The government on Wednesday notified Double Taxation Avoidance Agreement (DTAA) with the government of Mozambique for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income on 31st May this year.In a statement, the Central board of Direct Taxes said, the DTAA provides that business profits will be taxable in the source country if the activities of an enterprise constitute a permanent establishment in the source nation. Dividends, interest and royalties income will be taxed both in the country of residence and in the country of source. The agreement further incorporates provisions for effective exchange of information and assistance in collection of taxes between tax authorities of the two countries in line with internationally accepted standards, including exchange of banking information.The agreement will also provide tax stability to the residents of India and Mozambique and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between both the countries.