India and Japan on Monday held talks to revise their tax treaty in a move to facilitate bilateral business investment, officials said in Tokyo.
The talks were aimed at avoiding double taxation and paving way for concluding a free trade agreement between the two countries.
Under double taxation, a company or individual pays tax to two jurisdictions.
"A tax treaty revision would greatly help enhance the economic relationship between the two countries," Susumu
Fakuda, Director General of the Japanese Finance Ministry's tax bureau was quoted as saying by Kyodo news.
A tax cut on dividends will be among items to be discussed, the officials said.
Japan was represented at the meeting by officials from the finance ministry, the foreign ministry and the National
Tax Agency. The Indian delegation was led by Dikshit Prasad Sengupta, chief of the finance ministry's Department of Revenue.
The treaty went into force in 1960 and was revised in 1989.
