India, Romania sign amended DTAA

The DTAA between India and Romania is in force since November 14, 1987.

Updated: Mar 08, 2013, 18:35 PM IST

New Delhi: India and Romania today inked the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income to bring in change in domestic laws in line with international standards.

The pact was signed after External Affairs Minister Salman Khurshid held talks with his Romanian counterpart Titus Corlatean on the entire gamut of bilateral relations, regional and international issues of mutual interest here.

The DTAA between India and Romania is in force since November 14, 1987.

"Both India and Romania have renegotiated the agreement to bring in line with international standards, change in domestic laws and changed economic scenario. Once the amended agreement enters into force, it will stimulate the flow of capital, technology and personnel from India to Romania and vice versa.

"It also provides tax stability and reduces any obstacles in providing mutual cooperation between India and Romania," the Ministry of External Affairs said.

Bilateral trade between India and Romania stood at only USD 726.6 million in 2011-12. Both the countries trade mainly in sectors like pharmaceuticals, iron and steel, engineering, chemicals and textiles.

India has received FDI worth USD 4.45 million during April 2000 and December 2012 from Romania.

The two sides also signed a document to enhance political dialogue, more frequent inter-governmental exchanges, heightened Parliamentary contacts and a more dynamic civil society interaction.

It also aims to further deepen political, economic and commercial ties between the two countries and enhanced cooperation in all fields including S&T, higher education and research, defence, civil nuclear energy, space and agriculture.