A-1 Double taxation avoidance agreement treaty mens a treaty which explains about the taxation procedures in case a company is earning money from two or more countries. It explains the agreements between the two countries in case double taxation occurs. It also provides the relief provisions provided to the companies. Through this treaty taxation of non-residents tooks place. The source country’s tax rate or the rate mentioned in the double taxation avoidance agreement , which ever is more beneficial to an assessee can be applied by that assessee.