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Agreement between a Newspaper Publisher and an Advertising Agency for Securing Advertisements ADVERTISING AGREEMENT THIS AGREEMENT made at……………..on this……………..day of……………..20………... Between: M/s. ………………………..., a company incorporated under the Companies Act, 1956 and having its registered office at ......... hereinafter called "the company", (which expression, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of the FIRST PART And M/s. ………………………..., a company incorporated under the Companies Act, 1956 and having its registered office at………….. here in after called "the advertising agency" (which expression, unless it be repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of the OTHER PART. WHEREAS the company publishes a newspaper……………..hereinafter referred to as "the said newspaper" an English daily in circulation all over India. AND WHEREAS the company is desirous to appoint advertising agents for securing advertisements for the said newspaper. AND WHEREAS the advertising agency has agreed to act as the advertising agents for securing advertisements for the said newspaper on the terms and conditions hereinafter mentioned: NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING AND THE MUTUAL COVENANTS HEREIN CONTAINED. THE PARTIES HEREBY AGREE AS FOLLOWS: The company appoints advertising agency as the agents for securing the advertisements for the publication in the newspaper I at the rates mentioned in the First Schedule hereunder written. If the advertising rates are changed by the company, the company shall deliver the copy thereof to the advertising agency under registered post. The advertising agency shall secure such number of advertisements for the company as shall occupy the space covered by pages of the said newspaper. The Advertising Agency shall send to the company the matter of each advertisement including block of the photograph to be included in the advertisement two weeks before the intended date of publication. The Agency shall also give a statement about the size of the advertisement, on which dates and on which page of the newspaper the advertisement will be published. If the advertising agency books any advertisement in the language other than English, the company shall make arrangements for translating the same into English without any extra charge. The advertising agency will collect the advertisement charges in respect of the advertisements secured by it and shall remit the same to the company every week. If any advertisement charges are not recovered for a period of six months from the date of its publication, the advertising agency shall be liable to pay the same to the company. However, if the said charges are recovered by the company later on, the company shall pay the same to the advertising agency. The company shall pay a commission of……………..% on the amount, for which the advertisements are secured by the advertising agency and are published in the said newspaper. The company shall pay the amount of commission to the advertising agency by tenth of the next succeeding month in respect of the advertisements secured during a month. The advertising agency shall be entitled to inspect the accounts of the company in respect of advertisements published in the said newspaper. The advertising agency shall not secure advertisements for any other newspaper during the currency of this Agreement. However, it can act as advertising agency to secure advertisements for the magazines and journals. The editor of the said newspaper will have the power to refuse publication of any advertisement secured by the advertising agency, if in his opinion the said advertisement is obscene or of such a character that it should not be published in public interest or if published it will violate the provisions of any law in force. If the advertising agency is not satisfied with the decision of the editor, the matter shall be referred to the Managing Director of the Company, whose decision thereon shall be final and binding on both parties. This Agreement shall continue in force for a period of……………..years from the date of these presents. However, the Agreement may be terminated before the expiry of the period of …………….. years by one month's notice in writing delivered by any party to the other. If the company ceases to publish the said newspaper, this agreement shall be deemed to be cancelled. If the advertising agency commits breach of any term of this agreement, the company may terminate this Agreement and on such termination, the company shall not be liable for any damages or loss thereunder arising to the advertising agency. The Advertising Agency shall indemnify and keep indemnified the company against any claim, loss, costs, charges and expenses made by or incurred by or suffered by the company on account of breach of copyright in any advertisement or on account of any advertisement being found defamatory or otherwise objectionable or on any other ground whatsoever. Any dispute, difference or claim arising out of or in connection with or incidental to this Agreement shall be first attempted to be settled by mutual discussion, failing which the parties shall refer the same to arbitration by an independent Arbitrator appointed by the Mutual consent of both the parties. The Arbitrator shall conduct arbitration proceedings in accordance with the Arbitration and Conciliation Act, 1996 or any amendments thereto. The venue of arbitration shall be at ……………... IN WITNESS WHEREOF, the parties have caused their common seal to be affixed to these presents and a duplicate thereof, the day and year hereinabove written WITNESSES 1 The Company For …………………….. (………………………) Director 2. The Advertising Agency For ………………………. (………………………) Director Download Word Document In English. (Rs.20/-)

Download Word Document In English. (Rs.75/-) Indonesia Double Taxation Avoidance Agreement Agreement between the Republic of India and the Republic of Indonesia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income Notification No.G.S.R.77 (E) dtd. 4.2.1988. INCOME TAX Whereas the annexed Agreement between Government of the Republic of India and the Government of the Republic of Indonesia for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income has entered into force, on the 19th December, 1987 on the notification by both the Contracting States to each other of the completion of the procedures required by their laws, as specified by Article 28 of the said agreement; Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961) and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that all the provisions of the said Agreement shall be given effect to in the Union of India. AGREEMENT BETWEEN THE REPUBLIC OF INDIA AND THE REPUBLIC OF INDONESIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of India and the Government of the Republic of Indonesia, DESIRING to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income. HAVE AGREED as follows: ARTICLE 1 Personal Scope This Agreement shall apply to persons who are residents of one or both of the Contracting States. ARTICLE 2 Taxes Covered 1.     The taxes to which this Agreement shall apply are: a.     In India:                       i.        the income-tax including any surcharge thereon imposed under the Income-Tax Act, 1961 (43 of 1961);                      ii.        the surtax imposed under the Companies (Profits) Surtax Act, 1964 (7 of 1964); (hereinafter referred to as "Indian Tax"). b.    In Indonesia: the income-tax imposed under the Undangundang Pajak Penghasilan 1984 (Law No. 7 of 1983) and to the extent provided in such income-tax law, the company tax imposed under the Ordonansi Paiak Perseroan 1925 (State Gazette No. 319 of 1925 as lastly amended by Law No. 8 of 1970) and the tax imposed under the Undang-undanq Paiak atas Bunga. Dividend an Royalty 1970 (Law No. 10 of 1970). (hereinafter referred to as "Indonesia Tax"). 2.     The Agreement shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of the present Agreement in addition to, or in place of, the taxes referred to in paragraph 1. The Competent authorities of the Contracting States shall notify each other of any substantial changes which are made in their respective taxation laws. ARTICLE 3 General Definitions 1.     In this Agreement, under the context otherwise requires: a.     the term "India" means the territory of India and includes the territorial sea and air space above it, as well as any other maritime zone in which India has sovereignty, sovereign rights, other rights and jurisdiction according to the Indian Law and in accordance with International Law, particularly the United Nations Convention on the Law of the Sea, 1982; b.    the term "Indonesia" comprises the territory of the Republic of Indonesia as defined in its laws and the includes the territorial sea and air space above in adjacent areas over which the Republic of Indonesia has sovereignty, sovereign rights or jurisdiction in accordance with International Law, particularly the provisions of the United Nations Conventions on the Law of the Sea, 1982; c.     the terms "a Contracting State" and "the other Contracting State" mean India or Indonesia as the context requires; d.    the term "tax" means Indian tax or Indonesian tax, as the context requires, but shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which this Agreement applies or which represents a penalty imposed relating to those taxes; e.     the term "person" includes an individual, a company and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting States; f.     the term "company" means any body corporate or any entity which is treated as a company or body corporate under the taxation laws in force in the respective Contracting States; g.    the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; h.     the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; i.      the term "competent authority" means in the case of India, the Central Government in the Ministry of Finance (Department of Revenue) or their authorised representative; and in the case of Indonesia, the Minister of Finance or his authorized representative; j.      the term "national" means any individual, possessing the nationality of a Contracting State and any legal person, partnership or association deriving its status from the laws in force in the Contracting State. 2.     As regards the application of the Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the tax to which the Agreement applies. ARTICLE 4 Resident 1.     For the purposes of this Agreement, the term "resident of a contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that State in respect only of income from sources in that State. 2.     Where by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then his status shall be determined as follows: a.     he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests); b.    if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; c.     if he has an habitual abode in both States or in neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3.     Where by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, the competent authorities of the contracting States shall settle he question by mutual agreement keeping in view of its place of incorporation, place of effective management and other relevant factors. ARTICLE 5 Permanent Establishment 1.     For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2.     The term "permanent establishment" includes especially: a.     a place of management; b.    a branch; c.     an office; d.    a factory; e.     a workshop; f.     a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; g.    a building site or construction, installation or assembly project or supervisory activities in connection therewith, but only where such site, project or activity continues for a period of more than 183 days. 3.     Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall be deemed not to include: a.     the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise; b.    the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display; c.     the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; d.    the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e.     the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character for the enterprise. 4.     Where a person (other than an agent of an independent status to whom the provisions of paragraph 7 apply) is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned State in respect of any activities which that person undertakes for the enterprise, if: a.     that person has, and habitually exercises in the first-mentioned State, an authority to conclude contracts on behalf of the enterprise; or b.    that person maintains in the first-mentioned Contracting State a stock of goods or merchandise belonging to the enterprise from which he regularly delivers goods or merchandise on behalf of the enterprise. 5.     An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it furnishes services, including consultancy services in that other Contracting State through employees or other personnel----other than an agent of an independent status to whom the provisions of paragraph 7 apply, -provided that activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than 91 days in any twelve month period. 6.     An insurance enterprise of a Contracting State shall, except with regard to reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in that other State or insures risks situated therein through an employee or through a representative who is not an agent of an independent status within the meaning of paragraph 7. 7.     An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other state through a broker, general commission agent or any other agent of an independent status provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph. 8.     The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other Contracting State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. ARTICLE 6 Income From Immovable Property 1.     Income derived by a resident of a Contracting State from immovable property, including income from agriculture or foresty situated in the other Contracting State may be taxed in that other State. 2.     The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, live-stock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships, boats and aircraft shall not be regarded as immovable property. 3.     The provisions of paragraph 1 shall also apply to income derived from the direct use, letting, or use in any other form of immovable property. 4.     The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services. ARTICLE 7 Business Profits 1.     The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to (a) that permanent establishment (b) sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment. 2.     Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3.     In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment, for amounts charged otherwise than in the determination of the profits of a permanent establishment. Likewise, no account shall be taken towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise by way of interest on moneys lent to the head office of the enterprise or any of its other offices. 4.     In so far as it has been customary in a contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary, the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this article. 5.     No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 6.     For the purposes of the preceding paragraphs, the profits, to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 7.     Where profits include items of income which are dealt with separately in other articles of this Agreement, then the provisions of those articles shall not be affected by the provisions of this article. ARTICLE 8 Shipping and Air Transport 1.     Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State. 2.     The provisions of paragraph 1 of this article shall also apply to profits from participation in a pool, a joint business or an international operating agency. 3.     For the purposes of this article, interest on funds connected with the operation of ships, or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft and the provisions of article 11 shall not apply in relation to such interest. 4.     The term "operation of ships or aircraft" shall mean business of transportation of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of ships or aircraft, including the sale of tickets for such transportation on behalf of other enterprises, the incidental lease of ships or aircraft and any other activity directly connected with such transportation. ARTICLE 9 Associated Enterprises 1.     