<h1>India and Lithuania Ink First Double Taxation Avoidance Pact, Boosting Economic Cooperation and Investment Flows.</h1> India and Lithuania have signed an Agreement and Protocol for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion regarding taxes on income and capital. This marks the first such agreement between India and a Baltic country. The agreement specifies that business profits will be taxed in the source state if there is a permanent establishment. It includes provisions for fixed place, construction, service, and agency permanent establishments. The agreement also addresses transfer pricing, sets low withholding tax rates, and ensures effective information exchange. It aims to enhance economic cooperation and investment flows between the two nations.