New Delhi, 8 July: India and Albania today signed an agreement for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital.
The agreement was signed by Ms Sudha Sharma, chairperson, Central Board of Direct Taxes (CBDT), and Mr Fatos Kerciku, Ambassador, Republic of Albania.
The DTAA provides that business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment (PE) in the source state. The agreement provides for fixed place PE, building site, construction & installation PE, service PE and agency PE. The agreement incorporates provisions for effective exchange of information between tax authorities.     sns