Where: a.     an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b.    the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2.     Where a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly-profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between the independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of the agreement and the competent authorities of the Contracting States shall, if necessary, consult each other. ARTICLE 10 Dividends 1.     Dividends paid by a company, which is resident of Contracting State to a resident of the other Contracting State, may be taxed in that other State. 2.     However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed: a.     10 per cent. of the gross amount of dividends if the beneficial owner is a company which owns at least twenty five per cent of the shares of the company paying the dividends; b.    15 per cent of the gross amount of the dividends in all other cases. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 3.     The term "dividends" as used in this article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4.     The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein or performs in that other State independent personnel services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment of fixed base. In such case, the provisions of article 7, or article 14, as the case may be, shall apply. 5.     Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. ARTICLE 11 Interest 1.     Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 10 per cent of the gross amount of the interest. 3.     Notwithstanding the provisions of paragraph 2: a.     interest arising in a Contracting State shall be exempt from tax in that State provided it is derived and beneficially owned by:                       i.        the Government, a political sub-division or a local authority of the other Contracting State; or                      ii.        the Central Bank or any agency or instrumentality (including a financial institution) wholly owned by the other Contracting State or political sub-division of local authority thereof. b.    interest arising in a Contracting State shall be exempt from tax in that Contracting State to the extent approved by the Government of that State if it is derived and beneficially owned by any person [ other than a person referred to in sub-paragraph (a) ] who is a resident of the other Contracting State provided that the transaction giving rise to the debt-claim has been approved in this regard by the Government of the first-mentioned Contracting State. 4.     The term "interest" as used in this article means income from debt-claim of every kind (including interest on deferred payment sales), whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5.     The provisions of paragraph 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case, the provision of article 7 of article 14, as the case may be, shall apply. 6.     Interest shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated. 7.     Where, by reason of a special relationship between both the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. ARTICLE 12 Royalties 1.     Royalties in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such royalties may also be taxed in the Contracting State in which they arise, and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 15 per cent of the gross amount of the royalties. 3.     The term "royalties" as used in this article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematograph films, or films or tapes used for radio or television broadcasting, any patent trademark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4.     The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of article 7 or article 14, as the case may be shall apply. 5.     Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 6.     Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. ARTICLE 13 Capital Gains 1.     Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 and situated in the other Contracting State may be taxed in that other State. 2.     Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such fixed base, may be taxed in that other State. 3.     Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the contracting State of which the alienator is a resident. 4.     Gains from the alienation of any property other than that mentioned in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident. ARTICLE 14 Independent Personal Services 1.     Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that State except in the following circumstances when such income may also be taxed in the other Contracting State: a.     if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State; Or b.    if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 91 days in any twelve month period; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State. 2.     The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 Dependent Personal Services 1.     Subject to the provisions of articles 16, l7, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived there from may be taxed in that other State. 2.     Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: a.     the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period, and b.    the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and c.     the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State. 3.     Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only in that State. ARTICLE 16 Directors' Fees Directors' fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the Board of Directors (by whatever name called) of a company which is a resident of the other Contracting State may be taxed in that State. ARTICLE 17 Entertainer and Athletes 1.     Notwithstanding the provisions of article 14 and 15, income derived by a resident of a Contracting Stale as an entertainer such as a theatre, motion picture, radio or television artiste or a musician or as an athlete, from his personal activities as such exercised in the other Contracting State may be taxed in that other State. 2.     While income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of article 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer of athlete are exercised. 3.     Notwithstanding the provisions of paragraph 1, income derived by an entertainer or an athlete who is a resident of a Contracting State from his personal activities as such exercised in the other Contracting State, shall be taxable in the first-mentioned Contracting State if: a.     the activities in the other Contracting State are supported wholly or substantially from the public funds of the first-mentioned Contracting State, including any of its political sub-divisions or local authorities, or b.    the activities in the other Contracting State are in pursuance of a special programme for cultural exchange agreed upon between the Governments of the two Contracting States. 4.     Notwithstanding the provisions of paragraph 2 and articles 7, 14 and 15, where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such in a contracting state accrues not to the entratainer or athlete himself but to another person, that income shall be taxable only in the other Contracting State of: a.     that other person is supported wholly or substantially from the public funds of that other State, including any of its political sub-divisions or local authorities, or b.    the activities are exercised by an individual, being a resident of the other Contracting State, in pursuance of a special programme for cultural exchange agreed upon between the Governments of the two Contracting States and that other person to whom income therefrom accrues is a resident of the other Contracting State. ARTICLE 18 Remuneration and Pensions in Respect of Government Service 1.     Remuneration, other than a pension, paid by a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State. However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who: a.     is a national of that State; or b.    did not become a resident of that State solely for the purpose of rendering the services. 2.     Any pension paid by, or out of funds created by a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State. However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of that other State. 3.     The provisions of Articles 15, 16 and 17 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political sub-division or a local authority thereof. ARTICLE 19 Non-Government Pensions and Annuities 1.     Any pension, other than a pension referred to in Article 18, or any annuity derived by a resident of a Contracting State from sources within the other Contracting State may be taxed only in the first-mentioned Contracting State. 2.     Notwithstanding the provisions of paragraph 1, pensions paid out of a pension fund approved by the Government of a Contracting State (or its authorised Agency) to a resident of the other Contracting State is consideration of past employment may be taxed in the first-mentioned State. 3.     The term "pension" means a periodic payment made in consideration of past services or by way of compensation for injuries received in the course of performance of services. 4.     The term "annuity" 'means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth. ARTICLE 20 Students and Apprentices. 1.     A student or business apprentice who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State and who is present in that other State solely for the purpose of his education or training, shall be exempt from tax in that other State on: a.     payments made to him by persons residing outside that other State for the purposes of his maintenance, education or training; and b.    remuneration from employment in that other State, in an amount not exceeding Rs.20,000 or Rs.2,000,000 during any twelve month period, as the case may be, provided that such employment is directly related to his studies or is undertaken for the purpose of his maintenance. 2.     The benefits of the article shall extend only for such period of time as may be reasonable or customarily required to complete the education or training undertaken, but in no event shall any individual have the benefits of this article for more than five consecutive years from the date of his first arrival in that other Contracting State. ARTICLE 21 Professors, Teachers and Research Scholars 1.     A Professor or teacher who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State for the purpose of teaching or engaging in research or both, at a university, college, school or other approved institution in that other Contracting State shall be exempt from tax in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date of his arrival of that other State. 2.     This article shall not apply to income from research if such research is undertaken primarily for the private benefit of a specific person or persons. 3.     For the purposes of this article and article 20, an individual shall be deemed to be a resident of a Contracting State if he is resident in that Contracting State in the year of income, in which he visits the other Contracting State or in the immediately preceding year of income. 4.     For the purposes of paragraph 1, "approved institution" means an institution which has been approved in this regard by the competent authority of the concerned Contracting State. ARTICLE 22 Other Income 1.     Subject to the provisions of paragraph 2, items of income of a resident of a Contracting State, wherever arising, which are not expressly dealt with in the foregoing articles of this Agreement, shall be taxable only in that Contracting State. 2.     The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of article 7 or article 14, as the case may be, shall apply. 3.     Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing articles of this Agreement and arising in the other Contracting State may also be taxed in that other State. ARTICLE 23 Elimination of Double Taxation 1.     The laws in force in either of the Contracting States shall continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Agreement. 2.     The amount of Indonesian tax payable, under the laws of Indonesia and in accordance with the provisions of this Agreement, whether directly or by deduction, by a resident of India, in respect of profits or income arising in Indonesia, which have been subjected to tax both in India and in Indonesia, shall be allowed as a credit against the Indian tax payable in respect of such profits or income provided that such credit shall not exceed the Indian tax (as computed before allowing any such credit) which is appropriate to the profits or income arising in Indonesia. Further, where such resident is a company by which surtax is payable in India, the credit aforesaid shall be allowed in the first instance against income-tax payable by the company in India and as to the balance, if any, against surtax payable by it in India. 3.     The term "Indonesian tax payable" shall be deemed to include the amount of Indonesian tax which would have been paid if the Indonesian tax had not been exempted or reduced in accordance with the special incentive measures under Article 33 of Law No. 7 of 1983 (Undang-undang Pajak Penghuasilan 1984) which are designed to promote economic development in Indonesia, effective on the date of signature of this Agreement, or which may be introduced in the future in modification of, or in addition to, the existing provisions for promoting economic development in Indonesia, and such other incentive measures which may be agreed upon from time to time by the Contracting States. 4.     The amount of Indian tax payable under the laws of India and in accordance with the provisions of this Agreement, whether directly or by deduction, by a resident of Indonesia, in respect of profits or income arising in India, which has been subjected to tax both in India and in Indonesia, shall be allowed as a credit against Indonesian tax payable in respect of such profits or income provided that such credit shall not exceed the Indonesian tax (as computed before allowing any such credit) which is appropriate to the profits or income arising in India. 5.     The term "Indian tax payable" shall be deemed to include the amount of Indian tax which would have been paid if the Indian tax had not been exempted or reduced in accordance with the special incentive measures under the provisions of the Indian Income-Tax Act, 1961 (43 of 1961), which are designed to promote economic development in India, effective on the date of signature of this Agreement, or which may be introduced in the future in modification of, or in addition to, the existing provisions for promoting economic development in India, and such other incentive measures which may be agreed upon from time to time by the Contracting States. ARTICLE 24 Non-Discrimination 1.     The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. 2.     The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities in the same circumstances. 3.     Nothing contained in this article shall be construed as obliging a Contracting State to grant to persons not resident in that State any personal allowances, reliefs, reductions and deductions for taxation purposes which are by law available only to persons who are so resident. 4.     Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State, to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned State are or may be subjected in the same circumstances. 5.     In this article, the term "taxation" means taxes which are the subject of this Agreement. ARTICLE 25 Mutual Agreement Procedure 1.     Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Agreement, he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident. This case must be presented within three years of the date of receipt of notice of the action which gives rise to taxation not in accordance with the Agreement. 2.     The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the national laws of the Contracting States. 3.     The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement. 4.     The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States. ARTICLE 26 Exchange of Information 1.     The competent authorities of the Contracting States shall exchange such information (including documents) as is necessary for carrying out the provisions of the Agreement or of the domestic laws of the Contracting States concerning taxes covered by the Agreement, in so far as the taxation thereunder is not contrary to the Agreement, in particular for the prevention of fraud or evasion of such taxes. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of the State. However, if the information is originally regarded as secret in the transmitting State, it shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes which are the subject of the Agreement. Such persons or authorities shall use the information only for such purposes but may disclose the information in public court proceedings or in judicial decisions. The competent authorities shall, through consultation, develop appropriate conditions, methods and techniques concerning the matters in respect of which such exchange of information shall be made, including, where appropriate, exchange of information regarding tax avoidance. 2.     The exchange of information or documents shall be either on a routine basis or on request with reference to particular cases or both. The competent authorities of the Contracting States shall agree from time to time on the list of the information or documents which shall be furnished on a routine basis. 3.     In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: - a.     to carry out administrative measures at variance with the laws or administrative practice of that or of the other Contracting State; b.    to supply information or documents which are not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; c.     to supply information or documents which would disclose any trade, business, industrial, commercial or profess

