India seeks to modify tax pact with China to fight black money
New Delhi: India is looking to broaden the scope of its nearly two-decade old taxation treaty with China to facilitate the exchange of banking and tax information for fighting the menace of black money.
Besides, broadening of the DTAA with Serbia, Belgium, Italy, Ireland, Kazakhstan, Myanmar, Syria and Turkmenistan are under consideration, a Finance Ministry note said.
"Broadening of scope of Article (of DTAA) concerning exchange of information...(is) under consideration," with China and eight other countries, it added.
India had entered into a Double Taxation Avoidance Agreement (DTAA) with China in 1995.
India is revising its DTAA with 75 countries to include banking information in the pacts. So far, 22 such negotiations have been completed, the note said.
China is India's second largest trade partner after UAE, with the bilateral commerce aggregating about USD 63 billion in 2010-11. However, foreign direct investment from the neighbour has totalled only USD 93 million between April 2000 and November 2011.
The DTAA with Switzerland was revised in August 2010 and came into force on October 7, 2011. The revised treaty allows for exchange of information on any tax fraud as well as on tax evasion cases.