Double taxation avoidance pact protocol has been signed by India and Japan [ Current Affairs ]
With the aim of modifying the existing convention for avoidance of double taxation and prevention of fiscal evasion with respect to income taxes India and Japan have signed a Protocol. In 1989, the existing Agreement for avoidance of double taxation and tax evasion was signed between both countries.
- The protocol was signed by Revenue Secretary Hasmukh Adhia from India and Kenji Hiramatsu Ambassador of Japan on behalf of Japan.
- For effective exchange of information on tax matters this protocol provides internationally accepted standards.
- This agreement contains sharing of bank information and information without domestic tax interest.
- This Protocol has Enables both countries to share and receive information from Japan of Indian resident with other law enforcement agencies with authorization of the competent authority and vice versa.
- According to this Protocol both countries shall assist each other in the collection of revenue claims.
- In additional it provides for exception of interest income from taxation in the source country.
- Under this exception the Government or Government owned financial institutions has respect debt-claims
- Published on: December 14, 2015