India Signed Double Taxation Avoidance Agreement with Lithuania

The Government of India on 26 July 2011 signed an Agreement and Protocol for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital (DTAA) with Government of Lithuania in New Delhi. Lithuania is the first Baltic country with which DTAA has been signed by India.     

The Agreement and the Protocol were signed by Prakash Chandra, Chairman, Central Board of Direct Taxes, on behalf of the Government of India and Petras Simeliunas, Ambassador, Republic of Lithuania to India, on behalf of the Government of Lithuania.

The Agreement further incorporates provisions for effective exchange of information between tax authorities of the two countries in line with latest international standard, including exchange of banking information and supplying of information without recourse to domestic interest. Further, the Agreement provides for sharing of information to other agencies with the consent of supplying state.

The Agreement also has an article on assistance in collection of taxes. This article also includes provision for taking measures of conservancy. The Agreement incorporates anti-abuse (limitation of benefits) provisions to ensure that the benefits of the Agreement are availed of by the genuine residents of the two countries.

The Agreement will provide tax stability to the residents of India and Lithuania and will facilitate mutual economic cooperation between the two countries. It will also stimulate the flow of investment, technology and services between India and Lithuania.