Bahrain businessmen eye India DTAA deal
Manama, October 10, 2011
Businessmen in Bahrain have called for a double taxation avoidance agreement (DTAA) with India, in a bid to spur trade ties between the two countries.
Indian Ambassador Mohan Kumar was handed over a letter by Bahrain India Society (BIS) chairman Abdulnabi Al Sho'ala to be sent to Indian authorities.
"This agreement, if it takes effect, will enable Indian businessmen to set up base in Bahrain and likewise, Bahraini businessmen will be encouraged to set up business in India after taking advantage of the DTAA," Al Sho'ala said.
In the region, India has similar agreements with Turkey, Libya, Egypt, Israel, Jordan, Syria, Morocco, Saudi Arabia, Kuwait, Qatar, Oman and the UAE.
"Senior government ministers in Bahrain have expressed their keenness to sign this treaty with India, which will provide an impetus for citizens of both countries, especially businessmen and professionals, and will also go a long way in further developing the business ties between both countries."
At present, Indian businessmen from Bahrain, who do business in India, are required to pay taxes in India while businessmen in India, who do business in Bahrain, are also required to pay taxes in India.
Once the DTAA comes into effect, businessmen from both countries will be taxed only for business they do in either Bahrain or India, and that too at low rates, said a BIS official.-TradeArabia News Service