SAARC Agreement on Avoidance of Double Taxation

By Vijay Kumar

The Union Cabinet gave its approval for the proposed “SAARC Limited Multilateral Agreement for the Avoidance of Double Taxation and Mutual Administrative Assistance in Tax Matters”. The Agreement will promote mutual administrative assistance and cooperation in tax matters among Member States of the SAARC. It will also provide tax relief to students and teachers for pursuing their academic interest. The Agreement will be signed at the 31st Session of the Standing Committee scheduled to be held in Dhaka on February 6-7, 2005 on behalf of the Governments of all the SAARC Member States.

The first meeting of the SAARC Member States on Avoidance of Double Taxation was held during August 5-7, 1999 in Islamabad, Pakistan. The responsibility of preparing the Draft of the ‘Avoidance of Double Taxation and Mutual Administration Assistance in Tax Matters’, was entrusted to India. The draft of the proposed agreement prepared by India has been discussed in the first and second meetings of the SAARC sub-group on Avoidance of Double Taxation held at the SAARC Secretariat, Kathmandu during October 26-28, 2004 and in Islamabad during December 6-7, 2004 respectively.

I have this interesting query from an enlightened reader,

Why can’t the Sports Ministry follow the Finance Ministry and retrospectively amend the rules for the Australian Tennis Open, to the effect that whoever loses in the third round is hereby made champion of the tourney and would have always been deemed to be the champion not withstanding anything contained in any rule, direction or order and no court, umpire or adjudicator anywhere in the world shall admit any appeal or decide any issue so as to give a different meaning to this ordinance and no court shall admit a petition on the ground that the Government has no power to issue an ordinance on this issue? Even Sania Mirza will not like this!