On August 24th 2016, Union Cabinet headed by Narendra Modi has given its approval for MoUs with Myanmar, Cyprus, Fiji and South Africa in different fields.
Union Cabinet approves an MoU with Myanmar in Medicinal field
The Union cabinet approved an MoU with Myanmar for cooperation in the field of traditional systems of medicine
- The Union Cabinet led by the Prime Minister Shri Narendra Modi has given its approval for the signing of a Memorandum of Understanding (MoU) between India and Myanmar in the field of Traditional Systems of Medicine.
- This MoU will provide integral frame work for cooperation between the two nations for promotion of AYUSH/Traditional Systems of Medicine in Myanmar.
- Apart from this, it will also boost the importance of AYUSH systems of medicine and conservation, production and standardization.
About Myanmar :
- Capital – Naypyidaw
- Currency – Kyat
- State Counselor – Aung san Suu kyi.
Cabinet approves DTAA pact between India and Cyprus to avoid Tax Evasion
In another major step in fight against tax evasion, the Cabinet gave its approval to the revised DTAA between India and Cyprus that provides for source-based taxation of capital gains on transfer of shares instead of one based on residence.
- The Union Cabinet led by the Prime Minister Shri Narendra Modi has given its approval for signing of an Agreement and the Protocol between the India and Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income.
- Noting that this step follows the recent amendment of the Double Taxation Avoidance Agreement (DTAA) with Mauritius, the statement said the treaty with Cyprus had provided for residence-based taxation of capital gains as in the case of Mauritius.
- An official-level meeting between India and Cyprus was held here in June to finalize the new India-Cyprus DTAA, wherein all pending issues, including taxation of capital gains, were discussed, and an in-principle agreement was reached.
- It is noted that India and Cyprus have a DTAA since 1994. Cyprus is a major source of foreign funds flows into the country. From April 2000 till March 2016, India received foreign direct investment to the tune of Rs 42,680.76 crore from Cyprus.
- The completion of negotiation on avoidance of double taxation and prevention of fiscal evasion has paved the way for removal of Cyprus from the list of ‘Notified Jurisdictional Areas’ retrospectively from November 2013.
About Cyprus :
- Capital: Nicosia
- Currency: Euro
Cabinet approves an agreement between India and Fiji in the field of Air Service
The Union Cabinet approved signing of a new air services agreement between India and Fiji that would allow Indian airlines to fly to any point in the island nation.
- The Agreement is for updation of the existing Air Services Agreement (ASA) between the two countries which was signed on 28th January, 197
The essential features of the Air Services Agreement are as follows:
- Both countries shall be entitled to designate one or more airline.
- The designated airlines of either country shall have the right to establish offices in the territory of the other country for the promotion and sale of air services.
- The designated airlines of the two countries shall have fair and equal opportunity to operate the agreed services on specified routes. The routes and frequencies shall be decided subsequently.
- The designated airline will be free to decide tariffs in respect of the agreed services at reasonable levels based on the commercial considerations.
- The designated Airline of each party can enter into cooperative marketing arrangements with the designated carriers of same party and other party.
- Apart from the above, the ASA also has the provisions relating to Revocation or Suspension of Operating Authorization, Principles governing operations of agreed services, commercial opportunities, safety related clause etc. that were incorporated in the line of Indian model ASA.
- The existing Route Schedule annex to the ASA has also been revised and new points of call have been added for enhanced connectivity. Now Indian carriers can operate to any points in Fiji from points in India whereas the carriers of Fiji can establish direct operation to Delhi, Mumbai and Chennai in India and by code share with Indian carriers to Bangalore, Kolkata, Hyderabad apart from points given for direct operation. Besides this, Kochi, Varanasi, Ahmedabad and Amritsar may be served through domestic code share operations.
About Fiji :
- Capital: Suva
- Currency: Fijian dollar
Union Cabinet approves an MoU between India and South Africa in the field of Grassroots Innovation
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has been approved of the signing of a Memorandum of Understanding (MoU) between India and South Africa to establish cooperation in Grassroots Innovation.
- As per this MoU, both countries will jointly organise various programmes such as forums, seminars, workshops, and training on matters related to innovation.
- The both countries also share open source technologies with each other and jointly develop projects to assist innovators in converting their ideas into commercially viable innovations leading to joint technology development and transfer of technology for Societal benefit.
- The MoU will provide a mechanism and help in creating an ecosystem that will promote inclusive innovation and entrepreneurship at the grassroots level in both countries with particular focus on Indigenous knowledge systems and Agriculture Biotechnology
- It is noted that the MoU was signed on July 07, 2016 at Pretoria in pursuance to the Inter-Government Agreement between two countries for cooperation in Science & Technology.
About South Africa :
- Capitals: Pretoria, Cape Town, Bloemfontein
- Currency: South African rand