India and Nepal Signed Revised DTAA

             

India and Nepal signed a revised Double Taxation Avoidance Agreement (DTAA), which will facilitate exchange of information on banking between these two countries and help to prevent tax evasion.

                Finance Minister Mr. Pranab Mukherjee and his Nepalese counterpart Mr. Barsha Man Pun signed the revised tax treaty, which will replace the 1987 treaty, in the Nepalese capital.

                The agreement, among the other things, will facilitate exchange of information on banking between the two countries and will exempt Indian investors and traders from paying tax in India once they pay taxes in Nepal.

               India is the largest source of foreign investments in Nepal and the bilateral trade between the two countries is estimated to be $ 2.7 billion in 2010-11.