Current Affairs June 2011

                                     Tanzania and India signed an agreement for double taxation avoidance.

1. The Indian government signed on the double Taxation Avoidance Agreement (DTAA) with the United Republic of Tanzania. This agreement is meant for the prevention of fiscal evasion related to taxes on income to be payed. The agreement was signed on May 27th 2011 at Dar –es-Salaam. Shri K V Bhagirath, High Commissioner of India and Mr Pereira Ame Silima, Deputy Finance Minister of the Republic of Tanzania both are going to sign on the DTAA agreement on behalf of their respective countries.
2. The DTAA states that all the business profits will be taxable in the state if the activities constitutes for a permanent establishment in the respective state. This agreement will in providing stability of taxes between India and Tanzania. And this will help in increment of mutual economic cooperation between the two countries.