New Delhi, July 10 (KNN) Industry body FICCI has hailed the signing of FATCA agreement between India and US authorities, saying this is an important step.
 
While expressing her happiness on the signing of Foreign Account Tax Compliance Act, Jyotsna Suri, President, FICCI stated, “FICCI welcomes signing of FATCA agreement between Indian and US authorities. This is an important step, we now look forward to the operating guidelines for FATCA implementation in India”.
  
India and the United States, on Thursday, signed an agreement to implement Foreign Account Tax Compliance Act (FATCA) from October 1 of this year. The FATCA will enable and facilitate smoother exchange of tax-related information between the two countries, and help both fight evasion.

The intergovernmental agreement (IGA) on FATCA was signed in the Finance Ministry by Revenue Secretary Shaktikanta Das and the US Ambassador to India Richard Verma.

"FATCA is a mutual effort to combat tax evasion and it would be mutually beneficial for both the countries. The agreement would detect, discourage offshore tax evasion. This kind of exchange of information is top priority for governments," Verma said after the signing.

Talking to reporters after signing the agreement, Das said, "We reassured the US government of the binding commitment to fight the menace of evasion and bring transparency in the matters of payment of taxes, which are legitimately due to the government."
  
"It is hoped that the exchange of information on automatic basis, regarding offshore accounts under FATCA would deter tax offenders, would enhance tax transparency and eventually bring in higher equity in to the direct tax regime which necessary for a healthy economy," Das said. (KNN Bureau)