PC signs DTAA with Mexico
The Finance Minister signed yesterday with Mexico's Foreign Minister, Patricia Espinosa Cantellano, a Double Taxation Avoidance Agreement (DTAA).
The DTAA between India and Mexico
1. will cover in the case of India, income-tax including any surcharge thereon and in the case of Mexico, the federal income-tax.
2.provides for taxation of dividend, interest, royalties and fees for technical services-both in the country of residence as well as the country of source. However, the rate of tax in the country of source shall not exceed ten percent of the gross amount of payment in case the beneficial owner of the payments is a resident of the other Contracting State.
3.provides that capital gains from alienation of shares of a company shall be taxable in the country where the company is a resident.
4.Will avoid double taxation by one country giving credit for taxes paid by its residents in the other country.
5. Will provide exchange of information in cases which are under investigation in either of the two countries.
6.Will ensure that both countries assist each other in collection of revenue claims.