Download Word Document In English. (Rs.85/-) Israel Double Taxation Avoidance Agreement Income-tax Act, 1961: Notification under section 90: Convention between the Republic of India and the State of Israel for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital Notification No. G. S. R. 256(E), dtd.26.06.1996. Whereas the annexed convention between the Government of the Republic of India and the Government of the State of Israel for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital has entered into force on the 15th May, 1996, after the notification by both the Contracting States to each other of the completion of the procedures required under their laws for bringing into force of the said Convention in accordance with Article 29 of the said Convention. Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), and section 44A of the Wealth-tax Act, 1957 (27 of 1957), the Central Government hereby directs that all the provisions of the said Convention shall be given effect to in the Union of India: ANNEXURE CONVENTION BETWEEN THE REPUBLIC OF INDIA AND THE STATE OF ISRAEL FOR THE AVOIDANCE OF DOUBLE TAXATION AND FOR THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL The Government of the Republic of India and the Government of the State of Israel, Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, have agreed as follows: Article 1 PERSONAL SCOPE This Convention shall apply to persons who are residents of one or both of the Contracting States. Article 2 TAXES COVERED 1.     This convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political sub-divisions or local authorities and to taxes on capital imposed on behalf of a Contracting State, irrespective of the manner in which they are levied. 2.     There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation. 3.     The existing taxes to which the Convention shall apply are in particular: a.     In India:                       i.        the income-tax, including any surcharge thereon; and (ii) the wealth-tax, (hereinafter referred to as "Indian tax"); a.     In Israel:                       i.        the income-tax;                      ii.        the company tax;                     iii.        the capital gains tax;                     iv.        the tax imposed upon gains from the alienation of immovable property according to the Land Appreciation Tax Law; and                      v.        taxes imposed on real property according to the Property Tax Law, (hereinafter referred to as "Israeli tax"). 4.     The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of significant changes which have been made in their respective taxation laws. Article 3 GENERAL DEFINITIONS 1.     For the purposes of this Convention, unless the context otherwise requires: a.     the term "India" means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the U.N. Convention on the Law of the Sea; b.    the term "Israel" means the State of Israel, and when used in a geographical sense, means the territory and the territorial sea over which it exercises its state sovereignty and jurisdiction, as well as the continental shelf, the exclusive economic zone and that part of the seabed and subsoil under the sea over which it exercises sovereign rights according to the international law; c.     the term "person" includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting States; d.    the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes; e.     the terms "a Contracting State" and "the other Contracting State" mean the Republic of India or the State of Israel as the context requires; f.     the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; g.    the term 'international traffic' means any transport by a ship or aircraft operated by an enterprise which is a resident of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; h.     the term "competent authority" means:                       i.        in India: the Central Government in the Ministry of Finance (Department of Revenue) or their authorised representative;                      ii.        in Israel: the Minister of Finance or his authorised representative; i.      the term "national" means:                       i.        any individual possessing the nationality of a Contracting State;                      ii.        any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State. j.      the term "fiscal year" means:                    i.        in the case of India, the twelve-month period beginning on the 1st of April;                   ii.        in the case of Israel, the twelve-month period beginning on the 1st of January; k.     the term 'tax' means Indian tax or Israeli tax, as the context requires, but shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which this Convention applies or which represents a penalty imposed relating to those taxes. 2.     a.     As regards the application of the Convention by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Convention applies. b.    If as a result of the application of sub-paragraph (a), the meaning of a term under the laws of a Contracting State is different from the meaning of that term under the laws of the other Contracting State, or if the meaning of such term is not readily determinable under the laws of one of the Contracting States, the competent authorities of the Contracting States may agree upon a common meaning of that term. c.     If, in a particular case, the application of the Convention fails to prevent double taxation because the Contracting States have differing rules with respect to the source of the category of income involved, the competent authorities of the Contracting States may reach agreement as to the source of income in the particular case so as to eliminate double taxation. Article 4 RESIDENT 1.     For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. 2.     Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a.     he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests); b.    if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; c.     if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national; d.    if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3.     Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated. If the State in which its place of effective management is situated cannot be determined, then the competent authorities of the Contracting States shall settle the question by mutual agreement. Article 5 PERMANENT ESTABLISHMENT 1.     For the purposes of this Convention, the term 'permanent establishment' means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2.     The term "permanent establishment" includes especially: a.     a place of management; b.    a branch; c.     an office; d.    a factory; e.     a workshop; and f.     a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3.     A building site of construction or assembly project or supervisory activities in connection therewith constitute a permanent establishment only if such site, project or activity last more than six months. 4.     Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall be deemed not to include: a.     the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; b.    the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; c.     the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; d.    the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; e.     the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character. 5.     Notwithstanding the provisions of paragraphs 1 and 2, where a person--other than an agent of an independent status to whom paragraph 6 applies--is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this place of business a permanent establishment under the provisions of that paragraph. 6.     An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other of an independent status, provided that such persons are acting in the ordinary course of their business, and in their commercial and financial relations with the enterprise no conditions are agreed or imposed which differ from those usually agreed between independent persons. 7.     The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. Article 6 INCOME FROM IMMOVABLE PROPERTY 1.     Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may also be taxed in that other State. 2.     The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property. 3.     The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property. 4.     The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services. Article 7 BUSINESS PROFITS 1.     The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may also be taxed in the other State but only so much of them as is attributable to that permanent establishment. 2.     Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3.     In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. 4.     In so far as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this article. 5.     No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 6.     For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 7.     Where profits include items of income which are dealt with separately in other articles of this Convention, then the provisions of those articles shall not be affected by the provisions of this article. Article 8 SHIPPING AND AIR TRANSPORT 1.     Profits from the operation of ships and aircraft in international traffic shall be taxable only in the Contracting State of which the enterprise is a resident. 2.     The term "profits" shall include income derived by the enterprise from the rental of ships and aircraft operated in international traffic. Such term shall also include income derived by the enterprise from the use, maintenance or rental of containers operated in international traffic (including trailers, barges and related equipment for the transport of such containers) if such income is incidental to the profits of the enterprise from the operation of ships and aircraft in international traffic. 3.     The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 4.     For the purposes of this article, interest on funds connected with the operation of ships or aircraft in international traffic shall be regarded as income or profits derived from the operation of such ships or aircraft and the provisions of Article 11 shall not apply in relation to such interest. 5.     The term "operation of ships and aircraft" shall mean business of transportation by ships or air of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of ships and aircraft, including the sale of tickets for such transportation on behalf of other enterprises, the incidental lease of ships and aircraft and any other activity directly connected with such transportation. Article 9 ASSOCIATED ENTERPRISES 1.     Where, a.     an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b.    the same persons participate directly or indirectly in the management, control or capital of an enterprise of other Contracting State and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2.     Where a Contracting State includes in the profits of an enterprise of that State--and taxes accordingly--profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits where that other State considers the adjustment justified. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other. Article 10 DIVIDENDS 1.     Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in other State. 2.     However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 10 per cent of the gross amount of the dividends. 3.     This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 4.     The term "dividends" as used in this article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights, not being debt-claims. Participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 5.     The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 15, as the case may be, shall apply. 6.     Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or in so far as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. Article 11 INTEREST 1.     Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 10 per cent of the gross amount of the interest. 3.     Notwithstanding the provisions of paragraphs 1 and 2, interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State, if the interest is paid in respect of:- a.     a bond, debenture or other similar obligation of the Government of the first-mentioned Contracting State or a political sub-division or local authority thereof; or b.    a loan made, refinanced, guaranteed or insured, or a credit extended, refinanced, guaranteed or insured by-                               i.        in the case of India, the Reserve Bank of India,                              ii.        in the case of Israel, the Bank of Israel, or                             iii.        other Governmental agencies or lending institutions as may be specified and agreed in an exchange of notes between the competent authorities of the Contracting States. 4.     The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5.     The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 15, as the case may be, shall apply. 6.     Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated. 7.     Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. Article 12 ROYALTIES 1.     Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such royalties may also be taxed in the Contracting State in which they arise, and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. 3.     The term "royalties" as used in this article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience. 4.     The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 15, as the case may be, shall apply. 5.     Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 6.     Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. Article 13 FEES FOR TECHNICAL SERVICES 1.     Fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the fees for technical services, the tax so charged shall not exceed 10 per cent. of the gross amount of the fees for technical services. 3.     The term "fees for technical services" as used in this article means payments of any kind received as a consideration for services of a managerial, technical or consultancy nature, including the provision of services by technical or other personnel, but does not include payments for services mentioned in Article 16 of this Convention. 4.     The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State, in which the fees for technical services arise, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the right, property or contract in respect of which the fees for technical services are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7, or Article 15, as the case may be, shall apply. 5.     Fees for technical services shall be deemed to arise in a Contracting State when the services are rendered in that State and the payer is that State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the fees for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the fees for technical services was incurred, and such fees for technical services are borne by such permanent establishment or fixed base, then such fees for technical services shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 6.     