Current Affairs – December, 2016

Latest Current Affairs December, 2016 with Current Affairs, news summary on current events of National and International importance of December, 2016 for Banking, SSC, CLAT, UPSC, State PCS, IBPS, Railways and other Competitive Examinations.

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India and Singapore ink 3rd Protocol for amending DTAA

India and Singapore have signed a Third Protocol to amend DTAA (Double Taxation Avoidance Agreement) for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.

It was signed in line with India’s treaty policy to prevent double non-taxation, curb revenue loss and check the menace of black money through automatic exchange of information.

Key Facts
  • The Third Protocol amends DTAA to provide for source based taxation of capital gains arising on transfer of shares in a company.
  • It will come into effect from April 1, 2017 to provide for source based taxation of capital gains arising on transfer of shares in a company.
  • It also inserts provisions to facilitate relieving of economic double taxation in transfer pricing cases. It also enables application of domestic law and measures concerning prevention of tax avoidance or tax evasion.
  • This is a taxpayer friendly measure and is in line with India’s commitments under Base Erosion and Profit Shifting (BEPS) Action Plan to meet minimum standard of providing MAP access in transfer pricing cases.
  • Two year transition period from April 1, 2017 to March 31, 2019 has been provided during which capital gains on shares will be taxed in source country at half of normal tax rate.

CSL completes delivery of 20 FPVs to India Coast Guard

The Cochin Shipyard Limited (CSL) has delivered ICGS AYUSH, the 20th Fast Patrol Vessel (FPV) to the Indian Coast Guard.  With this, CSL has completed construction of 20 FPVs for the Indian Coast Guard.

ICGS Ayush will be operated from the Coast Guard Station at Krishnapatanam. It is last in the series (CSL Yard No BY 520) and was delivered three months ahead of schedule.

Background

Cochin Shipyard Limited was awarded the contract of constructing 20 FPVs in October 2010.  CSL had delivered the first vessel in September 2013 and subsequently delivered vessels at about two months interval. CSL started delivering vessels ahead of schedule from the 13th vessel onwards. These vessels are 50 metre length and 7.6 metre beam. They are small in size compared to the large vessels that CSL had been building.

Fast Patrol Vessels (FPVs)

The FPVs will help to secure Indian waters by patrolling within Exclusive Economic Zone (EEZ), coastal patrol. They will be used to carry out anti-smuggling, anti-piracy, search and rescue operations and for fisheries protection and monitoring. They will also play a secondary role of providing a communication link and escort coastal convoys in times of hostilities and war.

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