The double taxation convention is a convention signed by two countries. The agreement is signed to make a country an attractive tourist destination and allow NGOs to get rid of the multiple payment of taxes. The DTAA does not mean that NRA can avoid taxes altogether, but it does mean that NRA can avoid higher taxes in both countries. DTAA allows an NRA to reduce its tax impact on income generated in India. DTAA also reduces cases of tax evasion. One of the new features of the deal is that it provides for a corresponding transfer pricing adjustment in the other country, said Amit Maheshwari, partner, Ashok Maheshwary &Associates, an audit firm. This is provided for in the new double taxation agreement between India and Malaysia (DBAA), which entered into force on 26 December. In addition to a mechanism for the exchange of banking information for the tax administration, the new agreement also contains a limitation clause on benefits, a provision to combat abuse. The new agreement, signed in May, will enter into force in India from 1 April.
In the case of Malaysia, it entered into force on 1 January. Agreement between the Government of the Russian Federation and the Government of the Republic of Albania for the avoidance of double taxation of taxes on income and capital The new Convention also introduced, in accordance with international practice, a new article on the taxation of capital gains on the sale of property. Date of entry into force: 1 January 2004 (Russia); 1 July 2004 (Australia) Date of entry into force: 1 September 2000 (South Africa); 1 January 2001 (Russia). SUMMARY TEXT OF THE MULTILATERAL AGREEMENT ON THE IMPLEMENTATION OF FISCAL MEASURES TO AVOID PROFIT REDUCTION AND PROFIT SHIFTING (MLI) AND THE AGREEMENT BETWEEN THE GOVERNMENT. . The DBAA, signed by India with different countries, sets a certain tax rate on the income paid to the inhabitants of that country. This means that if FDI in India gets income, the TDS corresponds to the rates set in the double taxation treaty with that country. . Previously, this facility did not exist, which led to double taxation. .
If income from these sources is taxable in the country of residence of NRAs, they can avoid paying taxes in India by taking advantage of the benefits of the DBAA. . THE INIs can avoid the payment of double taxation under the double taxation convention. . On April 1, dividends paid by Indian companies to Malaysian investors or companies will attract a 5 percent lower withholding tax compared to 10 percent earlier. . . .