The Cypriot Government has said it is in direct contact with the Indian Government to clarify and resolve the situation arising out of the recent Central Board of Direct Taxes move.

The CBDT had earlier this month notified Cyprus as a non-cooperative jurisdiction.

This move has affected business communities in both countries, the Cypriot Government said.

Cyprus said that the existing double taxation avoidance agreement has not been terminated.

It has also reiterated its commitment for holding direct negotiations with the Indian Government for finalising the long pending review of the double tax treaty between Cyprus and India.