Page 630 - SSB Interview: The Complete Guide, Second Edition

3. Both sides have also signed an agreement to recognise three more
nursing institutions in addition to the present list of four, which will

facilitate the practice of more Indian nurses in Singapore.

4. The second review has expanded tariff concessions for an additional 30

products to take CECA to the level of the ASEAN-India Free Trade
Agreement. These new preferential tariffs apply to a variety of sectors,

including food (sweet biscuits, curry paste and chilli sauce) and nylon
moulding powder. It has also improved rules of origin to provide more

flexibility for Singapore’s exports into India.

Benefits of CECA for India

CECA involves tariff reduction/elimination in a phased manner on listed/all

items except the negative list and tariff rate quota (TRQ) items. The aim of
the Agreement is to enhance economic and social benefits, improve living
standards and ensure high and steady growth in real incomes in their

respective territories by the expansion of trade and investment flows.

Signed in 2005, CECA is the cornerstone of trade and investment ties
between Singapore and India. CECA widened the scope of business between

India and Singapore. It clarifies taxation rules and opens up market access in
a variety of manufacturing, services and financial sectors. It also creates clear
provisions for dispute resolution and encouraged the cross-border movement

of people. Some of the benefits of CECA are discussed below:

CECA updates and expands the 1994 Double Taxation Avoidance

(DTA) agreement. The agreement gives Singapore residents exemption
under which capital gains can be remitted to Singapore free of Indian

withholding tax. However, there are conditions to this exemption.

Companies whose operations exist to take advantage of the DTA
benefits are ineligible.

CECA enables Indian companies to access Singapore’s capital markets

to raise capital through a variety of financial instruments. For example,