India, Iran sign MoU to avoid Double Taxation

Feb 19, 2018 09:51 IST
India, Iran sign MoU to avoid Double Taxation

India and Iran on February 17, 2018 signed an agreement for the Avoidance of Double Taxation (DTAA) and the prevention of fiscal evasion with respect to taxes on income.The information was shared by the Central Board of Direct Taxes (CBDT).

The agreement is on the same line as the previous agreements entered into by India with other nations.  It was signed in the presence of Indian Prime Minister Narendra Modi and Iranian President Hassan Rouhani, who arrived in India on February 15, 2018 for a three day visit.

Significance

• The pact will stimulate flow of investment, technology and personnel from India to Iran as well as from Iran to India and will prevent double taxation.

• It will also provide for exchange of information between the two contracting parties as per latest international standards.

• It will also improve transparency in tax matters and will help curb tax evasion and tax avoidance.

• 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.

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Besides this, India and Iran signed 8 other Memorandums of Understanding (MoUs) to expand cooperation between them on various matters including traditional systems of medicine, health and medicine, agriculture and postal cooperation.

The countries also signed a maritime agreement, in which Iran leased operational control of a part of the Chabahar port to India for a period of18 months.

Following is the full list of MoUs:

 

S. No.

Name of MoUs/Agreements

Description of MoU/ Agreement

Indian side

Iranian side

1.

Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on Income.

To avoid burden of double taxation between the two countries in order to promote flow of investment and services.

Sushma Swaraj, External Affairs Minister

Dr. Masoud Karbasian, Minister of Economic Affairs and Finance

2.

MoU on Exemption from Visa requirement for holders of Diplomatic Passports.

Waiver of requirement of visa for the travel of diplomatic passport holders in each country.

Sushma Swaraj, External Affairs Minister

Dr. Mohammad Javad Zarif, Minister of Foreign Affairs

3.

Exchange of Instrument of Ratification of Extradition Treaty.

It brings into effect the Extradition Treaty signed between India and Iran in 2008.

Sushma Swaraj, External Affairs Minister

Dr. Mohammad Javad Zarif, Minister of Foreign Affairs

4.

Lease Contract for Shahid Beheshti Port- Phase 1 of Chabahar during Interim Period between Port and Maritime Organization (PMO), Iran and India Ports Global Limited (IPGL).

Leasing of a part of the area of the multipurpose and container Terminal for a term of one and half solar year (18 months) to take over operation of existing port facilities.

Nitin Gadkari, Minister of Shipping

Dr. Abbas Akhundi, Minister of Road and Urban Development

5.

MoU on Cooperation in the field of Traditional Systems of Medicine.

To develop and strengthen cooperation in traditional systems of medicine including regulation of teaching, practice, drugs and drugless therapies; facilitating supply of all medicine materials and documents; exchange of experts for training of practitioners, paramedics, scientists, teaching professionals and students and accommodating them in institutions for research, educational and training programmes; mutual recognition of pharmacopoeias and formularies; setting up of academic chairs; provision of scholarships; recognition of traditional preparations on reciprocity basis; permission to practice on reciprocity basis.

Vijay Gokhale, Foreign Secretary

H.E. Gholamreza Ansari, Ambassador of Iran

6.

MoU on the establishment of an Expert Group on Trade Remedy Measures to promote cooperation in areas of mutual interest.

It aims to establish a framework of cooperation in the area of Trade Remedial Measures viz. anti-dumping and counterveiling duty.

Rita Teotia, Secretary (Commerce)

Dr. Mohammad Khazaei, Deputy Minister of Economic Affairs and Finance

7.

MoU on Cooperation in the field of Agriculture and Allied Sectors.

Bilateral cooperation in the field of agriculture and allied sector including joint activities, programmes,exchange of information and personnel; cooperation in the field of agricultural crops, agricultural extension, horticulture, machinery, post harvest technology, plant quarantine measures, credit and cooperation, soil conservation, seed technology, livestock improvement, dairy development.

SK Pattanayak, Secretary (Agriculture)

Dr. Mohammad Khazaei, Deputy Minister of Economic Affairs and Finance

8.

MoU on Cooperation in the field of Health and Medicine.

To establish comprehensive inter-ministerial and inter-institutional cooperation between two sides including pooling of technical, scientific, financial and human resources; upgrading the quality and reach of human, material and infrastructural resources in healthcare, medical education, research and training; exchanging experience in training of medical doctors and other health professionals; assistance in development of human resources and setting up of health care facilities; regulation of pharmaceuticals, medical devices and cosmetics and exchange of information thereon; cooperation in medical research; cooperating in public health, Sustainable Development Goals (SDGs) and international health.

Vijay Gokhale, Foreign Secretary

H.E. Gholamreza Ansari, Ambassador of Iran

9.

MoU on Postal Cooperation.

Cooperation between the two postal agencies including exchange of experience, knowledge and technology in e-commerce/logistics services; cooperation on philately; establishment of working group of experts; feasibility studies on using air and surface transit capacities of both countries.

Anant Narayan Nanda, Secretary (Post)

H.E. Gholamreza Ansari, Ambassador of Iran

Further, following agreements were signed between the trade bodies of the two nations on the sidelines of Iranian President’s visit:

1. MoU between EEPC India and Trade Promotion Organization of Iran.

2. MoU between Federation of Indian Chambers of Commerce & Industry (FICCI) and Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA).

3. MoU between the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and the Iran Chamber of Commerce, Industries, Mines & Agriculture (ICCIMA).

4. MoU between PHD Chamber of Commerce and Industry (PHDCCI) and Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA)

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