DUSHANBE, June 24, 2009, Asia-Plus  -- The Double Taxation Avoidance Agreement (DTAA) between the Government of Republic of India and the Government of Republic of Tajikistan was singed at the Government level on November 20, 2008 at New Delhi, according to the Indian Embassy in Dushanbe.

The Agreement was signed by the Deputy Finance Minister of Tajikistan and the Chairman, Central Board of Direct Taxes of India at the 5th India-Tajikistan Joint Commission Meeting at New Delhi.

The two sides have completed internal procedure required for the entry into force of this Agreement and the Agreement comes into force with effect from 10th April, 2009.

The Double Taxation Avoidance Agreement will now be published in the Gazette of India. This agreement will be effective in Tajikistan in respect of income derived in any fiscal year on or after the 1st day of January 2010, and in India in respect of income derived in any fiscal year on or after the 1st day of April 2010.

It may be noted that fiscal year in India is reckoned from April 1 of a year to March 31 of the following year, while Tajikistan’s fiscal year follows the calendar i.e. January 1 to December 31 of a year.

Coming into effect in the DTAA along with the existing Bilateral Investment Protection Agreement complete the legal framework required for promoting investments and giving a fillip to increased economic relations. It is hoped that the business community would be encouraged by these steps taken by the two governments.

The recently formed India Business Advisory Group in Dushanbe has welcomed the coming into effect of DTAA.