Double taxation avoidance agreement to boost trade between India and Iran

India and Iran on Saturday signed an agreement for Avoidance of Double Taxation and Prevention of Fiscal Evasion with regard to taxes on income.

The agreement is on similar lines as entered into by India with other countries, the Central Board of Direct Taxes (CBDT) said in a statement.

India and Iran signed in New Delhi today an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income. https://t.co/XPdj7qHrov pic.twitter.com/rZtyiwLeJC

— PIB India (@PIB_India) February 17, 2018

"The agreement will stimulate flow of investment, technology and personnel from India to Iran and vice versa, and will prevent double taxation," the statement said.

The pact provides for exchange of information between the two nations as per latest international standards.

"It will improve transparency in tax matters and will help curb tax evasion and tax avoidance," the statement said. "The agreement also meets treaty related minimum standards under G-20 OECD Base Erosion and Profit Shifting (BEPS) Project, in which India participated on an equal footing."

First visit by an Iranian President in 10 years! Ceremonial welcome accorded to President of Iran, Dr. Hassan Rouhani @rashtrapatibhvn. President Ram Nath Kovind and PM @narendramodi welcomed President Rouhani. #DustemanIran pic.twitter.com/OkjyIsapQ2

— Raveesh Kumar (@MEAIndia) February 17, 2018

Earlier in the day, addressing industry association Ficci, Iran Economic Affairs and Finance Minister Masoud Karbasian invited Indian business to invest in Iran and take advantage of the rapid economic growth of the country.

"We hope that through signing basic economic and trade agreement such as the avoidance of double tax, supporting joint venture plans as well as preferential tariff would enable companies to enter Iran with fewer obstacles," he said.

Watch LIVE: Ceremonial Reception of the President of Iran, Dr Hassan Rouhani, at Rashtrapati Bhavan https://t.co/2B9QIkQQpC

— President of India (@rashtrapatibhvn) February 17, 2018

"In view of the positive outcome of the nuclear deal, Iran has started to gather momentum...We have set 8 per cent economic growth target," he said.

Citing various advantages of Iran, he said, the country has been a safe provider for Indian petroleum companies for importing petrochemical products.

Chabahar is the symbol of multilateral transit cooperation, he said, adding that it is also a golden opportunity for investment for Indian corporates in the field of petrochemicals.