Where, by reason of special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of fees for technical services paid exceeds the amount which would have been paid in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. 7.     The provisions of paragraphs 1 to 6 of this article shall not apply to payments relating to services mentioned herein below:                       i.        Services that are ancillary and subsidiary, and inextricably and essentially linked, to a sale of property;                      ii.        Services that are ancillary and subsidiary to the rental of ships, aircraft, containers or other equipment used in connection with the operation of ships or aircraft in international traffic;                     iii.        Teaching in or by an educational institution;                     iv.        Services for the personal use of the individual or individuals making the payments; or                      v.        Professional services as defined in Article 15. Article 14 CAPITAL GAINS 1.     Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may also be taxed in that other State. 2.     Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may also be taxed in that other State. 3.     Gains from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State or which the enterprise is a resident. 4.     Gains from the alienation of shares or similar rights being shares in a company, the assets of which consist principally of immovable property situated in a Contracting State, may be taxed in that State. Gains from the alienation of an interest in a partnership, trust or estate, the property of which consists principally of immovable property situated in a Contracting State, may also be taxed in that State. 5.     Gains derived by a resident of a Contracting State from the sale, exchange or other disposition, directly or indirectly, or shares other than those mentioned in paragraph 4, or similar rights in a company which is a resident of the other Contracting State may also be taxed in that other State. 6.     Gains from the alienation of any property other than that referred to in paragraphs 1 through 5, shall be taxable only in the Contracting State of which the alienator is a resident. Article 15 INDEPENDENT PERSONAL SERVICES 1.     Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other Contracting State: a.     if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or b.    if his stay in the other State is for a period or periods exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State. 2.     The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants. Article 16 DEPENDENT PERSONAL SERVICES 1.     Subject to the provisions of Articles 17, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may also be taxed in that other State. 2.     Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first mentioned State if: a.     the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned, and b.    the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and c.     the remuneration is not borne by a permanent establishment of a fixed base which the employer has in the other State. 3.     Notwithstanding the preceding provisions of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may also be taxed in the Contracting State of which the enterprise is a resident. Article 17 DIRECTORS' FEES Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may also be taxed in that other State. Article 18 ARTISTES AND SPORTSPERSONS 1.     Notwithstanding the provisions of Articles 15 and 16, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2.     Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7, 15 and 16, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised. 3.     Notwithstanding the provisions of paragraph 1, income derived by an entertainer or a sportsperson who is a resident of a Contracting State from his personal activities as such exercised in the other Contracting State, shall be taxable only in first-mentioned Contracting State, if the activities in the other Contracting State are supported wholly or substantially from the public funds of the first-mentioned Contracting State, including any of its political sub-divisions or local authorities. 4.     Notwithstanding the provisions of paragraph 2 and Articles 7, 15 and 16, where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such in a Contracting State accrues not to the entertainer or sportsperson himself but to another person, that income shall be taxable only in the other Contracting State, if that other person is supported wholly or substantially from the public funds of that other State, including any of its political sub-divisions or local authorities. Article 19 PENSIONS Subject to the provisions of paragraph 2 of Article 20, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State. Article 20 GOVERNMENT SERVICE 1.       a.     Remuneration, other than a pension, paid by a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State. b.    However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:                       i.        is a national of that State; or                      ii.        did not become a resident of that State solely for the purpose of rendering the services. 2.     a.     Any pension paid by, or out of funds created by, a Contracting State or a political sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State. b.    However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of that State. 3.     The provisions of Articles 16, 17 and 19 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political sub-division or a local authority thereof. Article 21 PROFESSORS, TEACHERS AND STUDENTS 1.     Remuneration received for education or scientific research by an individual who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State for the purpose of scientific research or for teaching at an educational institution shall be exempt from tax in the first-mentioned State. This exemption shall be granted for a period that shall not exceed two years from the date on which the teacher or researcher first entered the first-mentioned State for the purpose of engaging in scientific research or for teaching. This article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons. 2.       a.     Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State. b.    Payments which a student or business apprentice receives as remuneration from employment in the first-mentioned State, in an amount not exceeding a sum equivalent to 3,000 U. S. dollars in the currency of the first-mentioned State during any fiscal year shall be exempt from tax in the first-mentioned State. The benefit of this paragraph shall extend only for such period of time as may be reasonable or customarily required to complete the education or training undertaken, but in no event shall any individual have the benefits of this paragraph for more than three consecutive years from the date of this first arrival in the first-mentioned Contracting State. Article 22 OTHER INCOME 1.     Items of income of a resident of a Contracting State, wherever arising not dealt with in the foregoing articles of this Convention shall be taxable only in that State. 2.     The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 15, as the case may be, shall apply. 3.     Notwithstanding the provisions of paragraph 1, any winnings from lotteries, crossword puzzles, races including horse races, card games and other games of any form or nature whatsoever may also be taxed in the Contracting State where they arise. Article 23 CAPITAL 1.     Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State. 2.     Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may also be taxed in that other State. 3.     Capital represented by ships and aircraft operated in international traffic, and by movable property pertaining to the operation of such ships and aircraft, shall be taxable only in the Contracting State of which the enterprise is a resident. 4.     All other elements of capital of a resident of a Contracting State shall be taxable only in that State. Article 24 ELIMINATION OF DOUBLE TAXATION 1.     Subject to the laws of Israel from time to time in force regarding the allowance as a credit against Israeli tax of tax paid in any country other than Israel (which shall not affect the general provision contained in this paragraph), Indian tax paid in respect of income derived from or capital owned in India shall be allowed as a credit against Israeli tax payable in respect of that income or capital. The credit shall not, however, exceed that portion of Israeli tax which the income or capital from sources within India bears to the entire income or capital, as the case may be, subject to Israeli tax. 2.     Where a resident of India derives income or owns capital which, in accordance with the provisions of this convention, may be taxed in Israel, India shall allow: a.     as a deduction from the tax on the income of that resident, an amount equal to the income-tax paid in Israel, whether directly or by deduction. b.    as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in Israel. Such deduction in either case shall not, however, exceed that part of the income-tax or capital tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in Israel. 3.     Notwithstanding the provisions of paragraphs 1 and 2 of this article, where a resident of a Contracting State derives income by way of dividends on shares of companies resident in the other Contracting State, the first-mentioned Contracting State shall allow credit of 15 per cent. of the gross amount of such dividend from the tax payable. 4.     Notwithstanding the provisions of paragraphs 1 and 2 of this article, where a resident of a Contracting State derives income by way of interest from any source in the other Contracting State, the first mentioned Contracting State shall allow a credit of 10 per cent. of the gross amount of such interest from the tax payable. 5.     Where in accordance with any provision of the Convention income derived or capital owned by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital. Article 25 NON-DISCRIMINATION 1.     Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States. 2.     The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first-mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first-mentioned Contracting State, nor as being in conflict with the provision of paragraph 3 of Article 7 of the Convention. 3.     Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, paragraph 6 of Article 12, or paragraph 6 of Article 13, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of such enterprise be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State. 4.     Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected. Article 26 MUTUAL AGREEMENT PROCEDURE 1.     Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 25, to that of the Contracting State of which he is a notional. The case must be presented within three years from the first-notification of the action resulting in taxation not in accordance with the provisions of the Convention. 2.     The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3.     The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4.     The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States. Article 27 EXCHANGE OF INFORMATION 1.     The competent authorities of the Contracting States shall exchange such information (including documents), as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention in so far as the taxation thereunder is not contrary to the Convention in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 2.     In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: a.     to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; b.    to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; c.     to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (order public). Article 28 DIPLOMATIC AGENTS AND CONSULAR OFFICERS Nothing in this Convention shall affect the fiscal

Download Word Document In English. (Rs.75/-) Sri Lanka Double Taxation Avoidance Agreement CONVENTION FOR AVOIDANCE OF DOUBLE TAXATION BETWEEN REPUBLIC OF INDIA AND REPUBLIC OF SRI LANKA NOTIFICATION No. G.S.R. 342(E) dtd. 19.4.1983 Whereas the annexed Convention between the Government of the Republic of India and the Government of the Democratic Socialist Republic of Sri Lanka for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital has been ratified and the instruments of ratification exchanged as required by Article 29 of the said Convention; Now, therefore, in exercise of the powers conferred by Section 90 of the Income-tax -Act, 1961 (43 of 1961), and Section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Goverment hereby directs that all the provisions of the said Convention shall be given effect to in the Union of India. CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE DEMOCRATIC SOCIALIST REPUBLIC OF SRI LANKA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TOTAXES ON INCOME AND ON CAPITAL The Government of the Republic of India and the Governnment of the Democratic Socialist Republic of Sri Lanka desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, have agreed as follows: ARTICLE 1 Personal Scope This Convention shall apply to persons who are residents of one or both of the Contracting States. ARTICLE 2 1.      Taxes Covered 2.     This Convention shall apply to taxes on income and on capital imposed on behalf of each Contracting State irrespective of the manner in which they are levied. 3.     These shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation. 4.     The existing taxes to which this Convention shall apply are: - a.       In Sri Lanka:                       i.        the income-tax, including the income-tax based on the turnover of enterprises licensed by the Greater Colombo Economic Commission; and                      ii.        the wealth tax; (hereinafter referred to as "Sri Lanka tax") b.      In India:                       i.        the income-tax including any surcharge there on;                      ii.        the surtax; and                     iii.        the wealth tax. (herein after referred to as "Indian tax") 5.     This Convention shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Convention in addition to, or in place, of, the existing taxes. The competent authorities of the Contracting States shall notify, each other of any important changes which have been made in their respective taxation laws. ARTICLE 3 General Definition 1.     In this Convention, unless the context otherwise requires: a.     the terms "a Contracting State" and "the other Contracting State" mean Sri Lanka or India as the context requires; b.    the term "person" includes an individual a company and any other body of persons; c.     the term "company" means any body corporate or any entity which is treated as a body, corporate for the tax purposes; d.    the terms "enterprise of a Contracting State" and enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; e.     the term " international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State: f.     the term "national" means:                       i.        an individual possessing the nationality of a Contracting State;                      ii.        a legal person, partnership or an association deriving its status as such from the laws in force in a Contracting State; g.    the term "competent authority" means:                       i.        in the case of Sri Lanka, the Commissioner-General of Inland Revenue;                      ii.        in the case of India, the Central Government in the Ministry of Finance (Department of Revenue). 2.     As regards the application of this Government by a Contracting State any term not defined therein shall, unless the context otherwise requires have the meaning which it has under the laws of that State relating to the taxes which are the subject of this Convention. ARTICLE 4 Fiscal Domicile 1.     For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. But this term does not include any persorn, who is liable to tax in that State in respect only of income from sources in that State or capital situated therein. 2.     Where by reason of the provisions of paragraph (1) of this Article an individual is a resident of both Contracting States, then his status shall be determined as follows: a.     he shall be deemed to be a resident of the State in which he has a permanent home available to him. If he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests); b.    if the State in which he has his centre of vital in terests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; c.     if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national; d.    if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3.     