India, Korea agree to early implementation of revised tax pact

India and South Korea today concluded negotiations on revising the bilateral double taxation avoidance pact and agreed to implement it soon.
After talks with visiting South Korean President Park Geun-hye, Prime Minister Manmohan Singh said talks on the Double Taxation Avoidance Convention (DTAC) have concluded.
The two leaders welcomed the revised accord and agreed to put it into effect early, according to a joint statement.
"We have just concluded wide-ranging discussions on matters of bilateral interest and regional and global importance. This has enabled us to impart further substance, greater content and new momentum to the Strategic Partnership between our two countries," Singh said at a media event with Park.

The leaders agreed to set up a joint trade and investment promotion committee at the cabinet level as an expanded and restructured replacement of the current joint investment promotion committee.
They reaffirmed the need to increase investment and trade in goods and services by upgrading the Comprehensive Economic Partnership Agreement, which had contributed to enhancing economic ties between the two countries.

"To this end, the trade ministers of both sides will meet in the first half of this year in Seoul," it added.
Noting that the expansion of mutual investment will contribute to economic growth, the statement said the leaders agreed to nurture a favourable environment for investors from both countries.

They welcomed the possibility of establishing a Korean industrial park in Rajasthan and recent initiatives, including cooperation between India Infrastructure Financing Company and Export-Import Bank of Korea and a proposed USD 200 million interbank export credit line between the State Bank of India and the Exim Bank of Korea.
Both sides agreed to establish a CEOs forum that would be mandated to submit a report on enhancing economic cooperation.