India and Iran signed nine agreements, including an Agreement for the Avoidance of Double Taxation (DTAA) and the Prevention of Fiscal Evasion with respect to taxes on income.
The Agreement is on similar lines as entered into by India with other countries.
The Agreement will stimulate flow of investment, technology and personnel from India to Iran& vice versa, and will prevent double taxation, an official release said.
The Agreement will provide for exchange of information between the two Contracting Parties as per latest International Standards. It will 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 & Profit Shifting (BEPS) Project, in which India participated on an equal footing.
According to a joint statement issued following the talks, with a view to fully utilise the potential of the Chabahar port and its connectivity to Afghanistan and Central Asia, India conveyed its readiness to support the development of Chabahar- Zahedan Rail line.
“IRCON, India, and CDTIC, Iran, who are engaged in discussions, were tasked to finalise the technical parameters and financing options for the project in a time bound manner,” the statement said.
“Both leaders encouraged greater efforts for cooperation in railway sector including supply of steel rails, turnouts and locomotives.”
The two sides also reiterated their commitment to the International North- South Transport Corridor (INSTC) and stressed on the need for inclusion of Chabahar within its framework.
“It was noted that Iran will hold an early meeting of the INSTC Coordination Meeting in Tehran. India’s accession to TIR Convention and Ashgabat Agreement was welcomed as additional steps at enhancing regional connectivity and linking regional centres of economic growth,” the statement said.
In June last year, India became the 71st country to ratify the UN Transports Internationaux Routiers (TIR) or International Road Transport Convention.
Earlier this month, India was admitted to the Ashgabat Agreement which seeks to establish an international transport and transit corridor between Iran, Oman, Turkmenistan and Uzbekistan.
India and Iran also signed an agreement for the avoidance of double taxation to promote flow of investment and services between the two countries.
According to the joint statement, the two sides agreed to undertake text-based negotiations on preferential trade agreement as well as conclusion of a bilateral investment treaty in a fixed time frame.
An extradition agreement signed by the two countries in 2008 also came into effect following the exchange of instrument of ratification on Saturday.
Six other memorandums of understanding (MoUs) were signed including on cooperation in the areas of health, traditional systems of medicine, and agriculture and allied sectors, and establishment of an expert group on trade remedy measures.