Where by reason of the provisions of paragraph (1) of this Article a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated. ARTICLE 5 Permanent Establishment 1.     For the purpose of this Convention, the term "permanent establishment" means a fixed place of business through which the business of the enterprise is wholly or partly carried on. 2.     The term "pemmanent establishment" shall include especially: a.     a place of management; b.    a branch; c.     an office; d.    a factory; e.     a workshop; f.     a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; g.    an agricultural or farming estate or plantation; h.     a building site or construction or assembly project which exists for more than 183 days; i.      the furnishing of services, including consulttancy services, by an enterprise through employees or other personnel, where activities of that nature Continue within the country for a period or periods aggregat ing more than 183 days within any twelve month period. 3.     Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include: a.     the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; b.    the maintenance of a stock of goods or merchandise belongihg to the enterprise solely for the purpose of storage display or delivery; c.     the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; d.    the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e.     the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of in formation or for scientific research, being activities solely of a preparatory or auxiliary character in the trade or business of the enterprise. 4.     A person acting in a Contracting State on behalf of an enterprise of the other Contracting State-other than an agent of an independent status to whom paragraph (6) of this Article Applies-shall be deemed to be a permanent establishment in the first-mentioned State if he has, and habitually exercises in that State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise. 5.     Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks Sitated therein through a person other than an agent of independent status to whom paragraph (6) of this Article applies. 6.     An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph. 7.     The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise) shall not of itself constitute either company a permanent establishment of the other. ARTICLE 9 Income from Immovable Property 1.     Income from immovable property may be taxed in the Contracting State in which such property is situated. 2.     The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property. 3.     The provisions of paragraph (1) of this Article shall apply to income derived from the direct use, letting, or use in any other form of imniovable property. 4.     The provisions of paragraphs (1) and, (3) of this Article shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of professional services. ARTICLE 7 Business profits 1.     The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the State but only so much of them as is attributable to- a.     that permanent establishment, b.    sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment, or c.     other business activities carried on in that other State of the same or state kind as those effected through that permanent establishment. The provisions of sub-paragraphs (b) and (c) shall not apply if the enterprise proves that such sales or activities are not attributable to the permanent establishment. 2.     Subject to the provisions of paragraph (3) of this Article, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3.      3.In the determination of the profits of a permanent establishment, there shll be allowed as deductions expenses which are incurred for the purpose of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights or by way of commission for a specific services performed or for management or, except in the case of a banking enterprise, by of interest on money lent to the permanent establishment. Likewise no accotunt shall be taken, in the determination of the profits of a permanent establishment, for amounts charged (otherwise that towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for maqnagement, or except in the case of a banking enterprise by way of interest on money lent to the head office of the enterprise or any of its other offices. 4.     Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts nothing in paragraph (2) of this Article shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment shall, however, be such that the result will be in accordance with the principles contained in this Article. 5.     No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 6.     For the purpose of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 7.     Where profits include items of income which are dealt dealt with separately in other Articles of this Convention then the provisions of those articles shall not be effected by the provision, of this Article. ARTICLE 8 Shipping and air Transport 1.     Profits derived by an enterprise of a Contracting State from the opeation of ships or aricraft in international traffic shall be taxable only in the Contracting State in which the place effective management of the enterprises is situated. 2.     Notwithstanding the provisions of paragraph (1), profits derived from the operation of ships in international traffic may be taxed in the Contracting State in which such operation is carried on but the tax so charged shall not exceed 50 per cent of the tax othewise imposed by the international law of that State. Provided that for the purpose of the calculation of the tax such profits shall be deemed to be an amount not exceeding the rates presently provided in the taxation laws of the respective States for the computation of such profits. 3.     The provisions of paragraphs (1) and (2) of this Article shall likewise apply in respect of profits from the participation in a pool, a joint business or an international operating agency of any kind by enterprises engaged in the operation of ships or aircraft in international traffic. 4.     For the purpose of paragraph 1, interest on funds connected with the operation of ships or aircraft in international traffic shall be regarded as income from the operation of such aircraft, and the provisions of Article 11 shall not apply in relation to such interest. 5.     If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated or if there is no such home harbour, in the State of which the operator of the ship is a resident. ARTICLE 9 Associated Enterprises 1.     Where: - a.     an enterprise of a Contrtacting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b.    the same persons participate directly or indirectly in the management control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State. and in either ease conditions are made or imposed between the two enterprises in their or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions have accrued to one of the enterprises, but by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2.     Where a Contracting State includes in the profits of an enterprise of that State and taxes accordingly profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accured to the enterprise of the first mentioned State if the conditions made between the two enterprises had been those which would have been made between indepedent enterprises then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting State shall if necessary consult each other. ARTICLE 10 Dividends 1.     Dividends paid by a company which is a resident of a Contracting State to a resident of the otther Contracting State be taxed in that other State. 2.     However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State but the tax so charged shall not exceed 15 per cent of the gross amount of the dividends. 3.     The term "dividends" as used in this Article means income from shares, mining shares, founders' shares or other rights not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the taxation law of the State of which the company making the distribution is a resident. 4.     The provision of paragraphs (1) and (2) of this Article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paving the dividends is a resident, through a permanent establishment situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 5.     Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company's undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. ARTICLE 11 Interst 1.     Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 10 per cent of the gross amount of the interest. 3.     Notwithstanding the Provisions of paragraph (2) of this Article interest arising in a Contracting State shall be exempt from tax in that State if: a.     the payer of the interest is the Government of that Contracting State or a local authority thereof, or b.    the interest is paid to the Government of the other Contracting State or local authority thereof or any agency or instrumentality (including a financial institution) wholly owned by that other Contracting State or local authority thereof. 4.     The term "interest" as used in this Article means income from Government securties, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits, and debt-claims of every kind as well as all other income assimilated to income from money lent by the taxation law of the state in which the income arises. 5.     The provisions of paragraphs (1) to (3) of this Article shalt not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises through a permanent establishment situated therein and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply. 6.     Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which 'the permanent establishment is situated. 7.     Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. ARTICLE 12 Royalties 1.     Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalty the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. 3.     The term "royalties' as used in this Article means payments of any kind received as a consideration for the use of or the right to any copyright of literary, artistic or scientific work including cinematograph films, or tapes for television or broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4.     The provisions of paragraphs (1) and (2) of this Article shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishmet. In such case the provisions of Article 7 shall apply. 5.     Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the State in which the permanent establishment is situated. 6.     Where by reason of a special relationship between the payer ind the beneficial owner or between both of them and some other person, the amount of the royalties having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payment shall remain taxable according to the laws of each Contructing State, due regard being had to the other provisions of this Convention. ARTICLE 13 Capital Gains 1.     Gains derrived by a resident of a Contracting State from the alienation of immovable property referred to in paragrah (2) of Article 6 and situated in the other Contracting State may be taxed in that other State. 2.     Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State including such gains from the alternation of such a permanent establishment alone or with the whole enterprise, may be taxed in that other State. 3.     Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. 4.     Gains from the alienation of stocks shares of a company may be taxed in the Contracting State in which they have been issued. 5.     Gains from the alienation of any property other than that referred to in paragraphs (1) to (4) of this Article, shall be taxable only in the Contracting State of which the alienator is a resident. 6.     The term " alienation" means the sale, exchange, transfer, or relinquishment of the property or the extinguishment of any rights therein or the compulsory acquisition hereof under any law in force in the respective Contracting States. ARTICLE 14 Independent Personal Services 1.     Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State unless his stay in the other Contracting State is for a period or periods exceeding in the aggregate 120 days within any 12 months period, when such income may also be taxed in the other Contracting State. 2.     The term "professional services" includes independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 Dependent Personal Services 1.     Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment is exercisable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State. 2.     Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first mentioned State if: a.     The recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days within any 12 month period; and b.    the renumeration is paid by, or on behalf of, an employer who is not a resident of the other State, and c.     that remuneration is not borne, by a permanent establishment or a fixed base which the employer has in the other State. 3.     Notwithstanding the preceding provisions of this Article remuneration in respect of an employment exercised aboard a ship or aircraft in international traffic, may be taxed only in the Contracting State in which the place effective management of the enterprise is situated. ARTICLE 16 Directors Fees Directors' fees and other similar payments derived by a resident of a contracting State in his capacity is a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State. ARTICLE 17 Artistes and Athletes 1.     Notwithstanding, the provisions of Article 14 and 15, income derived by public entertainers (such as theatre motion picture, radio or television artites and musicians) or athlete, from their personal activities as such may be taxed in the Contracting State in which these activities are exercised. Provided that such income shall not be taxed in the said Contracting State if the visit of the public entertainers or athletes to that State is directly or indirectly supported wholly or substtantially, from the public funds of the Government of the other Contracting State. 2.     Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised. 3.     For the purposes of this Article, the term "Government" includes a State Government, a political sub-division or a local authority of either Contracting State. ARTICLE 18 Government Service 1.       a.     Remuneration, other than a pension, paid by the Government of a Contracting State to an individual in respect of services rendered to that State or a local authority thereof shall be taxable only in that State. b.    However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who:                       i.        is a national of that State, or                      ii.        did not become a resident of that State solely for the purpose of rendering the services. 3.     Any pension paid by the Government of one of the Contracting States to any individual may be taxed in that Contracting State. 4.     The provisions of Articles 15, 16 and 19 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a local authority thereof. 5.     For the purposes of this Article, the term "Government" shall include any State Government or local authority of either Contracting State, the Reserve Bank of India and the Central Bank of Ceylon. ARTICLE 19 Non-Governemnt Pensions and Annuities 1.     Any pension (other than a pension referred to in Article 18) or annuity derived by a resident of a Contracting State from sources within the other Contracting State may be taxed only in the first-mentioned Contracting State. 2.     The term "pension" means a periodic payment made in consideration of services rendered in the past or by way of compensation for injuries received in the course of Performance of services. 3.     The term "annuity" means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth. ARTICLE 20 Professors and Teachers A professor or teacher who make a temporary visit to a Contracting State for a period not exceeding two years for the purpose of teaching or conducting research at a university, college, school or other educational institution, and who is, or immediately before such visit was a resident of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State in respect of remuneration for such teaching or research. ARTICLE 21 Students and Apprentices 1.     Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or trainning receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State. 2.     In respect to grants, scholarships and remuneration from employment not covered by paragraph (1) of this Article a student or business apprentice described in paragraph (1) of this Article shall, in addition, be entitled during such education or training to the same exemption, reliefs or reductions in respect of taxes available to residents of the State which he is visiting. ARTICLE 22 Other Income Items of income of a resident of a Contracting State which are not expressly mentioned in the foregoing Article of this Agreement in respect of which he is subject to tax in that State shall be taxable only in that State. ARTICLE 23 Capital 1.     Capital represented by unmovable property referred to in paragraph, (2) of Article 6 may be taxed in the Contracting State in which such property is situated. 2.     Capital represented by movable property forming part of the business property of a permanent establishment of an enterprise may be taxed in the contracting State in which the permanent establishment is situated. 3.     Notwithstanding the provisions of pagraph (2) of this Article, ships and aircraft operated in international traffic and movable property pertaining to the operation of such ships and aircraft, shall be taxble only in the Contracting State in which the place of effective management of the enterprise is situated. 4.     All other elements of capital of a resident of a Contracting State shall be taxable only in that State. ARTICLE 24 Elimination of Double Taxation 1.     The laws in force in either of the Contracting states shall Continue to govern the taxation of income and capital in the respective Contracting States except when express provision to the contrary is made in this Convention. When income or capital is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article. 2.     Subject to the provisions of the law of India regarding the allowance as a credit against Indian tax of tax-payable in a terrritory outside India (which shall not affect the general principle hereof) Sri Lanka tax payable under the law of Sri Lanka and in accordance with this Convention whether directly or by deduction on profits income or chargeable gains from sources within Sri Lanka (excluding) in the case of a dividend, tax payable in deduction of the profits out of which the dividend is paid) or capital in Sri Lanka shall be allowed as a credit against any Indian tax computed by reference to the same items of income or capital as referred to which the Sri Lanka tax is computed Provided that such credit not exceed lndian tax (as computed before allowing any sources such credit), which is appiopriate to the income derived from sources within Sri Lanka or to capital in Sri Lanka, so however, that where such resident is a company, by which surtax is payable in India, the credit in India, the credit aforesaid shall be allowed in the first instance aganist income-tax payable by the company in India, and as to the balance, if any payable by it in India. 3.     For the purposes of paragraph (2) of this Article, the term "Sri Lanka tax payable " shall be deemed to include any amount which would have been payable as Sri Lanka tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under: a.     any of the following provisions that is to say sections 11, 16, 17, 18, 19, 20, 21, 22, and 85 of the Sri Lanka Inland Revenue Act, No, 28 of 1979 so far as they were in force on, and have not been modified since, the date of the signature of this Convention, or have been modified only in minor respects so as not to affect their general character; or b.    any agreement entered into section 17 of the Greater Colombo Economic Commission Law No. 4 of 1978; o c.     any other provisions which may subsequently be made granting an exemption or reduction of tax which is agreed by the competent authorities to be of a substantially similar character, if it is has not been modified thereafter or has been modified oily in minor respects so as not to affect its general character. 4.     Subject to the provisions of the law of Sri Lanka regarding the allowance as a credit against Sri Lanka tax of tax payable in a territory outside Sri Lanka (which shall not affect the general principle hereof) Indian tax payable under the law of India and in accordance with the Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within India (excluding in the case of a dividend, tax-payable in respect of the profits out of which the dividend is paid) or capital in India shall be allowed as a credit against any Sri Lanka tax computed by reference to the same items of income or capital by reference to which the Sri Lanka's tax is computed: Provided that Such credit shall not exceed Sri Lanka tax (as computed before allowing any such credit), which is appropriate to the income derived from sources within India or to capital in India. 5.     For the purpose of paragraph (4) of this Article, the term "Indian Tax payable" shall be deemed to include any amount which would have been payable as Indian tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under: a.     any of the following provisions, that is to say sections 10(4), 10(4A), 10(15)(iv), 32A, 33A, 35C, 54E, 80CC, 80HH, 80J, 80K of the Income-Tax Act, 1961; or b.    any other provisions which may subsequently be made granting an exemption or reduction of tax which is agreed by the competent authorities to be of a substantially similar character if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character. ARTICLE 25 Non-Discrimination 1.     Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. This provisions shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States. 2.     The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents. 3.     Except where the provisions of paragraph (1) of, Article 9, paragraph (7) of Article 11 or paragraph (6) of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned state. 4.     Enterprises of a Contracting state, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other simiar enterprises of the fist-metioned State are or may be subjected. 5.     The provisions of this Article shall notwithstanding the provisions of Article 2, apply to taxes of every kind and description. ARTICLE 26 Mutual Agreement Procedure 1.     Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph (1) of Article 25 of that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention. 2.     The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agree ment with the competent authority of the other Contracting State with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding limits in the domestic law of the Contracting States. 3.     The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4.     The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. The competent authorities through consultation shall develop appropriate bilateral procedures, conditions, methods and techniques for the implementation of the mutual agreement procedure provided for in this Article. In addition, a competent authority may devise appropriate unilateral procedures, conditions, methods and techniques to facilitate the abovementioned bilateral actions and the implementation of the mutual agreement procedure. ARTICLE 27 Exchange of Information 1.     The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention, insofar as the taxation thereunder is not contrary to the Convention in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner is information obtained under the domestic laws of that State. However, if the information is originally regarded as secret in the transmitting State it shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of the enforcement or, proscecution in of, or the determination of appeals in respect to, the tax which are the subject of the Convention. Such persons or shall use the information only for such purposes but may disclose the informatiom in public court proceeding of in judicial decisions. The competent authorities shall through consulation develop appropriate conditions, methods and techniques concerning the matters in respect of which such exchanges of information shall be made, including where appropriate, exchanges of information regarding tax avoidance. 2.     In no case shall the provisions of partagraph 1 be constructed so as to impose on a Contracting State the obligation: a.     to carry out administrative measures at variance with the laws and administrative practice of that or of the oother Contracting state; b.    to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; c.     to supply information which would disclose any trade business, industrial commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (order public). ARTICLE 28 Diplolmatic Agents and Consular Offcials Nothing in this Convention shall affect the fiscal privilegs of diplomatic agents or consular officials under the general rules of international law or under the provisions of special agreements. ARTICLE 29 Entry into Force 1.     This Convention shall be ratified and the instruments of ratification shall be exchanged at Colombo as soon as possible. 2.     The Convention shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect: a.       In Sri Lanka-                       i.        in respect of income assessable for any year of assessment commencing on or after 1st April,1980;                      ii.        in respect of capital assessable for any year of assessment commencing on or after 1st April,1980; b.      In India-                       i.        (i)in respect of income assessable for any year

Agreement of Dealership between Manufacturer and Firm This Agreement is made on this.......day of ........................ at ..............between : 1.     Messers XYZ Ltd., incorporated under the Companies Act, 1956 having its registered office at ...................................................... hereinafter called the company of the one part ; and 2.     Messers ABC & Co, a partnership concern consisting of its partners Mr. ................... , Mr............................ and Mr.......................through its partners Mr......................having its office at..........................hereinafter called the firm of the other part. WHEREAS the manufacturer is engaged in manufacturing electronics and electrical products of different varieties. AND WHEREAS the firm has its own establishment and is making sales of the products of other companies and has shown its desire of selling the product of the company from its new showroom recently taken on rent. AND WHEREAS the company, after considering the proposals put forward by the firm has decided to appoint the firm. NOW THIS AGREEMENT WITNESSES AS UNDER : 1.     That the company hereby appoints the firm as its dealer to sell the products of the company. 2.     That the appointment of the firm as dealer shall remain in force for three years from the date of this agreement, but this agreement may be renewed for the same period on the terms and conditioned that may be settled between the parties at that time. 3.     That the firm shall keep the stock of the company for Rs................at any time. The firm shall submit a quarterly return of the product received, product sold and product in hand. 4.     That the company shall allow credit of one month to the firm on all invoices. But an interest of 18% per annum shall be charged on all payments received after one month. 5.     That advertisement material shall be supplied by the company to the firm in sufficient quantity in order to display the same at sales depot and for distribution in the areas of its operation. 6.     That the company shall bear 60% cost of rent, and staff subject to maximum of 6% of the invoice value of all products of the company sold to the firm. This amount shall be credited in running account of the firm with the company on quarterly basis. 7.     That accounts between the parties shall be settled half yearly and debit or credit notes shall be issued half yearly in order to square up the accounts. 8.     That the firm shall make every efforts to promote the sales of the company. In case it is felt by the company that the firm is not taking proper interest, it may terminate the dealership by giving one months prior notice. 9.     That on termination of the agreement the accounts shall be settled within a fortnight. The company shall take back all unsold stock and settle the account. 10.  That firm shall not sell any goods of the company on a price higher or lower than what may be fixed by the company from time to time. 11.  That the firm is entitled to appoint sub-dealer, agents, salesmen clerk etc. in salary or commission basis, but with the condition that they shall work strictly within the terms an conditions of this agreement. IN WITNESS WHEREOF the parties have executed these presents on the day, month and year first above written. Sealed, signed and delivered by Mr. A pursuant to Board Resolution dated ......... of XYZ Ltd. ____________________________ (Secretary) Sealed, signed and delivered by Mr. C. Firm ____________________________ Mr. C. (Partner of ABC & Co.) In the presence of 1. ............... 2. ............... Download Word Document In English. (Rs.20/-)

Download Word Document In English. (Rs.35/-) Greece Double Taxation Avoidance Agreement Agreement Between The Government Of India And The Government Of Greece For The Avoidance Of Double Taxation Of Income Notification No.G.S.R. 394 dtd. 17.3.1967. Whereas the annexed Agreement between the Government of India and the Government of Greece for the avoidance of double taxation of income has been ratified and the Instruments of ratification exchanged, as required by Article XX of the said Agreement. Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby directs that all the provisions of the said Agreement shall be given effect to in the Union of India. ANNEXURE Agreement between the Government of India and the Government of Greece for the avoidance of double taxation of income. Whereas the Government of India and the Government of Greece desire to conclude an Agreement for the avoidance of double taxation of income: Now, therefore, it is hereby agreed as follows: ARTICLE I 1.     The taxes which are the subject of the present Agreement are: a.     In India: the Income-tax, the Super-tax, the Surcharge, imposed under the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as "Indian Tax"); b.    In Greece: the tax on physical persons and the income-tax on legal entities, and any special tax levied in Greece with reference to freight earned by shipping enterprises by the carriage of passengers, live-stock or goods, imposed under the Royal Decrees No. 3323/1955 and 3843/1958 and the Law No. 1880/1951 (hereinafter referred to as " Greek Tax"). 2.     The present Agreement shall also apply to any other taxes of a substantially similar character imposed in India or Greece subsequent to the date of signature of the present Agreement. ARTICLE II 1.     