Avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income



Protocol between Government of India and the Government of Japan on Amendment of Convention for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income
The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has approved signing and ratification of Protocol between India and Japan for amending the Double Taxation Avoidance Convention (DTAC) signed between the two countries in 1989 for avoidance of double taxation and for prevention of fiscal evasion, through a protocol.


The Protocol will facilitate exchange of information, as per accepted international standards, on tax matters including bank information and information without domestic tax interest. There is a further provision in the Protocol for sharing any information received from Japan, with authorization of the competent authority in Japan and vice versa, in respect of a resident of India, with other law enforcement agencies.

The Protocol also has a provision for India and Japan to lend assistance to each other in collection of revenue claims, as well as for exemption of interest income from taxation in the source country, with respect to debt-claims insured by the Government or Government-owned financial institutions.
*****

Cabinet approves rehabilitation package and upgradation of infrastructure of the Bangladeshi enclaves and Cooch Behar district after transfer of enclaves between India and Bangladesh
The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has approved the rehabilitation package and upgradation of infrastructure of the Bangladeshi enclaves and Cooch Behar district after transfer of enclaves between India and Bangladesh.

The total financial implication for implementation of various components is around Rs. 1005.99 crores. This includes Rs. 898.50 crores as the fixed cost of strengthening and creation of infrastructure in Cooch Behar district and Bangladesh enclaves in India. Besides, a variable cost of Rs. 107.49 crores is likely to be incurred for the rehabilitation. The actual variable cost would depend upon the actual number of families returning to India.

All the works will be implemented by the State Government or its agencies in a time-frame of 3-5 years, and funds would be released by the Ministry of Home Affairs to the State Government as grant-in-aid.

The rehabilitation package and upgradation of infrastructure of the Bangladeshi enclaves and Cooch Behar district after transfer of enclaves between India and Bangladesh follows the two proposals received from the Government of West Bengal.

The rehabilitation measures such as infrastructure development and rehabilitation assistance will help seamless integration of areas and people.
*****

Revised cost estimates for setting up of five Indian Institutes of Science Education and Research
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the revised cost estimates to the tune of Rs. 4,799 crore as against the originally approved cost of Rs,2,500 crore, for setting up of five Indian Institutes of Science Education and Research (IISERs) at Kolkata, Pune, Mohali, Bhopal and Thiruvananthapuram.

While construction of these five Institutes is in progress, approval of the revised cost estimates will enable the Ministry and the Boards of Governors of the Institutes to enhance the pace of work and expeditious completion of fully operational permanent campuses with 9,275 students, 928 faculty and 1,020 non-teaching staff by 2018-19.

These institutes will integrate Under-graduate education, Post-graduate education and research under the same umbrella. They will interact with National Laboratories, and other research institutes to develop a synchronous environment for research that would transcend rigid administrative structure and also encourage interdisciplinary research.

Many areas of basic science eventually evolve as applied sciences e.g. lasers, super conductivity, semiconductors, nano-materials etc. Research in such areas can generate significant intellectual properties which have the potential for generating sizeable revenue.

These institutes would also contribute to highly competent and trained manpower that would be a major catalyst for technological human resource revolution that would inevitably have an impact on the economic growth of the country.
*****

MoU between India and Iran on visa facilitation
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the signing of the agreement between India and Iran on visa facilitation for Diplomatic, Official/Service and Ordinary passport holders.

Salient features of the agreement are as given below:

(i) Consequent upon this, upon presentation of an official note by the local Ministry of Foreign Affairs along with the visa application, the resident Diplomatic Missions in the host country would, within 20 working days, issue a gratis visa valid for 90 days for the holders of valid Diplomatic/Official/Service passports, assigned on long-term missions to the Diplomatic Missions or the Consulates General. Appropriate gratis visas of three months' validity for visiting close family members (blood relations such as parents, siblings, adult children as well as in-laws) and visas for other close relatives of the assignees, on payment of visa fees due would be issued.

(ii) On presentation of an official note by the Ministry of Foreign Affairs stating the purpose of the visit, a non-extendable gratis entry visa will be issued within three working days, with a validity of up to fifteen days, to political authorities and officials travelling for specific bilateral purposes or to participate in a conference or seminar.

(iii) A multiple-entry gratis visa of three months' validity, for stays up to 20 days during each visit, for the audit/financial and IT/computer officials who travel on stated official business to their respective Diplomatic Missions and Consulates General will be issued within 15 working days.

(iv) Under special administrative exigencies, a single-entry gratis visa of validity up to three months for temporary deployments to the Diplomatic Missions or Consulates General in the host country will also be issued within 15 working days.

(v) Upon presentation of an official note by the local Ministry of Foreign Affairs along with the visa application of the teachers and their dependent spouse and children, a single entry Service/Official gratis visa of three months' validity will be issued, within twenty working days.

(vi) This Agreement will come into force upon signing and exchange of official notes confirming that legal formalities on either side have been fulfilled.

(vii) This Agreement will be valid for an indefinite period. Each Party may, however, terminate this Agreement by giving a written notice for this purpose through diplomatic channels, at least 60 days in advance.

