The Union Cabinet on Thursday approved the signing and ratification of an agreement between India and Seychelles for exchange of information with respect to taxes.
The agreement is aimed to stimulate exchange of information between India and Seychelles for tax purposes, for curbing the tax evasion and avoidance.
It will enable competent authorities of both countries to provide assistance through an exchange of information that is foreseeably relevant to the administration.
Information received under the agreement will be treated as confidential and may be disclosed only to persons or authorities (including courts or administrative bodies) concerned with assessment, collection, enforcement, prosecution or determination of appeals, in relation to taxes covered under the agreement.
It provides a mutual agreement procedure for resolving any differences under the agreement.
The agreement does not have any financial implications. Only in the event of extraordinary costs exceeding USD 500, the Government of India will bear the same, as per Article 9 of the agreement. India has similar provisions in other such tax information exchange agreements.
The Central Government is authorized under Section 90 of the Income Tax Act, 1961 to enter into an agreement with a foreign country or specified territory for exchange of information for the prevention of evasion or avoidance of income-tax chargeable under the Income-Tax Act, 1961.