In the present Agreement, unless the context otherwise requires: a.     the term "Greece" means the territory of the Kingdom of Greece; b.    the terms "one of the territories" and "the other territory" mean, Greece or India as the context requires; c.     the term "person" includes natural persons, companies and all other entities which are treated as taxable units under the tax laws in force in the respective territories; d.    the term "company" means any entity which is treated as a body corporate or as a company for tax purposes; e.     the term "tax" means the Greek tax or Indian tax, as the context requires; f.     the terms "resident of Greece" and "resident. of India" mean, respectively, a person who is resident in Greece for the purposes of Greek tax and not resident in India for the purposes of Indian tax, and a person who is resident in India for the purposes of Indian tax and not resident in Greece for the purposes of Greek tax. A company shall be regarded as resident in Greece if it is incorporated in Greece or its business is wholly managed and controlled in Greece; a company shall be regarded as resident in India if it is incorporated in India or its business is wholly managed and controlled in India. g.    the terms "Greek enterprise" and "Indian enterprise" mean, respectively, an industrial or commercial enterprise or undertaking carried on by a resident of Greece and an industrial or commercial enterprise or undertaking carried on by a resident of India; and the terms "enterprise of one of the territories" and "enterprise of the other territory" mean a Greek enterprise or an Indian enterprise, as the context requires; h.     the term "permanent establishment" means a fixed place of business in which the business of the enterprise is wholly or partly carried on; aa.  the term "fixed place of business" shall include a place of management, a branch, an office, a factory, a workshop, a warehouse, a mine, quarry or other place of extraction of natural resources; bb.  an enterprise of one of the territories shall be deemed to have a fixed place of business in other territory if it carries on in that other territory a construction, installation or assembly project or the like; cc.  the use of mere storage facilities or the maintenance of a place of business exclusively for the purchase of goods or merchandise and not for any processing of such goods or merchandise in the territory of purchase, shall not constitute a permanent establishment; dd.  a person acting in one of the territories for or on behalf of an enterprise of the other territory shall be deemed to be a permanent establishment of that enterprise in the first-mentioned territory, only if; 1. he has and habitually exercises in the first-mentioned territory a general authority to negotiate and enter into contracts for or on behalf of the enterprise, unless the activities of the person are limited exclusively to the purchase of goods or merchandise for the enterprise, or 2. he habitually maintains in the first-mentioned territory a stock of goods or merchandise belonging to the enterprise from which the person regularly delivers goods or merchandise for or on behalf of the enterprise, or 3. he habitually secures orders in the first-mentioned territory wholly or almost wholly for the enterprise itself or for the enterprise and other enterprise which are controlled by it or have a controlling interest in it. ee.  A broker of a genuinely independent status who merely acts as an intermediary between an enter prise of one of the territories and a prospective customer in the other territory shall not be deemed to be a permanent establishment of the enterprise in the last-mentioned territory. ff.    The fact that a company, which is a resident of one of the territories, has a subsidiary company which either is a resident of the other territory or carries on a trade or business in that other territory (whether through a permanent establishment or otherwise), shall not, of itself constitute that subsidiary company a permanent establishment of its parent company. i.      The term "pension" means a periodic payment made in consideration of services rendered or by way of compensation for injuries received; j.      the term "annually" means a stated sum payable periodically at stated time during life or during a specified or ascertainable, period of time under an obligation to make the payments in return for adequate and full consideration in money or money's worth; k.     the term "competent authority" means in the case of India, the Central Government in the Ministry of Finance, Department of Revenue, or its authorised representative and in the case of Greece, the Ministry of Finance or its authorised representative. 2.     In the application of the provisions of this Agreement in one of the territories any term not otherwise defined in this Agreement shall, unless the context otherwise requires, have the meaning which it has under the laws in force in that territory relating to the taxes which are the subject of this Agreement. ARTICLE III 1.     Subject to the provisions of paragraph (3) below, tax shall not be levied in one of the territories on the industrial or commercial profits of an enterprise of the other territory unless profits are derived in the first-mentioned territory through a permanent establishment of the said enterprise situated in the first-mentioned territory. If profits are so derived, tax may be levied in the first-mentioned territory on the profits attributable to the said permanent establishment. 2.     There shall be attributed to the permanent establishment of an enterprise of one of the territories situated in the other territory the industrial or commercial profits which it might be expected to derive in that other territory if it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and dealing at arm's length with the enterprise of which it is a permanent establishment. In any case, where the correct amount of profits attributable to a permanent establishment is incapable of determination or the ascertainment thereof presents exceptional difficulties, the profits attributable to the establishment may be estimated on a reasonable basis. 3.     For the purpose of this Agreement the term "industrial or commercial profits" shall not include income in the form of rents, royalties, interest, dividends, management charges, remuneration for labour or personal services or income from the operation of ships or aircraft. ARTICLE IV Where--- a.     an enterprise of one of the territories, participates directly or indirectly in the management, control or capital of an enterprise of the other territory, or b.    the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory, and in either case conditions are made or imposed between the two enterprises, in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which but for those conditions would have accrued to one of the enterprises but by reason of those conditions have not so accrued may be included in the profits of that enterprise and taxed accordingly. ARTICLE V 1.     Income derived from the operation of aircraft by an enterprise of one of the territories shall not be taxed in the other territory, unless the aircraft is operated wholly or, mainly between places within that other territory. 2.     Paragraph (1) shall likewise apply in respect of participations in pools of any kind by enterprises engaged in air transport. ARTICLE VI 1.     When a resident of Greece, operating ships, derives profits from India through such operations carried on in India, such profits may be taxed in Greece as well as in India; but the tax so charged in India shall be reduced by an amount equal to 50 per cent thereof, and the reduced amount of Indian tax payable on the profits shall be allowed as a credit against Greek tax charged in respect of such income. The credit aforesaid shall not exceed the Greek tax charged in respect of such income. 2.       a.     When a resident of India, operating ships, derives profits from Greece, through such operations carried on in Greece, such profits may be taxed in Greece as well as in India, but the tax so charged in Greece shall be reduced by an amount equal to 50 per cent thereof and the reduced amount of Greek tax payable shall be allowed as a credit against Indian tax charged in respect of such income. The credit aforesaid shall not exceed the Indian tax charged in respect of such income. b.    Sub-clause (a) of clause (2) shall not, however, apply as long as the laws in Greece do not impose any tax on income derived from the operation of ships belonging to foreign enterprises operating in the Greek territory; in such cases, the only in India. 3.     Paragraphs (1) and (2) shall not apply to profits arising as a result of coastal traffic. 4.     The provisions of clause (1) shall not in case of India affect the application of sub-section (1 to (6) of section 172 of the Income-tax Act, 1961 for the assessment of profits from occasional shipping or tramp steamers; but the provisions of that clause will be applied, when an adjustment is to be made under sub-section (7) of the aforesaid section of the Income-tax Act, 1961 in such cases. ARTICLE VII Royalties derived by a resident of one of the territories from sources in the other territory may be taxed only in that other territory. In this Article, the term "Royalty" means any royalty or other like amount received as consideration for the right to use copyrights, artistic or scientific works, cinematographic films, patents, models, designs, plans, secret processes or formulae, trade-marks and other like property or rights, but does not include any royalty or other like amount in respect of the operation of mines, quarries or other natural resources. ARTICLE VIII Dividends paid by a company which is a resident of one of the territories to a resident of the other territory may be, taxed only in the first-mentioned territory. ARTICLE IX Interest on bonds, securities, notes, debentures or any other form of indebtedness, derived by a resident of one of the territories from sources in the other territory may be taxed only in that other territory. ARTICLE X Income from immovable property may be taxed only in the territory in which the property is situated. For this purpose any rent or royalty or other income derived from the operation of a mine, quarry or any other place of extraction of natural resources shall be regarded as income from immovable property. ARTICLE XI Capital gains derived from the sale, exchange or transfer of a capital asset, whether movable or immovable, may be taxed only in the territory in which the capital asset is situated at the time of such sale, exchange or transfer. ARTICLE XII 1.     Remuneration other than pensions and annuities, paid in Greece for services rendered therein out of public funds of India shall not be taxed in Greece unless the payment is made to a citizen of Greece. 2.     Remuneration other than pensions and annuities, paid in India for services rendered therein out of public funds of Greece shall not be taxed in India unless the payment is made to a citizen of India. 3.     The provisions of paragraphs (1) and (2) of this Article shall not apply to payments in respect of services in connection with any trade or business carried on by either of the Contracting Parties or political sub-divisions thereof for purposes of profit. 4.     The provisions of paragraphs (1) and (2) of this Article shall also apply to remuneration other than pensions and annuities paid by the Reserve Bank of India, the Public Railways Authorities and the Postal Administration of India and by the Bank of Greece, Greek State Railways and the Greek Postal and Telegraphic Administration. ARTICLE XIII Any pension or annuity derived by a resident of one of the territories from sources in the other territory may be taxed only in that other territory. ARTICLE XIV 1.     Profits or remuneration for professional services or for services as an employee (including services as a director) performed in one of the territories by an individual who is a resident of the other territory may be taxed only in the territory in which such services are performed. 2.     An individual who is a resident of India shall not be taxed in Greece on profits or remuneration referred to in paragraph (1) if--- a.     he is temporarily present in Greece for a period or periods not exceeding in the aggregate 183 days during the calendar year immediately preceding the relevant fiscal year, b.    the services are performed for or on behalf of a resident of India, c.     the profits or remuneration are subject to Indian tax, and d.    the profits or remuneration are not deducted in computing the profits of an enterprise chargeable to Greek tax. 3.     individual who is a resident of Greece shall not be taxed in India on the profits or remuneration referred to in paragraph (1) if--- a.     he is temporarily present in India for a period or periods not exceeding in the aggregate 183 days during the relevant "previous year", b.    the services are rendered; for or on behalf of a resi dent of Greece, c.     the profits or remuneration are subject to Greek tax, and d.    the profits or remuneration are not deducted in computing the profits of an enterprise chargeable to Indian tax. 4.     Where an individual permanently or predominantly performs services on ships or aircraft in international traffic operated by an enterprise of one of the territories, profits or remuneration from such services may be taxed, only by the country of which the individual is resident. ARTICLE XV A professor or teacher from one of the territories, who receives remuneration for teaching, during a period of temporary residence not exceeding two years, at a University, College, School or other educational institution in the other territory, shall not be taxed in that other territory in respect of that remuneration. ARTICLE XVI An individual from one of the territories who is temporarily present in the other territory solely--- a.     as a student at a university, college or school in such other territory, b.    as a business apprentice, or c.     as the recipient of a grant, allowance or award for the primary purpose of study or, research from a religious, charitable scientific or educational organisation shall not be taxed in the other territory in respect of remittances from abroad for the purposes of his maintenance, education or training in respect of a scholarship, and in respect of any amount representing remuneration for services rendered in that other territory, provided that such services are in connection with his studies or training or are necessary for the purpose of his maintenance. ARTICLE XVII 1.     The laws in force in either of the territories will continue to govern the assessment and taxation of income in the respective territories except where express provision to the contrary is made in this Agreement. 2.     Subject to the provisions of Article VI income from sources within Greece which under the laws of Greece and in accordance with this Agreement is subject to tax in Greece either directly or by deduction shall not be subject to Indian tax. 3.     Subject to the provisions of Article VI income from source within India which under the laws of India and in accordance with this Agreement is subject to tax in India either directly or by deduction shall not be subject to Greek tax. 4.     The graduated rate of Greek tax to be imposed on residents of Greece and the graduated rate of Indian, tax, to be imposed on residents of India may be calculated as though income which under this Agreement is not subject to Greek or Indian tax, as the case may be, were included in the amount of the total income. ARTICLE XVIII The competent authorities shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of the present Agreement. Any information so exchanged shall be treated as secret and shall not be disclosed to any persons other than those concerned with the assessment and collection of the taxes which are the subject of the present Agreement. No information as aforesaid shall be exchanged by the competent authority of one of the territories which would disclose any trade, business, industrial or professional secret or any trade, process to the authority of the other territory. ARTICLE XIX Where a resident of one of the territories shows proof that the action of the taxation authorities of the other territory has resulted or will result in double taxation contrary to the provisions of the present Agreement, he shall be entitled to present his case to the competent authority of the territory of which he is resident. Should his claim be deemed worthy of consideration, the competent authority to which the claim is made shall endeavour to come to an agreement with the competent authority of the other territory with a view to avoiding double taxation. ARTICLE XX 1.     The present Agreement shall be ratified and the instruments of ratification shall be exchanged at New Delhi as soon as possible. 2.     Upon exchange of the instruments of ratification, the present Agreement shall have effect:- a.     in India, for any year of assessment, beginning on or after the 1st April, 1964, b.    in Greece, for any fiscal year, beginning on or after the 1st January, 1964. ARTICLE XXI This Agreement shall continue in effect indefinitely but either of the Contracting Parties may on or before the 30th day of June in any calendar year after 1965 give to the other Contracting Party notice of termination, and in such event this Agreement shall cease to be effective- a.     in India, for any year of assessment beginning on or after the 1st April in the calendar year next following such written notice of termination, b.    in Greece, for any fiscal year beginning on or after the 1st January next following such written notice of termination. In witness whereof the undersigned duly authorised thereto have signed this Agreement and have affixed thereto their seals. Done at New Delhi on the 11th February, 1965; in duplicate in the English language. For the Republic of India: For the Royal Government of Greece: Sd/- RAMESHWAR SAHU, Sd/- GEORGE WARSAMY, Deputy Minister of Finance, Ambassador of Greece, Government of India. New Delhi.

