Economica

    Double Taxation Avoidance Agreement     Example citing the working of DTAA: An NRI individual living in X country maintains an NRO account with a bank based in India. The interest income on the balance amount in the NRO account is deemed as income that originates in India and hence is taxable in India. DTAA In case, India and X nation are contracted under the DTAA, this income will have tax implications in accordance with the rate specified in the agreement. Otherwise, the interest income will attract tax @ 30.90 % i.e. the current withholding tax. Also, NRI is entitled to avail the benefits under the provisions of DTAA between India and his country of residence with respect to interest income on government securities, company fixed deposits, dividend and loans.    Entitlement to benefits under DTAA requires submission of certain documents:  To be entitled to the benefits laid down under the provisions of the DTAA, NRI individual needs t...

         Bilateral Investment Treaty   A bilateral investment treaty (BIT) is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in another state. This type of investment is called foreign direct investment (FDI). BITs are established through trade pacts. A nineteenth-century forerunner of the BIT is the friendship, commerce, and navigation treaty (FCN).[1] Most BITs grant investments made by an investor of one Contracting State in the territory of the other a number of guarantees, which typically include fair and equitable treatment, protection from expropriation, free transfer of means and full protection and security. The distinctive feature of many BITs is that they allow for an alternative dispute resolution mechanism, whereby an investor whose rights under the BIT have been violated could have recourse to international arbitration, often under the auspices of the ICSID (International Cente...

        Asian Infrastructure Investment Bank     The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank that aims to support the building of infrastructure in the Asia-Pacific region. The bank currently has 69 members as well as 24 prospective members from around the world [7]. The bank started operation after the agreement entered into force on 25 December 2015, after ratifications were received from 10 member states holding a total number of 50% of the initial subscriptions of the Authorized Capital Stock.[8]The United Nations has addressed the launch of AIIB as having potential for "scaling up financing for sustainable development"[9] and to improve the global economic governance.[10] The starting capital of the bank was $100 billion, equivalent to 2⁄3 of the capital of the Asian Development Bank and about half that of the World Bank.[11]The bank was proposed by China in 2013[12] and the initiative was launched at a ceremony i...

                   The Lewis Model       In this article we will try to understand about the 'Dual Sector Model' proposed by Arthur Lewis. The model depicts the labour surplus and it's allocation with respect to the two sectors in economy. This mode is also known as 'Two Sector Model' because Lewis analysis is based on two sector economy namely subsistence agricultural sector and capitalist manufacturing sector and the transition of labor between them.  I] Introduction   According to Arthur Lewis, " The dual sector model" is a theory of development in which surplus labor from traditional sector transferred to the modern industrial sector (capitalist sector) whose growth over a time absorbs surplus labor promotes industrialization & stimulates sustained development.  A] Capitalist Sector -   Lewis defines this sector as "that part of economy which uses reproducible capital & pays c...