The Cabinet chaired by the Prime Minister Narendra Modi on Thursday gave its approval for the signing of the revised Air Services Agreement (ASA) between India and Seychelles to modernize and update the existing ASA signed in 1978.
The ASA signifies an important landmark in the civil aviation relations between India and Seychelles and has the potential to spur greater trade, investment, tourism and cultural exchanges between the two countries.
As a result of this agreement, the number of flights between India and Seychelles has been increased from three per week to seven per week.
In another decision, the cabinet has also approved the signing and ratification agreement between India and Seychelles for exchange of information with respect to taxes.
The Agreement will stimulate the flow of exchange of information between India and Seychelles for tax purposes, which will help curb tax evasion and tax avoidance.
The salient feature of this agreement is that it will enable the Competent Authorities of India and Seychelles to provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of two countries concerning taxes covered by this agreement.
In another decision, the cabinet has approved the promulgation of the Dadra and Nagar Haveli Value Added Tax (Amendment) Regulation, 2005 by the President under article 240 of the Constitution. This will help the Union territory to generate additional gross revenue .