India-Israel to sign pact on double tax avoidance during prez

India and Israel will sign a double taxation avoidance pact and explore ways to ramp up engagement in diverse sectors during President Pranab Mukherjee's three-day historic visit to the Jewish state, the first by an Indian Head of State, beginning tomorrow.
Ahead of his visit, Israel said the main focus of the trip will be on "political side" though both sides will deliberate on enhancing ties in a range of areas, while calling the visit marking of a "historic political milestone."
Spokesperson in the Israeli Embassy Ohad Horsandi said the two countries will also ink a pact on cultural exchanges but a number of MoUs planned for signing during Mukherjee's "landmark visit" could not be finalised. Both sides were in talks to ink MoUs on renewable energy and water sector.

The pact on tax avoidance will help plug loopholes in tax evasion and ensure that the Indian or Israeli companies are taxed only where they have permanent establishments.
Mukherjee today arrived in Palestine after concluding his visit to Jordan. He will begin his three day-Israel visit tomorrow during which he will hold talks with President Reuven Rivlin and Prime Minister Benjamin Netanyahu among others.
"The upcoming visit of the President of India, more than being an important milestone in the relationship of the two countries, will serve to deepen the friendship between our states in the fields of economy, science, medicine, and agriculture," the Israeli Embassy quoted President Rivlin as saying.

Ohad said, "The visit marks an historic political milestone as the first such visit by an Indian president to the State of Israel, and this reflects the continued strengthening of relations between the two countries."

Asked about Mukherjee's comments in Jordan about India's support to the Palestinian cause, Ohad said he had only reiterated New Delhi position on the issue.
"I do not think there is anything new. The Indian position has been reiterated a number of times by various leaders including the External Affairs Minister. We fully respect that.
"We can only congratulate that the President made very clear distinction between Indian support to the Palestinian cause and the importance of India's relations that he sees with Israel. The two things are not inter-connected," he said.