Cabinet DecisionsLegislation Updates

Union Cabinet has given its approval for the Memorandum of Understanding to be signed between Geological Survey of India (GSI), Ministry of Mines of the Republic of India and Geological Survey of Brazil – CPRM, Ministry of Mines and Energy of the Federative Republic of Brazil on “Cooperation in field of Geology and Mineral Resources”.

The MoU will provide an institutional mechanism between the Geological Survey of India, Ministry of Mines of the Republic of India and Geological Survey of Brazil – CPRM, Ministry of Mines and Energy of the Federative Republic of Brazil for cooperation in the field of Geology and Mineral Resources.


[Source: PIB]

[Cabinet]

[Press Release dt. 22-01-2020]

 

Cabinet DecisionsLegislation Updates

Union Cabinet approved the signing of the Protocol amending the Convention between the Government of the Republic of India and the Government of the Federative Republic of Brazil for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

Implementation Strategy and Targets:

After Cabinet approval, necessary formalities for bringing the Protocol into force will be completed. Implementation would be watched and reported by the Ministry.

Major impact:

Through updation of the Double Taxation Avoidance Convention’s (DTAC’s) provisions to international standards, the Amending Protocol between India and the Federative Republic of Brazil will facilitate the elimination of double taxation. Clear allocation of taxing rights between the Contracting States through DTAC will provide tax certainty to investors & businesses of both countries. The Amending Protocol will augment the flow of investment through lowering of tax rates in source State on interest, royalties and fees for technical services. The Amending Protocol implements minimum standards and other recommendations of the G-20 OECD Base Erosion Profit Shifting (BEPS) Project. Inclusion of Preamble Text, a Principal Purpose Test, a general anti-abuse provision in the DTAC along with a Simplified Limitation of Benefits Clause as per BEPS Project will result in curbing of tax planning strategies which exploit gaps and mismatches in tax rules

Point-wise details:

a.  The existing DTAC between India and Brazil was signed on 26th April, 1988 and was amended through a Protocol signed on 15th October 2013 in respect of exchange of information. Through the present Protocol, the DTAC has been amended on various other aspects.

b.  The amended DTAC also implements the minimum standards as well as other recommendations of the G-20 OECD Base Erosion and Profit Shifting (BEPS) Project.

Background:

The existing Double Taxation Avoidance Convention (DTAC) between India and Brazil being very old was required to be amended to bring it in line with international developments and also to implement the recommendations contained in the G20 OECD Base Erosion and Profit Shifting Project (BEPS).


Ministry of Finance

[Press Release dt. 06-11-2019]

Legislation UpdatesNotifications

G.S.R.282(E) — In exercise of the powers conferred by sub-sections (1) and (2) of Section 3 of the Repatriation of Prisoners Act, 2003 (49 of 2003), the Central Government hereby directs that the provisions of the said Act shall apply to the Federal Republic of Brazil. The full text of the Agreement on Transfer of Sentenced Persons signed by the Republic of India and the Federal Republic of Brazil on 15.10.2013 is given below. The Agreement was ratified by the Republic of India on 1.1.2014 and by the Federal Republic of Brazil on 24.10.2018. The Instruments of Ratification were exchanged on 24.1.2019.

AGREEMENT BETWEEN THE REPUBLIC OF INDIA AND FEDERAL REPUBLIC OF BRAZIL ON THE TRANSFER OF SENTENCED PERSONS

The Republic of India and the Federative Republic of Brazil hereinafter referred to as the Contracting States;

Desiring to facilitate the social rehabilitation of sentenced persons into their own countries; and

Considering that this objective should be fulfilled by giving foreigners, who have been convicted and sentenced as a result of their commission of a criminal offence, the opportunity to serve their sentences within their own society;

Have agreed as follows:

ARTICLE 1

Definitions

For the purpose of this Agreement:
(a) “Judgment” means a decision or order of a court or tribunal imposing a sentence;
(b) “Receiving State” means a State to which the sentenced person may be, or has been, transferred in order to serve his sentence;
(c) “Sentence” means any punishment or measure involving deprivation of liberty ordered by a court or tribunal for a determinate period of time, in the exercise of its criminal jurisdiction;
(d) “Sentenced person” means a person who is serving a definitive and enforceable sentence in the transferring State under a judgment passed by a criminal court in the Contracting States;
(e) “Transferring State” means the State in which the sentence was imposed on the person who may be, or has been transferred.

Note: Please follow the link for detailed notification – Notification

[Notification dt. 02-04-2019]

Ministry of Home Affairs

NewsTreaties/Conventions/International Agreements

The Union Cabinet chaired by Prime Minister Narendra Modi has approved Memorandum of Understanding (MoU) between India and Brazil on cooperation in the field of Traditional Systems of Medicine and Homoeopathy.

Benefits:

The MoU will enhance bilateral cooperation between India and Brazil in the areas of Traditional Systems of Medicine. This will be of immense importance to both countries considering their shared cultural heritage.

Background:

 India is blessed with well-developed systems of traditional medicine including medicinal plants, which hold tremendous potential in the global health scenario. India and Brazil share a very close and multi-faceted relationship at bilateral level as well as in plurilateral for a such as BRICS, BASIC, G-20, G-4, BSA, and in the larger multilateral bodies such as the UN, WTO, UNESCO and Who. Brazil is one of the most important trading partners of India in entire Latin America and Carribean region.

Both India and Brazil are rich in biodiversity with a large range of health practices based on medicinal plants and history of use of traditional medicine. Ayurveda, Yoga and other traditional systems are popular in Brazil.

[Source: PIB]

Cabinet