Govt approves amendment to tax pact with Kuwait

Government today approved the protocol amending the agreement between India and Kuwait for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
The decision was approved at the Cabinet meeting chaired by Prime Minister Narendra Modi today.
The protocol provides for internationally-accepted standards for effective exchange of information on tax matters, including bank information and information without domestic tax interest, an official release said.
"It is further provided that the information received from Kuwait in respect of a resident of India can be shared with other law enforcement agencies with authorisation of the competent authority of Kuwait and vice versa," it said.

Post the clearance by the Union Cabinet, there will be amendment in the protocol agreement between India and Kuwait for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.
India and Kuwait had signed the Double Taxation Avoidance Agreement (DTAA) in 2006 for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, through the protocol.
The agreement which came into force in October, 2007 was done with the view to promote economic co-operation between the two countries.