India asks Myanmar to step up ops

The issue figured during a meeting between Myanmar’s Vice-Chairman of the State Peace and Development Council, Vice-Senior General Maung Aye and Prime Minister
Dr Manmohan Singh. The need for launching fresh offensive against the separatists was also raised at the meeting between Army Chief General Deepak Kapoor and Maung Aye, sources said.

Cooperation in security matters on the India-Myanmar border was discussed, confirmed official sources.

India and Myanmar have been engaged in joint anti-insurgency operations in the past, mostly against Manipuri rebels as well as the NSCN (K) faction. Several militant outfits of North-east including ULFA have bases in the neighbouring country.

However, Myanmar Army’s drive against the ultras had slowed down of late, leaving security agencies disappointed. A sense of urgency has now gripped New Delhi, in the face of growing belligerence of Meitei and Naga militants groups in Manipur.

Growing political turmoil in the neighbouring country has led Yangon to shift focus on its domestic front. Besides, Myanmar is unhappy over halt of weapons supply by India following international pressure following the military crackdown on Buddhist monks agitating for restoration of democracy, sources said.

The meeting between the Prime Minister and visiting Vice-Senior General was significant, as the two leaders discussed the whole gamut of issues ranging from restoration of democracy to enhancing bilateral trade. Myanmar is central to success of New Delhi’s Look East Policy.

Expressing his happiness at the signing of the Kaladan Multi-Modal Transit Transport project and other agreements, PM stressed the importance of pursuing various cross-border projects to promote greater connectivity and economic engagement between the two countries, sources said.

President, Pratibha Patil also expressed happiness at the signing of the Kaladan Multi-Modal Transit Transport project agreement. This project will greatly enhance connectivity between Myanmar and India, particularly with North-east States, she said.

The two leaders noted that more needed to be done to enhance trade between the two countries, sources said.

A number of agreements including the two protocols of the Kaladan Multi-Modal Transit Transport project and Double Taxation Avoidance Agreements (DTAA) were signed in the presence of the Vice-President and Vice-Senior General Maung Aye, last evening.

Both leaders recognised the need to cooperate closely in the hydrocarbon sector. India reiterated its commitment to support Myanmar in the telecommunication and the IT sectors.

Vice-Senior General Maung Aye called on President, Vice-President and External Affairs Minister yesterday soon after his arrival. He met the Leader of Opposition, LK Advani, this morning.

The DTAA would cover income tax and surcharge in the case of India and the income tax and profit tax in the case of Myanmar. The agreement provides that business profits will be taxable in the source state if the activities of an enterprise constitute a permanent establishment in the source state.

According to the agreement, profits of a construction, assembly or installation projects will be taxed in the state of source if the project continues in that state for 270 days or more. However, the maximum rate of tax to be charged in the country of source will not exceed 5 per cent in the case of dividends and 10 per cent in the case of interest and royalties. The agreement also incorporates provisions for exchange of information between tax authorities of the two countries and incorporates anti-abuse provisions to ensure that the benefits of the agreement are availed by the genuine residents of the two countries.

Double Taxation Avoidance Agreement with Myanmar is expected to provide tax stability to the residents of both the countries and facilitate mutual economic cooperation as well as stimulate the flow of investment, technology and services between India and Myanmar.