India-Kuwait Current Affairs
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The Central Board of Direct Taxes (CBDT) has notified protocol to amend existing Double Taxation Avoidance Agreement (DTAA) between India and Kuwait. The DTAA between both countries was signed in June 2006 for the avoidance of double taxation and for prevention of fiscal evasion with respect to taxes on income.
The said protocol amends existing DTAA was entered into force in March 2018. It updates the provisions in DTAA for exchange of information as per international standards. Further, it enables sharing of information received from Kuwait for tax purposes with other law enforcement agencies with authorisation of competent authority of Kuwait and vice versa.
Double Taxation Avoidance Agreement (DTAA)
DTAA is a tax treaty signed between countries (or any two/multiple countries) so that taxpayers do not pay double taxes on their income earned from source country as well as their residence country. So far, India has signed double tax avoidance treaties with more than 80 countries around the world.
The need for DTAA arises out of imbalance in tax collection on global income of individuals. person aims to do business in foreign country, he may end up paying income taxes in both countries i.e. in the country where income is earned and country where individual holds his citizenship or residence. DTAA helps to taxpayers to do away issues of paying double taxes.
Benefits of DTAA
Tax payers do not have to pay double taxes on the same income. It has lower withholding tax (Tax Deduction at Source or TDS). It provides tax credits, certain exemption from taxes. It also minimises opportunity for tax evasion for tax payers in either or both of countries between which the bilateral and multilateral DTAA agreement have been signed.
The Union Cabinet has apprised of the Memorandum of Understanding (MoU) between Indian Space Research Organization (ISRO) and Kuwait Institute of Scientific Research (KISR) on cooperation in the exploration of outer space and use of outer space technology for peaceful purposes.
This MoU will enable cooperation between both countries for pursuing potential interest in both cooperative and commercial areas. It will include
- KISR to use data from Indian Remote Sensing (IRS) satellites for initiating a few research and application projects.
- Building and launching of remote sensing and communication satellites of Kuwait on commercial terms and Training purpose.
Features of MoU
- Setting up of a Joint Working Group to work out the plan of action including the time-frame and means of implementing MoU. It will include members from ISRO and KISR.
- Give impetus to explore newer research activities and application possibilities in the field of remote sensing of the earth, satellite navigation, satellite communication, exploration of outer space and space science.