DTAC agreement with Japan has approved by Union Cabinet [ Current Affairs ]
For improving the Double Taxation Avoidance Convention (DTAC) Union Cabinet has approved signing and confirmation of a protocol between India and Japan. The main goal of DTAC agreement with japan is to avoid double taxation and the prevention of financial evasion with respect to taxes on income.
- An effective exchange of information and support in collection of taxes between tax authorities of the two countries are included in this protocol.
- Exchange of banking information between tax authorities of these two countries is also included in protocol.
DTAC between both countries will facilitate:
- According to accept international standards exchange of information on tax matters as well as bank information and info without national tax interest.
- With law enforcement agencies, sharing of any information will possible to receive from japan to Indian authority.
- Due to protocol both country can support each other in troubles associated with collection of revenue claims along with exception of interest income from taxation in the source country.
- And regarding this the government or government-owned financial institutions has insured the claim would be made with respect to debt claims.
- DTAC was signed in 1989 by India and Japan with the aim to prevention from double taxation and avoidance of financial evasion through a protocol.
- Published on: December 3, 2015