Double taxation avoidance accord signed
India assures Nepal of strong support to its transition to stable future
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KATHMANDU, NOV 28 -
Nepal and India on Sunday signed the Double Taxation Avoidance Agreement (DTAA) replacing the old one signed between the two countries in 1987. The agreement is aimed at facilitating exchange of information on banking between the two countries and helping them prevent tax evasion.
Finance Minister Barsaman Pun and his Indian counterpart Pranab Mukherjee, who arrived in Kathmandu on a daylong visit, signed the agreement that was already discussed and agreed upon during Prime Minister Baburam Bhattarai’s official visit to India about a month ago.
“The DTAA was planned to be signed during Nepali Prime Minister’s visit to India,” said Mukherjee after signing the accord. “But, it could not take place as Indian Cabinet had not endorsed the proposed DTAA.” He said that he visited Nepal to sign the agreement as committed during Bhattarai’s India visit.
The agreement, among other things, will end the need for Indian investors to pay taxes back home on repatriation of income once they pay taxes in Nepal.
The special provision in the agreement on exchange of banking information is expected to help Nepal deal with capital flights and take action against the tax evaders who fled to India to escape Nepal’s law.
After signing the deal, the Indian finance minister held talks with top leaders of the major political parties.
During the talks, Mukherjee congratulated the leaders for striking the important seven-point deal, which he said, was a firm basis for successfully concluding the remaining aspects of Nepal’s peace process.
“I assure the Nepalese leaders of India’s strong and continued support to Nepal in its transition to a democratic, prosperous, peaceful and stable future,” said Mukherjee in a
statement.
He held one-on-one talks with Nepali Congress President Sushil Koirala and met NC leaders including Sher Bahadur Deuba, Ram Chandra Poudel, Prakash Man Singh and Krishna Prasad Sitaula during a luncheon at Hotel Dwarika’s.
In the meeting with the NC president, Mukherjee expressed concern over the intra-party rift in the NC and asked about the party’s position on the peace and constitution-writing processes.
“He stressed forging political consensus as early as possible for a timely conclusion of the peace and statue-writing processes,” NC President Koirala said after the meeting. In the meeting, NC leaders also claimed they would lead the new government after completion of the peace process.
Maoist Chairman Dahal also held one-on-one talks with Mukherjee for 20 minutes but the details of the meeting were not divulged. UML Chairman Jhala Nath Khanal and former Prime Minister Madhav Kumar Nepal, however, did not go to meet Mukherjee despite a schedule. It was told that Nepal was bedridden and Khanal was busy in a three-party meeting.
Mukherjee also held talks with leaders from Madhes-based parties at the hotel.
During the meeting with the Indian finance minister, the Madhesi leaders expressed their opinions on current state of politics.
They told Mukherjee that the peace process was moving towards a positive direction but a section of the Maoists had been opposing the move of returning the seized property.
Deputy Prime Minister Bijaya Kumar Gachhadar said Mukherjee advised the Madhesi parties to come together on issues of Madhes and hailed that Madhesi and other three major parties were coming closer on Madhes issues.
Posted on: 2011-11-28 08:49
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