuine residents of the two countries, it added.
Wednesday, 10 July 2013
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