India has signed an international tax treaty for getting informaltion on black money stashed abroad.The country has become the latest signatory to the multilateral convention on mutual administrative assistance in Tax matters.

AIR correspondent reports, the multilateral instrument is the single legal basis for multi-country cooperation, as against other treaties including the Double Taxation Avoidance Agreement, which are bilateral.
The convention not only facilitates the exchange of information, but also provides for assistance in the recovery of taxes.

This will give a fillip to the efforts of the government in bringing money illegally stashed abroad. By signing the convention, India and the other 31 signatories send a strong signal that countries are acting together to ensure that individuals and multinational enterprises pay the right amount of tax, at the right time and in the right place.

The convention allows tax officials to enter into the territory of the other country to interview individuals and examine records. The information received under the convention can also be used for other purposes besides those related to tax co-operation, including the countering of money laundering with the approval of the supplying state.

Out of the 31 signatories, 12 have ratified the convention so far. The signatories to the convention include Brazil, France, Germany, Indonesia, Japan, Russia, Turkey, the UK and the US.

The instrument was earlier available only for members of the Organisation for Economic Cooperation and Development and the Council of Europe. It was amended in 2010 and thrown open to all countries from last June.