LUXEMBOURG DTAA CLEARED

The government approved the Double Taxation Avoidance Agreement with Luxembourg. The treaty which received the go-ahead from the Union Cabinet is aimed at stimulating the flow of capital, technology and manpower between the two countries. The agreement on ‘avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital’ will provide tax stability and reduce any obstacles in mutual co-operation. India has so far signed and notified such bilateral treaties with 71 other countries.