Thursday, November 3 2005 15:45 Hrs (IST) - World Time -

New Delhi: India today (Nov 03, 2005) decided to amend the Double Taxation Avoidance Convention with Itlay, with a view to boosting trade and investment from the European nation.

"The Union Cabinet today gave its approval for signing of the protocol amending the Double Taxation Avoidance Convention," Information and Broadcasting Minister S Jaipal Reddy said after the meeting.

The two sides agreed to incorporate the Italian proposals as well as the Indian proposals through a 'Protocol' amending the existing convention, he said.

The main provisions of the protocol include substitution of local income tax with a regional tax on productive activities by Italy.

It also envisages broadening the scope of Permanent Establishment for taxation of services and insurance covers.

The protocol also covers tax treatment of business profits, air transport and shipping.