DTAA with Nepal will help strengthen bilateral ties:FM

Kathmandu: India`s Finance Minister Pranab Mukherjee today said Double Taxation Avoidance Agreement (DTAA) with Nepal will help strengthen bilateral ties and further expand trade and economic activities.

"I am confident that this mechanism will strengthen and deepen our bilateral relations, and we would be in a position to move forward and expand our trade and other economic activities", Mukherjee told reporters at Tribhuvan International Airport upon his arrival this morning.

Mukherjee and his Nepalese counterpart Barsha Man Pun will sign the DTTA, which will replace the previous agreement signed in 1987. "The agreement reflects the international environment, which is prevalent today and the old agreement needs to be amended," he said.

Mukherjee said that he is confient that the visit will further strengthen bilateral relationship between the two countries. He will call on President Ram Baran Yadav, apart from meeting Nepalese Prime Minister Baburam Bhattarai and other senior political leaders here.

He will also hold separate meeting with Pun before wrapping up his day long visit to Nepal.

The two Finance Ministers will also exchange views on the further development of bilateral relations and review the progress on implementation of the action plan agreed upon during the last visit of the Prime Minister of Nepal to India on October 21, 2011.

Till date India has signed DTAA with 81 countries and Tax Information Exchange Agreements (TIEAs) with five jurisdictions. It has concluded negotiations with 17 jurisdictions for signing of TIEA.

Of the 81 DTAAs, 75 do not have specific paragraph for exchange of banking information. All these 75 DTAAs have been picked up for renegotiation. Renegotiations have been completed in 22 cases.

India had already signed a revised tax agreement with Switzerland. Under this pact, both the countries would share banking and tax-related information with each other.