(viii) Either Party reserves the right to prevent the entry, shorten or terminate the stay of the nationals of the other party in accordance with their respective laws and regulations.

(ix) This Agreement can be amended at any time as decided and mutually agreed upon in writing by the Parties. Any dispute arising out of the interpretation, implementation or application of any provision of this Agreement shall be settled amicably through consultation or negotiation between the Parties.
*****
Setting up and operationalisation of six new IITs and in-principle approval for establishment of these IITs as Registered Societies under the Societies Registration Act, 1860
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved setting up of six new Indian Institutes of Technology (IITs) in Andhra Pradesh, Chhatisgarh, Goa, Jammu, Kerala and Karnataka. The Cabinet further gave its approval for operationalisation of these IITs initially by forming of Societies under the Societies Registration Act, 1860 in order to give a legal status to them till the amendment for their incorporation in The Institutes of Technology Act, 1961 is enacted.

Each new IIT will have an initial intake of 180 students in its first year from temporary / transit which would increase to 450 in the second year and to 928 (840 Undergraduates, 80 Postgraduates and 8 Ph.D.) in the third year of their operation.

The total cost for running these IITs is Rs.1,411.80 crore and will be incurred between 2015-16 and 2018-19.

The new IITs will be operated from their temporary campuses for the initial period of three years before shifting into their permanent campuses in the 4th year. Each IIT will have a sanctioned strength of faculty members, with a faculty-student ratio of 1:10.

Background:

The present approval for the establishment of the six new IITs to be registered as Societies under the Societies under the Societies Registration Act, 1860 to create new legal IIT entities, as passing the Bill for amendment of the IT Act, 1961 for incorporation of the six new IITs in the Parliament will take some time.

The Institutes of Technology Act, 1961, contains no provision to enable establishment of new IITs. Every new IIT commenced since its enactment has required an amendment to the Act itself. In light of this, it would be appropriate to establish the new IITs through the formation of Societies as it has not been possible to amend the Institutes of Technology Act, 1961 to make provision for establishment of new IITs, before the admissions to academic session 2015-16 in these new IITs.
*****
MoU between India and Germany for Capital Goods Sector
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved a Memorandum of Understanding (MoU), which has been signed between Indian and Germany, for implementation of Make in India campaign for Capital Goods Sector and Fraunhofer Gesellschaft (Fraunhofer), Germany, a leading organisation of 65 institutes for applied industrial research in Europe.

The objective of signing MoU between Department of Heavy Industries and Fraunhofer is to provide platform to various public sector undertakings and capital goods sector units to have easy access to capabilities and expertise of Fraunhofer for identifying and plugging technology gaps in line with 12th Five Year Plan.

Fraunhofer will be a “Technology Resource Partner” for implementing of identified projects in manufacturing, working with various stakeholders in Government of India, Industries and academia for increased cooperation and collaboration in applied industrial research and technology development. They have capability to provide advanced industrial technologies needed by the Indian Capital Goods Sector.
*****

MoU between India and Germany for Solar Energy
The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved a Memorandum of Understanding (MoU), which has been signed in October, 2015, between Indian and Germany, to expand bilateral development cooperation in the field of Solar Energy by increasing use of solar energy in India through technical as well as financial cooperation.

The MoU will help in strengthening bilateral cooperation between the two countries.

Under the agreement, Germany would provide concessional loans in the range of one billion Euros over the next five years through Kreditanstalt fur Wiederaufbau (KfW). The funds of KfW will also be utilized for providing soft loans to the end-users through partner banks.

The MoU would lead to -

i. Cooperation in the field of solar rooftops;

ii. The development of solar parks or solar zones (if possible in close proximity to the Green Energy Corridors financed by KfW under Indo-German Financial Cooperation) and

iii. Solar off-grid applications to improve the access to clean and sustainable energy

**********
Introduction of “Regional Centre for Biotechnology Bill, 2015” in the Parliament
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for introduction of a Bill for establishment of a Regional Centre for Biotechnology in Faridabad. The objective of the Bill is to provide a legal status to the Centre so as to function independently as an autonomous body and also an Institution of National Importance for education, training and research in the areas of biotechnology. The Centre has already been established by an executive order of the Government of India in November, 2008 after the approval by the Union Cabinet. It is currently operational at the NCR Biotech Science Cluster, Faridabad and the enactment does not involve any financial implications at this stage.

The Centre is a regional hub for interdisciplinary education, training and research in biotechnology with emphasis on novel education programmes relevant to industry, including bio-drug discovery science, nano-science and medicine, imaging techniques, designer crops, bioengineering and biomaterials, intellectual property, technology transfer and regulation to fulfil and overcome the acute shortage of skilled human resources in India. It would be a hub of biotechnology expertise in the countries in South Asian Association for Regional Cooperation (SAARC) region, and more generally in the Asia region, and to address human resources needs in the region.

