Tax Treaty Signed With Turkmenistan

India and Turkmenistan have signed an agreement on avoidance of double taxation with a view to providing a fresh impetus to the flow of investment, technology, trade and services between the two countries.

The agreement covers income tax (including any surcharge thereon) in the case of India and provides for lower rates of taxation vis-a-vis the domestic rates in India in the case of dividends, interest, royalties and fees for technical services.

The two countries have also signed separate protocols on cooperation in the field of culture, arts, education, mass media and sports, health and medicine.

Two separate memoranda of understanding were signed on cooperation in environment protection and forestry and on the celebration of the 500th anniversary of the great Oriental tutor, Behram Khan.

 

Turkmenistan is keen to extend a gas pipeline, in which American major Unocal is the predominant shareholder, to India. The pipeline is currently supposed to run from Turkmenistan to Karachi, in Pakistan, via Afghanistan.

We dont have any problems if the pipeline is extended to India, said the Turkmen minister for foreign economic relations, Mered Orazov.

Orazov, accompanying President Saparmurad Niyazov on a two-day visit to India, explained that his country was willing to cooperate with Indias petroleum industry in every way possible.

Analysts point out that Washingtons long-term interest in stability in this region has acquired an edge because of its keenness to see the pipeline built. The importance of the gas increases when Turkmenistan and the other energy-rich states of Central Asia begin to be seen as alternatives to the current American dependence on Gulf oil.

Sources in the ministry of external affairs confirmed New Delhis interest in exploiting discovered sites in Turkmenistan, for which Indian companies like ONGC Videsh could either provide consultancy services or participate in ventures that already have third-country participation.