Tax pact with ASEAN members
NEW DELHI: The Union Government is planning to sign trade and tax treaties with countries in the ASEAN (Association of Southeast Asian nations) bloc in addition to Thailand and Sri Lanka and contemplating conducting joint audit for multinationals operating in India and ASEAN to monitor their annual statements, according to Advisor to Finance Minister Parthasarathi Shome.
Inaugurating the Assocham (Associated Chambers of Commerce and Industry of India) organised two-day international tax conference here on Tuesday, Dr. Shome said trade and tax treaties with ASEAN countries were in the offing to harmonise India’s international taxation system with those of ASEAN countries so that trade related issues between India and ASEAN were resolved for good.
Its being clarified that India had already signed similar agreements with Thailand and Sri Lanka, adding that India was contemplating to undertake joint audit for monitoring MNC business activities.
China, had similar arrangements with some of its friendly countries and India might shortly emulate China in this regard.
The joint audit would be effected by the Central Government in collaboration with States wherever MNCs were simultaneously operational within the periphery of Centre and those of States to ensure that their balance sheet and annual statements did not come out with conflicting figures.