DTAA regulations issue likely to be discussed at India-Australia trade meet next month

Australian Trade Minister Don Farrell will visit India by the end of September for the joint ministerial commission meeting and India would raise the DTAA regulations issue, the official said.

DTAA regulations issue likely to be discussed at India-Australia trade meet next month
India and Australia signed the Economic Cooperation and Trade Agreement in April but it is yet to come into force. (Representational image)

India will raise with Australia the tax issue being faced by Indian IT companies under the double taxation avoidance agreement, during a meeting between the two countries’ trade ministers next month, according to an official. Both countries signed the Double Taxation Avoidance Agreement (DTAA) in 1991 and it was updated in 2013.

India has called for an early amendment of the regulations under the DTAA to stop taxation of the offshore income of Indian firms providing technical support in Australia. Australian Trade Minister Don Farrell will visit India by the end of September for the joint ministerial commission meeting and India would raise the DTAA regulations issue, the official said.

Commerce and Industry Minister Piyush Goyal will attend the meeting. Earlier, New Delhi has emphasised that the amendment of the DTAA regulations was an important issue, which was agreed upon under the India-Australia trade agreement.

Also read| India@75: Economy must run faster to address socio-eco problems

India and Australia signed the Economic Cooperation and Trade Agreement in April but it is yet to come into force. Issuance of visas for Indian students, ratification of trade pact for its early implementation and market access issues relating to commodities such as potato, pineapple, and onion in the Australian market are also expected to come up during the joint ministerial commission meeting scheduled to be held in New Delhi.

A DTAA is signed between nations to help taxpayers avoid paying double taxes on the same income. It comes into play when an individual or a company is a resident of one country but earns income in another country.

Also read| Independence Day 2022| India achieved 10 pc ethanol blending target ahead of schedule: PM Modi

Several Indian IT companies, including TCS, Infosys and Wipro, have operations in Australia. Australia is the 17th largest trading partner of India while New Delhi is Canberra’s 9th largest trading partner. With respect to Australia, India’s goods exports were worth USD 6.9 billion and imports aggregated to USD 15.1 billion in 2021.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos