Sitting amid the blackened remains of his home, 32-year-old Nikesh Gawali carefully broke open a half-melted plastic box with a screwdriver. His hands shook slightly, not out of fear, but out of hope. “I’m trying to find my daughter Aarti’s gold earrings,” he said quietly, still focused on the box. “She’s just five. I got them made recently after months of labour work.” The plastic box, warped and blackened by heat, was one of the few things left from his two-room house on the outskirts of Dhamangaon village . All around him lay ash, broken tin sheets and charred wooden beams. The walls had cracked under the heat and the front room’s tin roof had caved in completely. What remained was a blackened debris all around - almost nothing to suggest a home once stood there. Nikesh earns his living as an agricultural labourer, like many in the village. Work is uncertain and depends on the season. Those earrings weren’t just jewellery - they were a small dream, a reward for his hard work,...
India and the Republic of Fiji Sign Double Taxation Avoidance Agreement (DTAA) for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income
The Government of the Republic of India signed a Double Taxation Avoidance Agreement (DTAA) with the Government of Republic of Fiji for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income. The Agreement was signed here today by Shri P. Chidambaram, Union Minister of Finance on behalf of the Government of India and by Mr. Aiyaz Sayed-Khaiyum, Attorney General and Minister of Justice, Anti-Corruption, Public Enterprises, Communications, Civil Aviation, Tourism, Industry and Trade, on behalf of the Government of Republic of Fiji.
Speaking on the occasion, the Finance Minister Shri P. Chidambaram said that the need for the DTAA between the two countries was felt and negotiations were completed in 2011. He said that the Agreement will provide tax stability to the residents of India and Fiji and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Fiji. The Finance Minister further said that the Agreement incorporates provisions for an effective exchange of information and assistance in collection of taxes between tax authorities of the two countries including exchange of banking information.
The DTAA provides that business profits will be taxable in the source State if the activities of an enterprise constitute a permanent establishment in the source state. Profits derived by an enterprise from the operation of aircraft in international traffic shall be taxable in the country of place of effective management of the enterprise. Dividends, interest, royalty income and fees for technical or professional services will be taxed both in the country of residence and in the country of source. However, the maximum rate of tax to be charged in the country of source will not exceed the prescribed limit for such dividends, interest, royalties and fees for technical services. Capital gains from the sale of shares will be taxable in the country of source. The Agreement also incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of only by the residents of the two countries and to prevent any abuse of treaty.
Speaking on the occasion, the Finance Minister Shri P. Chidambaram said that the need for the DTAA between the two countries was felt and negotiations were completed in 2011. He said that the Agreement will provide tax stability to the residents of India and Fiji and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Fiji. The Finance Minister further said that the Agreement incorporates provisions for an effective exchange of information and assistance in collection of taxes between tax authorities of the two countries including exchange of banking information.
The DTAA provides that business profits will be taxable in the source State if the activities of an enterprise constitute a permanent establishment in the source state. Profits derived by an enterprise from the operation of aircraft in international traffic shall be taxable in the country of place of effective management of the enterprise. Dividends, interest, royalty income and fees for technical or professional services will be taxed both in the country of residence and in the country of source. However, the maximum rate of tax to be charged in the country of source will not exceed the prescribed limit for such dividends, interest, royalties and fees for technical services. Capital gains from the sale of shares will be taxable in the country of source. The Agreement also incorporates anti-abuse provisions to ensure that the benefits of the Agreement are availed of only by the residents of the two countries and to prevent any abuse of treaty.
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