India has notified the revised double tax avoidance agreement, DTAA with South Korea. The revised DTAA aims at avoiding the burden of double taxation for taxpayers of two countries in order to promote and thereby stimulate flow of investment, technology and services between India and Korea. An official release said, it will provide tax certainty to the residents of the two countries.<br/><br/>To promote cross border flow of investments and technology, it also provides for reduction in withholding tax rates from 15 per cent to 10 per cent on royalties and from 15 to 10 per cent on interest income.<br/><br/>The treaty also allows investors to invoke Mutual Agreement Procedure (MAP) in transfer pricing disputes as well as apply for bilateral Advance Pricing Agreements. The release said, provisions of new DTAA will have effect in India in respect of income derived in fiscal years beginning on or after 1st of April, 2017.The revised DTAA was signed in May last year during the visit of Prime Minister Narendra Modi to Seoul.