DTA agreement with Mexico gets nod

The government has approved a Double Taxation Avoidance Agreement (DTAA) between India and Mexico that will improve the flow of technology, capital and personnel between the two countries, besides providing tax stability and reducing obstacles in facilitating mutual cooperation, Information and Broadcasting Minister PR Dasmunsi said today after a meeting of the Union Cabinet.

India, which has so far signed bilateral treaties for avoidance of double taxation with 71 other countries, will also enter into an agreement with the central American nation for prevention of evasion of taxes on income, the minister said.

"The agreement will stimulate flow of capital between the two nations, and provide tax stability," the government said in a statement.

Meanwhile, the Cabinet Committee on Economic Affairs approved a Rs-1,623.2 crore scheme for establishing data centres across states and Union Territories as a part of the e-governance plan.

The scheme includes capital and operational expenses for a period of five years. The scheme would be implemented in 12 months from the date of approval of individual state data centres based on proposals from the states, it said.

The government has also decided to sign a memorandum of understanding with the French Railways for co-operation in the sector.

The agreement will be signed during French President Nicolas Sarkozy's visit to New Delhi as the chief guest on January 26.