KATHMANDU, NOV 27 – Nepal and India on Sunday signed the Double Taxation Avoidance Agreement (DTAA).
The agreement, which replaces the old agreement signed between the two countries in 1987, is aimed at facilitating exchange of information on banking between the two countries and help prevent tax evasion.
Finance Minister Barsha Man Pun and his Indian counterpart Pranab Mukharjee signed the agreement in the presence of Prime Minister Baburam Bhattarai at the PM’s official residence in Baluwatar.
Mukherjee, who arrived here in the Capital at around 11 this morning for a one-day visit, went straight to the Finance Ministry at Singha Durbar.
“The revised DTAA will provide tax stability to the residents of India and Nepal and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Nepal,” said the Mukherjee during his opening remarks.
Indian Foreign Secretary Ranjan Mathai had arrived in Kathmandu on Saturday to make preparations for Mukherjee’s visit to sign the DTAA.
During his stay in Kathmandu, Mukherjee is scheduled to meet President Dr. Ram Baran Yadav, Prime Minister Baburam Bhattarai, and Pun. Sources close to Mukherjee said he would meet top leaders, including UCPN (Maoist) Chairman Pushpa Kamal Dahal, Nepali Congress President Sushil Koirala and CPN-UML Chairman Jhala Nath Khanal.