NEW DELHI: India has ratified the new Double Taxation Avoidance Agreements with SAARC nations taking forward its efforts to track and unearth black money. The revised treaties will come into effect from next fiscal, according to a government notification.
"The central government hereby directs that all the provisions of the said agreement shall be given effect to in the Union of India with effect from 1st day of April, 2011," the official government Gazette notification said. According to the notification, the new agreement will apply to persons who are residents of one or more member states.
However, the notification said SAARC limited multilateral agreement on avoidance of double taxation and mutual administrative assistance in tax matters shall be applicable only in the member states where an adequate direct tax structure is in place. "In case of a member state where such a structure is not in place, this agreement shall become effective from the date on which such a member state introduces a proper direct tax structure and notifies the SAARC secretariat to this effect," the gazette notification said.
India is in the process of negotiating DTAA with 65 countries. This is to broaden the scope of article concerning exchange of information, specifically regarding banking and taxpayers not covered earlier.
Finance minister Pranab Mukherjee had recently unveiled a five pronged strategy to check and curb black money in the country. He said DTAA and Exchange of Taxation Information Agreement are two instruments under which information can be obtained and that the government has already amended pacts with 23 countries to get information from various banks.
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