Union Cabinet chaired by the Prime Minister Narendra Modi
on 24 February 2016 gave approval to sign an agreement between India and
Maldives for the avoidance of double taxation of income from international air
transport.
FACTS ARE HERE
• It will provide tax certainty for airline enterprises of
India and Maldives.
• It provides for relief from double taxation for airline
enterprises of both the countries 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.
• The country, to which the product or enterprise belongs
to, will impose the tax on the profits from the operation of aircraft in
international traffic.
• Mutual Agreement Procedure is also provided to resolve
difficulties or doubts which arise during the interpretation or application of
the Agreement.
