Zurich/Vienna: The 100 days waiting period in Switzerland for the ratification of revised Swiss-India tax treaty ends on Thursday, paving the way for further steps towards exchange of information between the two countries on tracking black money in banks of the European nation.
“It (information sharing) will take place from the first day of the next financial year, 1 January 2012 for Switzerland and 1 April 2012 for India,” M. Ganapathi, secretary (West), ministry of external affairs said in Vienna.
The protocol amending the Double Taxation Avoidance Agreement (DTAA) between India and Switzerland was signed in New Delhi on 30 August this year.
Micheline Calmy-Rey, president of the Swiss Confederation, shakes hands with Pratibha Patil, as Manmohan Singh, left, looks on at a welcoming ceremony at the Presidential Palace in New Delhi. Photo: Bloomberg
The Swiss Parliament had approved the protocol in June and placed it for 100 days waiting period, for public objections, if any.
One of the most crucial sections of the agreement on the issue of tax related matter is Section 26 which deals with exchange of information.
The initial double taxation avoidance agreement between the two countries was signed on 2 November 1994. It was subsequently amended and a supplementary protocol signed in Delhi on 16 February 2000.
The revised treaty would allow India to access tax related information from the Swiss authorities with a prospective effect.