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Procedural clause threw spanner on DTAA: Indian envoy

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KATHMANDU, Nov 1: Nepal and India could not sign the Double Tax Avoidance Agreement (DTAA) due to a procedural clause in the already agreed text of the agreement, said Indian Ambassador to Nepal Jayanta Prasad, adding the Indian finance minister will come to Nepal to ink the agreement as soon as the text is finalized.



The agreement was supposed to be signed during the recently visit of Prime Minister Dr Baburam Bhattarai to India as the Nepal government had endorsed the agreement on the eve of the prime minister´s four-day visit. [break]But the agreement could not be signed as the two countries could not finalize the text of the agreement during the visit.



Indian Ambassador Jayanta Prasad told media persons at Reporters´ Club Nepal that Nepali and Indian officials could not finalize paragraph 4 of Article 30 of the agreement during the prime minister´s visit.



Though officials of both the countries had agreed on the text of the agreement some seven months ago, India had proposed an additional clause four days before the prime minister´s visit.



This had prompted Nepal to seek yet another clause in the agreement. The prime minister was on India visit from October 20-23.



Prasad, who arrived in Nepal as new Indian envoy two months ago, said Indian Finance Minister Pranab Mukherjee will come to Nepal to sign the agreement as soon as the text is finalized.



Saying that trade issues and trade facilitation are major issues relating to Nepal-India relations, the Indian ambassador said India will do its utmost to improve trade access to Nepal.







Questioned about the low-profile reception accorded to the prime minister in New Delhi, the Indian ambassador said Dr Bhattarai was warmly welcomed in India.



“I think the entire political affairs committee received Dr Bhattarai during official talks in the Hyderabad House,” said the Indian envoy.



Chief of Protocol of India had received Bhattarai at the Indira Gandhi International Airport though previous prime ministers of Nepal were welcome by state ministers.



Asked why there has not been any high-level visit from India over the last 14 years though as many as four Nepali prime ministers have visited India in the last five years, Prasad said, “This is an unnatural state of affairs.”



In a separate query, the Indian ambassador said India is open to updating the 1950 treaty.



When asked to comment on the trouble that Nepalis coming from India face on Nepal-India border, the Indian envoy said he has taken the issue seriously and is visiting Nepal-India border to know the situation.



He also promised to address the problem during his tenure as ambassador to Nepal.



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