BUSINESS

Productivity-linked bonus for non-gazetted railway employees

In a move that is likely to benefit about 12.58 lakh non-gazetted railway employees, the Union Cabinet on Wednesday approved the payments of productivity-linked bonus (PLB) equivalent to 78 days’ wages for the financial year 2014-15 to them. The total payments is estimated at Rs.1,030.02 crore, according to an official release.

The wage calculation ceiling prescribed for payment of PLB to the eligible non-gazetted railway employees is Rs.3,500 p.m. The maximum amount payable per eligible railway employee is Rs.8,975 for 78 days, the release said.

A PLB of 78 days’ wages was earlier paid for the financial years 2010-11, 2011-12, 2012-13 and 2013-14. This year also it will be paid considering the good financial performance, said the release.

Black money

In its fight against black money, the Union Cabinet approved amendments to the existing double taxation avoidance convention (DTAC) between India and Israel and also to the existing double taxation avoidance agreement (DTAA) with Vietnam.

The amendment to the DTAC provides for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and on capital, said the release. The DTAC provides for internationally accepted standards for effective exchange of information on tax matters including bank information.

The information received from Israel in respect of a resident of India can be shared with other law enforcement agencies with authorisation of the competent authority of Israel and vice versa. The measure further provides for ‘Limitation of Benefits’ Article as an anti-abuse provision aimed at preventing misuse of the DTAC. The provisions of this Article enable use of the provisions of domestic law and measures concerning tax avoidance or evasion in the event of misuse of the Convention.

The DTAC between India and Israel was signed in 1996. Indian and Israeli had earlier agreed to update Article 27 on the ‘Exchange of Information’ in India-Israel DTAC to meet internationally accepted standards.

The DTAA between India and Vietnam provides for internationally accepted standards for effective exchange of information on tax matters including bank information and information without domestic tax interest.

It further provides that the information received from Vietnam in respect of a resident of India can be shared with other law enforcement agencies with authorisation of the competent authority. DTAA was signed in 1994. Both the Indian and Vietnamese sides had agreed to update Article 27 on the ‘Exchange of Information’ in it, to meet internationally accepted standards, and add a new Article on ‘assistance in the collection of taxes’, and enter into an amending protocol for the purpose.



Cabinet clears changes to double taxation avoidance pacts with Israel, Vietnam