The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday gave its approval for signing of an agreement between India and Maldives for the avoidance of double taxation of income from international air transport.
The agreement provides for relief from double taxation for airline enterprises of India and Maldives by way of exemption of income derived by the enterprise of India from the operation of aircraft in international traffic, from Maldivian tax and vice versa.
Under the agreement, profits from the operation of aircraft in international traffic will be taxed in one country alone. Accordingly the taxing right is conferred upon the country to which the enterprise belongs.
Published 24 February 2016, 18:39 IST