A New Memorandum of Understanding (MoU) on suspension of collection of taxes during pendency of Mutual Agreement Procedure (MAP) was signed here today between India and South Korea. This MoU will relieve the burden of double taxation for the taxpayer in both the countries during the pendency of MAP proceedings.
Earlier a meeting was held here today between Indian and South Korean delegations headed by Revenue Secretary, Government of India and Commissioner, National Tax Service, South Korea under the Memorandum of Understanding (MoU) for Mutual Co-operation between the countries. The New MoU was also signed in the said Meeting. Further, both sides noted that transfer pricing dispute cases will be taken-up for MAP under the revised DTAA between India and South Korea. This is a step towards ease of doing business in India for Korean companies as it will relieve economic double taxation and promote cross-border trade and investment.