- To check black money generation, the government approved signing and ratification of the agreement between India and Seychelles for exchange of information with respect to taxes which will help curb tax evasion and avoidance.
- The agreement will enable the competent authorities of India and Seychelles to provide assistance through the exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of two countries concerning taxes, it said.
- The agreement also provides for a Mutual Agreement Procedure for resolving any difference or for agreeing on procedures.
- “Only in the event of extraordinary costs exceeding US $ 500, the government of India will bear the same, as per Article 9 of the agreement. India has similar provisions in other such tax information exchange agreements,” it said.