1.8.2012 (UNI) India has signed a revised Double Taxation Avoidance
Agreement (DTAA) with Indonesia for the avoidance of double taxation and
for the prevention of fiscal evasion with respect to taxes on income.
The revised DTAA gives taxation rights in respect of capital gains on alienation of shares of a company to the source State.
The agreement further provides for rationalisation of the tax rates on dividend income, royalties and fees for technical services in the source State up to 10 per cent threshold limit.
The revised DTAA further incorporates provisions for effective exchange of information, including banking information and sharing of information without domestic tax interest.
It also provides for assistance in collection of taxes between tax authorities and incorporates Limitation of Benefits and anti-abuse provisions to ensure that the benefits of the Agreement are availed of by the genuine residents.
The revised DTAA will provide tax stability to the residents of India and Indonesia and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Indonesia.
The revised DTAA was signed on July 27, 2012 in the national capital by India's External Affairs Minister S M Krishna and his Indonesian counterpart R M Marty M Natalegawa. UNI
The revised DTAA gives taxation rights in respect of capital gains on alienation of shares of a company to the source State.
The agreement further provides for rationalisation of the tax rates on dividend income, royalties and fees for technical services in the source State up to 10 per cent threshold limit.
The revised DTAA further incorporates provisions for effective exchange of information, including banking information and sharing of information without domestic tax interest.
It also provides for assistance in collection of taxes between tax authorities and incorporates Limitation of Benefits and anti-abuse provisions to ensure that the benefits of the Agreement are availed of by the genuine residents.
The revised DTAA will provide tax stability to the residents of India and Indonesia and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Indonesia.
The revised DTAA was signed on July 27, 2012 in the national capital by India's External Affairs Minister S M Krishna and his Indonesian counterpart R M Marty M Natalegawa. UNI
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