The Union Cabinet chaired by the Prime Minister Narendra Modi on 20 August 2015 gave its approval for the signing of the revised Air Services Agreement (ASA) and exchange of information with respect to taxes between India and Seychelles.
Revised Air Services Agreement (ASA)
The ASA will modernize and update the existing ASA signed on 30 October 1978, and signifies an important landmark in the civil aviation relations between India and Seychelles. Further, it has the potential to spur greater trade, investment, tourism and cultural exchanges between the two countries.
As a result of this agreement, the number of flights between India and Seychelles has been increased from three per week to seven per week.
Exchange of information with respect to taxes between India and Seychelles
• It will enable the Competent Authorities of India and Seychelles to provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of two countries concerning taxes covered by this agreement.
• Information received under the agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts or administrative bodies) concerned with assessment, collection, enforcement, prosecution or determination of appeals, in relation to taxes covered under the agreement.
• Information may be disclosed to any other person or entity or authority or jurisdiction with the prior written consent of the country sending the information.
• The agreement also provides for a Mutual Agreement Procedure for resolving any difference or for agreeing on procedures under the agreement.
• The agreement will enter into force on the date of notification of completion of procedures required by the respective laws of the two countries, for entry into force of the agreement.
As such, the agreement does not have any financial implications. Only in the event of extraordinary costs exceeding 500 US Dollar, the Government of India will bear the same, as per Article 9 of the agreement. India has similar provisions in other such tax information exchange agreements.
India has signed similar bilateral agreements for Exchange of Tax Information with Argentina, Bahamas, Bahrain, Belize, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guernsey, Isle of Man, Jersey, Liberia, Liechtenstein, Macao, Monaco and San Marino.
Now get latest Current Affairs on mobile, Download # 1 Current Affairs App
When: 20 August 2015