New Delhi, Nov 15 : The Union Cabinet today gave its approval for signing of the Agreement between India and Iceland for Avoidance of Double Taxation and prevention of Fiscal Evasion with respect to taxes on income.

The Agreement will stimulate the flow of capital, technology and personnel from India to Iceland and vice-versa. It will provide tax stability and reduce any obstacles in providing mutual cooperation.

The Cabinet today also gave its approval for ratification of International Tropical Timber Agreement, 2006 (ITTA).

As India is a member country of the (International Tropical Timber Organisation (ITTO), the ITTA, 2006 would help in India's contribution to the international trade in tropical timber and will generate goodwill to the country and enhance the status of India on the world forestry map under the aegis of this UN Organization, a release issued by the Government claimed.

The Agreement is to enter into force on February 1, 2008. (ANI)