Mukherjee said India welcomed the 7-point agreement and remained interested in the “success of Nepal`s transition to multi-party democracy and the completion of the peace process.” “India is committed to supporting the government and people of Nepal in these processes of historic change in Nepal.” “Today`s agreement is aimed at meeting the fiscal demands of the Nepalese government and the government of the People`s Republic of Bangladesh. It would also eliminate double taxation, the promotion of bilateral trade, people, services and capital investment,” the finance ministry said in a statement on Tuesday. 1. For the purposes of this arrangement, “resident of a contracting state” means any person subject to tax under that state`s legislation because of his place of residence, place of residence, residence or other similar criteria. 2. If, under paragraph 1, a person resides in the two contracting states, his position is determined as follows: (a) he is considered a resident of the state in which he has a permanent home; if he has a permanent homeland in both states, he is considered a resident of the state where his economic activities are concentrated; (b) if he has no permanent housing in either state, he is deemed to reside in the state in which he has his usual residence; (c) if he has a habitual residence in either or any of them, he is considered a resident of the state where his economic activities are concentrated; (d) In the event of a dispute, the competent authorities of the contracting states resolve the matter by mutual agreement. 3. If, under paragraph 1, a person other than a person resides in the two contracting states, he or she is considered a resident of the state where his or her place of effective administration is located. Her Majesty`s Government in Nepal and the Government of the Republic of India, with the aim of concluding an agreement to avoid double taxation and prevent income tax evasion; 1. Nationals of a contracting state may not be subject, in the other contracting state, to a tax or related obligation that is heavier or heavier than the tax and related requirement to which the nationals of that other state are or may be subject in the same circumstances.