Union Cabinet Nod for DTAAs

New Delhi Nov 11: The Union Cabinet chaired by Prime Minister Modi has taken crucial decisions yesterday.

# Approval of DTAA between HKSAR and India

The Union cabinet has approved the agreement between India and the Hong Kong Special Administrative Region (HKSAR) of China for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income.

Officials said that "this is expected to augment the flow of investment, technology, and personnel from India to HKSAR and vice versa, prevent double taxation and provide for the exchange of information and the pact will improve transparency in tax matters and will help curb tax evasion and tax avoidance."

# Agreement with Kyrgyz Republic

The cabinet has also given permission to Amend DTAA and prevention of fiscal prevention evasion pact with Kyrgyz Republic.

Officials said that "ammendments would facilitate greater exchange of information to the widest possible extent thereby empowering the Indian government to use the information received for law enforcement purposes."

# JID between India and Colombia

The government also gave its nod for signing the Joint Interpretative Declaration (JID) between India and Colombia regarding the existing Agreement for the Promotion and Protection of Investments between India and Colombia signed on November 10, 2009.

officials said that "with increasing Bilateral Investment Treaty (BIT) disputes, issuance of such statements is likely to have strong persuasive value before arbitration tribunals. Such pro-active approach by partners can foster a more predictable and coherent reading of treaty terms by arbitration tribunals".