India inks DTAA with Ethiopia to check tax evasion

 India has signed a Double Taxation Avoidance Agreement (DTAA) with Ethiopia to check tax evasion and facilitate exchange of banking information.

The agreement was signed by External Affairs minister S M Krishna and Ethiopia's minister of Finance and Economic Development Sufian Ahmed, in the presence of Prime Minister Manmohan Singh and his Ethiopian counterpart Meles Zenawi.

Besides facilitating economic cooperation between the two countries, the agreement will help prevent "fiscal evasion with respect to taxes on income," an official release said.

The agreement would also allow effective exchange of information, including banking data, and assistance in collection of taxes.

It incorporates anti-abuse provisions to ensure that the benefits of the agreement are availed of by the genuine residents of India and Ethiopia. (PTI)