The Cabinet, headed by Prime Minister Narendra Modi, on Wednesday gave nod for signing of a revised Double Taxation Avoidance Convention (DTAC) with Brazil with an aim to provide tax certainty, among other things, to investors and businesses of both countries.
The existing DTAC between India and Brazil, being very old, was required to be amended to bring it in line with international developments and also to implement the recommendations contained in the G-20-OECD Base Erosion and Profit Shifting Project (BEPS).
"After Cabinet approval, necessary formalities for bringing the protocol into force will be completed," it said.
The revised DTAC will facilitate elimination of double taxation, provide tax certainty to investors and businesses of both countries and augment the flow of investment through lowering of tax rates in source state on interest, royalties and fees for technical services, an official statement said.
Its implementation would be watched and reported by the finance ministry.
The existing DTAC between India and Brazil was signed on April 26, 1988, and was amended through a 'protocol' signed on October 15, 2013, in respect of exchange of information. Through the present 'protocol', the DTAC has been amended on various other aspects.
The Cabinet also approved the Cadre Review of Posts & Telegraphs Building Works Service (P&T BWS), Group 'A'.
"The number of duty posts was fixed at 105. The approval would result in strengthening of the cadre structure both at the headquarters and in the field units of the Department of Telecommunications and the Department of Posts on the basis of functional requirements. This will reduce the existing stagnation of P&T BWS officers," an official release said.
It was also decided that there will be no fresh recruitment into the cadre, and the cadre will be phased out in such a manner that there is no adverse impact on the incumbents, the release added.
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