NEW DELHI, Jan 28: India and Oman have reached an agreement to modify the Double Taxation Avoidance Agreement (DTAA) to bring it in line with international standards for cross-border taxation. This initiative aims to streamline procedures and enhance collaboration in tax matters, as stated in an official announcement on Tuesday.
A protocol to revise the India-Oman DTAA was signed during the visit of Commerce and Industry Minister Piyush Goyal to Muscat.
The original treaty was enacted in 1997.
The amendment protocol was signed to ensure that the India-Oman DTAA aligns with global standards regarding cross-border taxation, simplifies tax processes, and fosters increased cooperation in tax issues,” noted the commerce and industry ministry.
Both nations have also agreed to hasten discussions for the swift signing of the proposed free trade agreement, which is currently being negotiated.
Goyal was in Muscat for the India-Oman Joint Commission Meeting (JCM) alongside Oman’s Minister of Commerce, Industry, and Investment Promotion Qais bin Mohammed Al Yousef.
The two ministers deliberated on a bilateral India-Oman Comprehensive Economic Partnership Agreement (CEPA), which is nearing the advanced negotiation phase,” it added.
The aim of the pact is to enhance two-way trade and investments.
Discussions regarding the agreement, officially known as the Comprehensive Economic Partnership Agreement, commenced in November 2023.
In these agreements, the trading partners generally either significantly reduce or abolish customs duties on most goods traded between them. Additionally, they facilitate regulations to support trade in services and attract investments.
Oman ranks as the third largest export destination for India among Gulf Cooperation Council (GCC) countries. India has a similar agreement with another GCC member, the UAE, which became effective in May 2022.
Bilateral trade has dipped to USD 8.94 billion (exports USD 4.42 billion and imports USD 4.5 billion) in 2023-24, down from USD 12.39 billion (exports USD 4.47 billion and imports USD 7.91 billion) in 2022-23. (PTI)
