New Delhi, February 8:

India today signed a double tax avoidance convention with Serbia and Montenegro — the former Yugosla-via — which pr-ovides for moderate rates of taxes on certain categories of income. The moderate tax rates will be in line with the recent treaties between the two countries to promote bilateral trade and investment, an official statement said.

The convention — to be implemented soon — will cover income tax, surcharges and wealth tax in the case of India, and profit tax, income tax, capital tax and revenue tax on overseas transport in the case of Serbia and Montenegro.

Indian finance minister P Chidamb-aram signed the pact on behalf of India, while Serbia and Mo-ntenegro’s international econo-mic relations minister Prof Predrag Ivano-vic inked it on behalf of his country.

Apart from providing for avoidance of double taxation, the convention also calls for exchange of information and an agreement on procedures to resolve any issue regarding its application. India has double taxation avoidance accord with 69 countries.