India, Luxembourg to sign treaty on double taxation

Bangalore, Apr 25 (UNI) India and Luxembourg will soon sign a treaty on avoidance of double taxation, Luxembourg Minister for Economy and Foreign Trade Jeannot Krecke said today.

Addressing a seminar on 'Trade and Economic Co-operation between the two countries' organised by the Confederation of Indian Industry (CII) and the Luxembourg Board of Economic Development here, Mr Krecke said the issue had been pending for over a decade and during his discussions with Union Finance Minister P Chidambaram in Delhi, yesterday, the decision was taken.

The treaty would be signed soon, he added.

Mr Krecke, who was here to invite Indian entrepreneurs to invest in Luxembourg, said India's status in the world had changed over the last three years. The country, which had been attracting foreign direct investment, now had the reputation of becoming a major investors in other countries and cited the recent major acquisitions by the Mittal Group and the Tatas.

Last time, when he visited India the issue of Arcelor acquisition by Mittal Steel was in limelight and he could feel the India's response to Luxembourg's opposition to the acqusition. However, this time the meetings were most cordial, he added.

UNI