The Centre is an inter-disciplinary institution in life sciences and biotechnology and offers novel educational & training courses in the interdisciplinary and related areas of biotechnology. It would also address designing of new and novel programmes for education & training which could then be assimilated by the existing universities in India and the Region.
*****

Cabinet approves changes in the Implementation Framework of National Rural Livelihood Mission
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has today given its approval for changes in the rural welfare programmes for a focussed and targeted intervention in poverty reduction, expanding the benefits of interest subvention under National Rural Livelihood Mission (NRLM) to 100 more districts and flexibility in allocation to Himayat programme and Deen Dayal Upadhyaya Grameen Kaushal Yojana for skilling and placing more youth from poorer sections. The Cabinet has also approved relaxation in the existing criteria for the allocation of funds to NE States other than Assam to cover all vulnerable rural households by 2023-24. These include:-

A. Changes in the implementation framework of NRLM

i. Planning for targeted reduction of poverty using The Socio-Economic and Caste Census, SECC database and convergence with other social sector interventions - The use of SECC data would enable the Government to introduce much need focussed and targeted intervention in poverty reduction in rural area programmes The NRLM will use the SECC data to undertake planning for poverty free Panchayats involving Panchayati Raj institutions and Self-Help Group (SHG) of households.

ii. Extending interest subvention in 100 more districts. The interest subvention to all women SHGs to avail loans upto Rs.3 lakh from Banks at the interest rate of 7% per annum and also an additional subvention of 3% for prompt repayment, bringing the effective rate of interest to 4% is being extended to 100 more districts from the current financial year. The criteria for identification of districts is as follows:-

a) All new districts declared as Integrated Action Plan (IAP) districts which were not covered in the earlier list of 150 districts will be included in the list.

b) The remaining districts will be allocated to the States on a pro-rata basis in proportion to the total number of districts in the State/UT. The States will identify the eligible districts from among the IAP districts of NRLM.

c) The States have been granted flexibility to have only a single allocation under NRLM, based on poverty ratio.

iii. Greater thrust on skill development to Deen Dayal Upadhyaya Grameem Koushal Yojana. The Cabinet has approved removal of existing restriction which limits the allocation of DDU-GKY to 25% of NRLM allocation to enable Ministry to expand its focus, inter-alia, to cover training courses of longer duration for placements in foreign jobs, captive jobs, industry internships, training by accredited institutes and champion employers, and re-skilling/up-skilling of rural poor youth, including rural poor youth who have passed out from ITls/Polytechnic Institutes.

iv. Professional Management cost (administrative expenses) for NRLM.

a) The existing ceiling for Professional Management cost (administrative expenses) to be enhanced to 6% of NRLM allocation.

b) Skill development and placement as under Deen Dayal Upadhyaya Grameem Kaushal Yojana to be allowed administrative expenses as part of NRLM.

c) The human resource component under NRLM as per the terms of the project implementation plan and financing agreement with World Bank to be kept outside the purview of the ceiling.

B. Need based financial allocation of Himayat programme of Jammu and Kashmir. The Cabinet has approved the existing cap of Rs.235.30 crore on the total outlay for Himayat may be replaced with a demand-based allocation and target within the overall budget provision of NRLM, and the scheme will be funded entirely by the Central Government.

C. Relaxation in the existing criteria in the allocation of funds for the NE states, other than Assam, to cover all vulnerable rural household by 2023-24. The Cabinet has approved providing relaxation in the existing criteria for allocation of funds to make adequate provision for the NE states, other than Assam, to cover under NRLM all vulnerable rural households in these States estimated at two thirds of all the rural households, by the year 2023-24, without linking the allocation to inter-se poverty ratios
*****

Memorandum of Understanding between India and Maldives in the field of sports and youth affairs
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for a Memorandum of Understanding (MoU) between India and Maldives which was signed in October, 2015 in the field of sports and youth affairs.

The bilateral exchange programmes will help in expanding knowledge and expertise in the areas of sports science, sports medicine, coaching techniques, participation in youth festivals and camps which would result in improvement in performance of India’s sportspersons in international tournaments and strengthening of bilateral relations between the two countries.
*****

Memorandum of Understanding between India and Israel in the field of water resources management and development cooperation
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for signing of a Memorandum of Understanding (MoU) between India and Israel in the field of water resources management and development cooperation.

The bilateral cooperation will benefit both the countries in strengthening the techniques in efficient use of water, micro-irrigation, recycling/re-use of waste water, desalination, aquifer recharge and in-situ water conservation techniques. A Joint Working Group shall be formed to monitor the activities to be carried out in fulfilment of the MoU.

India has already entered into agreements with Australia, Rwanda, Cambodia, Iran, Iraq, Fiji, China and Bahrain in the field of water resources management and development cooperation.

Background:

The Ministry of Water Resources, River Development and Ganga Rejuvenation has been envisaging bilateral cooperation with other countries in water resources development and management through sharing of policy and technical expertise, conducting of training courses, workshops, scientific and technical symposia, exchange of experts and study tours. Keeping in view the success of Israel in water use efficiency, micro-irrigation, reuse of waste water, desalination, aquifer recharge, etc., it has been decided to have an agreement with Israel to benefit from their experience and expertise.


No comments

Powered by Blogger.