Union Cabinet gave Nod to India-Maldives Double Taxation Agreement on Airlines
- The union Cabinet chaired by Prime Minister Narendra Modi has given its approval on February 24, 2016 for signing of an Agreement between India and Maldives for the avoidance of double taxation of income from international air transport.
- The agreement provides for relief from double taxation for airline enterprises of India and Maldives by 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.
- Under the agreement, profits from the operation of aircraft in international traffic will be taxed in one country alone. Accordingly, the taxing right is conferred upon the country to which the enterprise belongs.
- The agreement will provide tax certainty for airline enterprises of India and Maldives. The agreement further provides for Mutual Agreement Procedure, for resolving any difficulties or doubts arising as to the interpretation or application of the Agreement.
Cabinet Nod to Incentivise Cashless Transactions
- The union Cabinet approved on February 24, 2016 several steps to promote cashless transactions. With this decision, the government has completed its promise for such measures made in the previous Budget.
- The steps included mandatory card-based or electronic payments beyond a prescribed threshold, rationalisation of the Merchant Discount Rate (MDR) on card transactions and telecom service charges for digital financial transactions to promote mobile banking.
- The steps also included withdrawal of any additional charge currently imposed on card or digital payments by various government entities and the introduction of the required infrastructure for digital payments in all government offices.
Establishment of Atal Innovation Mission and SETU in NITI Aayog
- The union Cabinet chaired by Prime Minister Narendra Modi has given its approval on February 24, 2016 for establishment of Atal Innovation Mission (AIM) and Self Employment and Talent Utilisation (SETU) in NITI Aayog with appropriate manpower.
- The establishment of AIM and AIM Directorate would result in implementation of Mission activities in a focussed manner. This would be a focal point for innovation and entrepreneurship in the country.
- The Mission would be guided by a Mission High Level Committee (MHLC) which will take all decisions relating to approv al ot requisite guidelines including Grand Challenge areas, prize money and implementation of various elements of AIM and SETU. NITI Aayog will hire Mission Director and other appropriate manpower. The headquarter of the Mission will be New Delhi.
