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Monday, November 28, 2011

INDIA, NEPAL SIGN REVISED DOUBLE TAXATION AVOIDANCE PACT

INDIA, NEPAL SIGN REVISED DOUBLE TAXATION AVOIDANCE PACT

India and Nepal today inked a revised double taxation avoidance agreement (DTAA) that would, among other things, facilitate sharing of banking information between two countries for better tax administration purposes. The revised DTAA was signed by the Finance Minister, Mr Pranab Mukherjee, and his Nepalese counterpart, Mr Barsaman Pun, at Kathmandu. 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 the two countries. In the revised DTAA, the threshold withholding tax rates on dividends, interest etc are rationalised to reflect the present day situation and developments in the area of international taxation, Mr Mukherjee said in Kathmandu today. It also provides that the information received can be shared with other law enforcement agencies with the consent of the information supplying country. - www.thehindubusinessline.com

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