Double Tax Avoidance Agreement With Nepal

The Finance Minister, Mr. Pranab Mukherjee has said India stands by the efforts of the Nepalese people and government to logically conclude the peace process and finalise the drafting of the constitution leading to a multi-party democracy. Addressing a press conference after signing of the Double Tax Avoidance Agreement (DTAA) in Kathmandu on 27 Nov 2011, Mr Mukherjee said India wants the peace process and drafting of the constitution to be finalized, so that he people of Nepal can have an effective multi-party democracy. He expressed confidence that the peace process will come to it’s logical end and stated that India stand by the efforts of the people and government of Nepal.

On the Double Tax Avoidance Treaty Agreement, the Finance minister said this revised agreement allows for effective exchange of information, assistance in collection of taxes between tax authorities. He said along with the Bilateral Investment Protection and Promotion Agreement that was signed during Nepal’s Prime Minister’s visit to India, should help to boost investment, trade and economic activities between the two countries.

Mr. Mukherjee said that following the visit of Prime Minister of Nepal, steps have been taken to strengthen bilateral the Joint Commission of Water resources was held in New Delhi recently. The Bilateral Joint Commission is also to be convened in order to review the entire gamut of bilateral relationship. This will include requests from Nepal for Indian Assistance for implementation of priority development projects.