Nepal and India signed the Double Taxation Avoidance Agreement (DTAA), replacing the old Agreement signed in 1987 here at Prime Minister's Office, Singha Durbar on Sunday.

Finance Minister Barsha Man Pun and his Indian counterpart Pranab Mukherjee signed the agreement in the presence of Prime Minister Baburam Bhattarai this afternoon.

The Indian Finance Minister had arrived in Kathmandu few hours earlier to sign the agreement to avoid double taxation between Nepal and India. The agreement couldn't be signed during the October India visit of PM Bhattarai.

During his brief stay, Mukherjee will meet President Ram Baran Yadav and Prime Minister Baburam Bhattarai. He will also be meeting top leaders, including Maoist party Chairman Pushpa Kamal Dahal, Nepali Congress President Sushil Koirala and CPN (UML) Chairman Jhala Nath Khanal.

Mukherjee is set to fly back from Kathmandu at around 8:30 pm in the evening. nepalnews.com

Â