By IANS
New Delhi : The union cabinet Thursday gave its retroactive approval for an agreement between India and Mexico on avoidance of double taxation and prevention of fiscal evasion.
The agreement was earlier signed during the visit of Mexican President Felipe Calderon Hinojosa’s three-day state visit in September 2007.
According to a government communiqué, this agreement will stimulate the flow of capital, technology and personnel between the two nations. “It will provide tax stability and reduce and obstacles in providing mutual cooperation,” it said.
While trade has grown rapidly between the two countries, it has remained heavily tilted in favour of India. In 2006, bilateral trade was $1.8 billion, out of which Indian exports to Mexico amounted for $1.1 billion.
India has so far signed such bilateral double taxation avoidance treaties with 71 other countries.