India, Hong Kong sign limited tax avoidance pact

 While the treaty will extend a similar benefit to Air-India and Indian shipping companies touching Hong Kong, India will actually be a loser from the proposed treaty.

 This is because almost all shipping companies and airlines operating from the Chinese outpost are profitable concerns. As a result, they pay a tax on their operations in India.

 But Air-India has a much lower profit margin and the same is the case with the domestic shipping companies. As a result, their tax liability is negligible in Hong Kong. So transferring their tax liability back to India will not add to the government