New Delhi: The Cabinet on Wednesday approved signing of tax information exchange agreement between India and Brunei.
The agreement enables the competent authorities of India and Brunei to provide assistance through exchange of information, relevant to the administration and enforcement of the domestic laws of the two countries concerning taxes, an official statement said.
"The Union Cabinet chaired by Prime Minister Narendra Modi has has approved the signing and ratification of agreement between India and Brunei Darussalam for the Exchange of Information and Assistance in Collection with respect to Taxes," the statement said.
The information received under the agreement will be treated as confidential and may be disclosed only to persons or authorities (including courts or administrative bodies) concerned with assessment, collection, enforcement, prosecution or determination of appeals in relation to taxes covered under the agreement.
The statement said information may be disclosed to any other person or entity or authority or jurisdiction with the prior written consent of the information sending country.
"The agreement also provides for automatic exchange of information between India and Brunei with respect to categories of cases," the statement said.
It will also enable assistance in collection of tax revenue claims between both countries and mutual agreement procedure for resolving any difference or for agreeing on procedures under the agreement.
"The agreement will stimulate the flow of exchange of information between India and Brunei for tax purposes which will help curb tax evasion and tax avoidance. It will also enable assistance in collection of tax revenue claims between both the countries," the statement added.
The Central government is authorised under section 90 of the Income Tax Act, 1961 to enter into an agreement with a foreign country or specified territory for exchange of information for the prevention of evasion or avoidance of income tax chargeable under the Income Tax Act, 1961....