India and the Philippines today agreed to revise the double tax avoidance agreement (DTAA)

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by January next year, with a view to facilitating exchange of information on banking and tax-related matters.

The issue was discussed at a meeting between Finance Minister Pranab Mukherjee and his counterpart from the Philippines Cesar V Purisima.

Negotiations are already on for revising the Convention between the two countries for avoidance of double taxation and prevention of tax evasion, a finance ministry statement said.

"There is a need for transparent arrangement with a legal framework for exchange of information between India and the Philippines relating to banking and tax-related matters," Mukherjee said.

He hoped that the revised DTAA will be signed in January next year.

Purisima said his country would work to expedite the finalisation of revised DTAA between the two countries.

Mukherjee said India is keen to strengthen banking links between the two countries. Country's largest lender State Bank of India (SBI) has already proposed to open a branch in the Philippines Capital Manila.

"India would welcome a conducive environment for stronger banking links between the two countries," Mukherjee said.

He also appreciated the operationalisation of the India-ASEAN FTA on trade in goods with effect from June, 2011.

He said there is a steady growth in bilateral trade which increased from $ 443.63 million in 2003-04 to $ 1,061.84 million in 2009-10.