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The Union Cabinet today gave its approval for the proposed “SAARC Limited Multilateral Agreement for the Avoidance of Double Taxation and Mutual Administrative Assistance in Tax Matters”. The Agreement will promote mutual administrative assistance and cooperation in tax matters amongst Member States of the SAARC. It will also provide tax relief to students and teachers for pursuing their academic interest. The Agreement will be signed at the 31st Session of the Standing Committee scheduled to be held in Dhaka on February 6-7, 2005 on behalf of the Governments of all the SAARC Member States.
The first meeting of the SAARC Member States on Avoidance of Double Taxation was held during August 5-7, 1999 in Islamabad, Pakistan. The responsibility of preparing the Draft of the ‘Avoidance of Double Taxation and Mutual Administration Assistance in Tax Matters’, was entrusted to India. The draft of the proposed agreement prepared by India has been discussed in the first and second meetings of the SAARC sub-group on Avoidance of Double Taxation held at the SAARC Secretariat, Kathmandu during October 26-28, 2004 and in Islamabad during December 6-7, 2004 respectively.
Subsequent to the second meeting of the SAARC sub-group on Avoidance of Double Taxation in Islamabad during December 6-7, 2004, certain amendments have been proposed by India, Bangladesh and Sri Lanka. The Agreement has 17 Articles, 4 Schedules and a Protocol.
DS/HS/HK/LV
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