Finance


 

1. DOUBLE TAXATION AVOIDANCE AGREEMENT
Unstarred Question 4261
23/4/2010

(a) the details and rationale behind the Double Taxation avoidance agreement with the South Korea; and

(b) the details of instances wherein the provisions of such agreement are invoked?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE (S. S. PALANIMANICKAM)


(a) Indian Government entered into Double Taxation Avoidance Agreement(DTAA) in 1990 with South Korea for

(iv) granting relief in respect of income-tax chargeable under Income-tax Act, 1961 and under the corresponding law in force in South Korea to promote mutual economic relations, trade and investment;

(v) for the avoidance of double taxation of income under Income-tax Act, 1961 and under the corresponding law in force in South Korea; and

(vi) for exchange of information for the prevention of evasion or avoidance of income-tax chargeable under Income-tax Act,1961 or under the corresponding law in force in South Korea.

(b) DTAA with South Korea provides for 30 Articles relating various aspects viz., with respect to different sources of income i.e., business profits, shipping income, air transport income, dividends, interest, royalties, fees for technical services, capital gains, independent and dependent personal services, income of artists, athletes, students, teachers, etc. These Articles of the DTAA came into force with effect from 1st April, 1991. Various provisions of DTAA are invoked by the residents of both the countries in respect of different sources of income. Details of instances of relief in each category of income by various residents amounts to verification of voluminous returns furnished by a large number of assessees throughout the country. Instances reveal that mainly shipping, infrastructure and engineering companies availed relief from double taxation.

2. PNB BRANCH IN ORISSA
Unstarred Question 1377
27/11/2009

(a)whether any new branches of Punjab National Bank(PNB) are proposed to be set up in Orissa; and

(b)if so, the details thereof?
ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)

(a) to (b):Yes, Sir. Punjab National Bank (PNB) has reported that it has indentified 62 centres in the State of Orissa for opening branches. The proposal has been submitted to the Reserve Bank of India for seeking authorization.


3. OPENING OF BRANCHES AND ATM COUNTERS
Unstarred Question 447
20/11/2009

(a) whether the Government has conducted any survey to study blocks which have a low penetration of bank branches/ATMs in India;

(b) if so, the details thereof;

(c) whether the Government directed banks to open new bank branches in the country including Orissa during the current year; and

(d) if so, the places identified for opening of the new branches in the country including districts of Orissa?

ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI NAMO NARAIN MEENA)


(a) to (d): In terms of Section 23 of the Banking Regulation Act, 1949, banks are required to obtain prior approval of Reserve Bank of India (RBI) for opening a new place of business. Such approvals are granted to banks depending on the thrust of the extant Branch Authorisation Policy, RBI, while granting approval, ensures that the approvals include centers in rural/underbanked districts also. The choice of centre/location for opening of new branches has been left to the discretion of banks, which banks decide taking into account various factors including profitability, viability, availability of infrastructure, etc.

There are 375 underbanked districts in India (of which 24 are in Orissa). A list of underbanked districts has been forwarded to banks to enable them to identify centres for opening branches in such districts. Also, while considering applications for opening bank branches received from banks, RBI gives weightage to the nature and scope of banking facilities provided by banks to common persons, particularly in under banked areas, actual credit flow to the priority sector, pricing of products and overall efforts for promoting financial inclusion. RBI has reported that during the period 1st April 2009 to 30l September, 2009, 1553 commercial bank offices have been opened of which 34 are in Orissa.