Download Word Document In English. (Rs.85/-) Union of Soviet Socialist Republics AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE UNION OF SOVIET SOCIALIST REPUBLICS FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME Notification No. G. S. R. 812(E), dated 4th September, 1989. Whereas the annexed Agreement between the Government of the Republic of India and the Government of the Union of Soviet Socialist Republics for the avoidance of double taxation of income has come into force on the 5th June, 1989, after the notification by both the Contracting States to each other of the completion of the procedures required under their laws for bringing into force of the said Agreement in accordance with article 28 of the said Agreement; Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby directs that all the provisions of the said Agreement shall be given effect to in the Union of India. ANNEXURE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE UNION OF SOVIET SOCIALIST REPUBLICS FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME. The Government of the Republic of India and the Government of the Union of Soviet Socialist Republics, led by the desire to strengthen and develop friendly relations in economic, industrial, technical and cultural spheres, have resolved to conclude an Agreement for the avoidance of double taxation of income and have agreed as follows: Article 1 SCOPE OF THE AGREEMENT 1.     This Agreement shall apply to persons who for the purposes of taxation are deemed to be residents of one or both of the Contracting States. 2.       a.     This Agreement shall apply to the territory of each Contracting State, including its territorial sea, to its economic zone and its continental shelf, adjacent to the limits of its territorial sea, in respect of which it exercises, in conformity' with international law, sovereign rights for the purpose of exploration and exploitation of natural resources of such areas; b.    For the purposes of this Agreement, any reference to either Contracting State shall be deemed as reference to the territory of the respective State, including its territorial sea, to its economic zone and the regions of the continental shelf adjacent to the limits of the territorial sea of this State, which are mentioned in sub-paragraph (a). Article 2 TAXES COVERED 1.     The taxes to which this Agreement shall apply are: a.     in the Republic of India, the income-tax including any surcharge thereon (hereinafter referred to as " Indian tax "); b.    in the Union of Soviet Socialist Republics;                       i.        income-tax on foreign legal persons;                      ii.        income-tax on population; and                     iii.        tax on part of profits of a foreign participant of a joint venture imposed when it is transferred abroad (hereinafter referred to as " the USSR tax "). 2.     The Agreement shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of the present Agreement in addition to, or in place of, the taxes referred to in paragraph 1. 3.     Taxes mentioned in this article shall not include any penalty or interest imposed by either Contracting State relating to the taxes covered by this Agreement. Article 3 GENERAL DEFINITIONS 1.     In this Agreement, unless the context otherwise requires: a.     the terms " a Contracting State " and " the other Contracting State " mean the Republic of India (India) or the Union of Soviet Socialist Republics (the USSR), as the context requires; b.    the term " person " means an individual, and                       i.        in the case of India, also a company or any other entity which is treated as a taxable unit under the taxation laws in force in India;                      ii.        in the case of the USSR, also any legal person or other organisation, created under the laws of the USSR or any Union Republic and treated as a legal person for the purposes of taxation in the USSR; c.     the term " competent authority " means;                       i.        in the case of India, the Ministry of Finance (Central Government, Department of Revenue) or its authorized representative;                      ii.        in the case of the USSR, the Ministry of Finance of the USSR or its authorized representative; d.    the term " national " means:                       i.        in the case of India, any individual possessing the nationality of India and any legal person, partnership or association deriving its status from the laws in force in India;                      ii.        in the case of the USSR, any individual possessing the citizenship of the USSR and any legal person deriving its status from the laws in force in the USSR; e.     the term " international traffic " means any transport by a ship or aircraft operated by a resident of a Contracting State except when the ship or aircraft is operated solely between places in the other Contracting State; f.     the term " fiscal year " means:                       i.        in the case of India, the " previous year ", as defined in the Income-tax Act, 1961;                      ii.        in the case of the USSR, the period commencing on the 1st January and ending on the 31st of December. g.    As regards the application of the Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Agreement applies. Article 4 RESIDENT 1.     For the purposes of this Agreement, the term " resident of a Contracting State " means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. 2.     Where, by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then his status shall be determined as follows: a.     he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests); b.    if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode; c.     if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which is a national; d.    if each Contracting State regards him as a national of that State or if he is a national of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3.     Where, by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated. Article 5 PERMANENT ESTABLISHMENT 1.     For the purposes of this Agreement, the term " permanent establishment " means any fixed place of business through which a resident of a Contracting State carries on, wholly or partly, business in the other Contracting State. 2.     The term " permanent establishment " includes especially: a.     a place of management; b.    a branch; c.     an office; d.    a factory; e.     a workshop; f.     a mine, an oil or gas well, a quarry or any other place of extrac tion of natural resources; g.    a warehouse in relation to a person providing storage facilities for others; h.     a premises used as a sales outlet or for receiving or soliciting orders; i.      an installation or structure used for the exploration or exploitation of natural resources; j.      a building site or construction, installation or assembly project or supervisory activities in connection therewith, where such site, project or activities (together with other such sites, projects or activities, if any) continue for a period of more than 6 months or where such project or supervisory activity, being incidental to the sale of machinery or equipment, continues for a period not exceeding six months and the charges payable for the project or supervisory activity exceed 10 per cent. of the sale price of the machinery and equipment. However, the competent authorities of the Contracting States may in particular cases and by mutual agreement consider such activities as not constituting a permanent establishment also in cases when the duration of works on a building site or a construction or assembly project exceeds six months: Provided that for the purpose of this paragraph a resident of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State and to carry on business through that permanent establishment if it provides services or facilities in connection with or supplies plant and machinery on hire used or to be used in, the prospecting for, or extraction or production of mineral oils in that other State. 3.     Notwithstanding the preceding provisions of this article, the term " permanent establishment " shall not include: a.     the use of facilities solely for the purpose of storage or display of merchandise for the resident; b.    the maintenance of a stock of goods belonging to the resident, only for the purpose of storage or display; c.     the maintenance of a stock of goods or merchandise, belonging to the resident, solely for the purpose of processing by another person; d.    the maintenance of a fixed place of business solely for the purchase of goods or merchandise or for collecting information for the resident; e.     subject to the provisions of sub-paragraph (j) of paragraph 2 of this article, carrying out of mere supervision for a period not exceeding six months over construction and assembly works; f.     the maintenance of a fixed place of business solely for the purpose of carrying out of advertising or scientific research or any other activity of a preparatory or an auxiliary character, for the resident; g.    the maintenance of a fixed place of business for the display of goods and merchandise, belonging to the resident, at occasional exhibitions; h.     the maintenance of a fixed place of business solely for carrying out, for the resident, of one or several kinds of activities enumerated in sub-paragraphs (a) to (g), if the overall activity, being the result of carrying out of these kinds of activities, is of a preparatory or an auxiliary character. However, the provisions of sub-paragraphs (a) to (h) shall not be applicable where the resident of a Contracting State maintains any other fixed place of business in the other Contracting State for any purposes other than the purpose; specified in the said sub-paragraphs. 4.     Notwithstanding the provisions of paragraphs 1 and 2 where a person --other than an agent of an independent status to whom paragraph 5 applies--is acting in a Contracting State on behalf of a resident of the other Contracting State, that resident shall be deemed to have a permanent establishment in the first-mentioned State, if a.     he has and habitually exercises in that State an authority to conclude contracts on behalf of the resident, unless his activities are limited to the purchase of goods or merchandise for the resident b.    he has no such authority, but habitually maintains in the firstmentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the resident; c.     he habitually secures orders in the first-mentioned State, wholly or almost wholly for the resident itself or for the resident and other residents controlling, controlled by, or subject to the same common control, as that resident; or d.    in so acting, he manufactures or processes in that State for the resident goods or merchandise belonging to the resident. 5.     A resident of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status provided that such persons are acting in the ordinary course of their business. 6.     The fact that a person (other than an individual) who is a resident of a Contracting State controls or is controlled by a person (other than an individual), who is a resident of the other Contracting State or who carries on business in that other State (either through a permanent establishment or otherwise) shall not constitute one of those persons a permanent establishment of the other. Article 6 INCOME FROM IMMOVABLE PROPERTY 1.     Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2.     The term " immovable property " shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term, in the case of India, shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources. Ships, boats and aircraft shall not be regarded as immovable property. 3.     The provisions of paragraph 1 shall also apply to income derived from the direct use, letting, or use in any other form of immovable property. 4.     The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of a resident and to income from immovable property used for the performance of independent personal services. Article 7 BUSINESS PROFITS 1.     The profits of a resident of a Contracting State shall be taxable only in that State unless the resident carries on business in the other Contracting State through a permanent establishment situated therein. If the resident carries on business as aforesaid, the profits of the resident may be taxed in the other State but only so much of them as is directly or indirectly attributable to that permanent establishment. 2.     Subject to the provisions of paragraph 3, where a resident of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate resident engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the resident of which it is a permanent establishment. 3.     In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere, in accordance with the provisions of and subject to the limitations of the taxation laws of that State. 4.     No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods of merchandise for the resident. 5.     For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 6.     Where profits include items of income which are dealt with separately in other articles of this Agreement, then the provisions of those articles shall not be affected by the provisions of this article. 7.     Where: a.     a resident of a Contracting State participates directly or indirectly in the management, control or capital of a resident of the other Contracting State, or b.    the same persons participate directly or indirectly in the management, control or capital of a resident of a Contracting State and a resident of the other Contracting State, and in either case conditions are made or imposed between the two such residents in their commercial or financial relations which differ from those which would be made between independent residents, then any profits which would, but for those conditions, have accrued to one of the residents, but, by reason of those conditions, have not so accrued, may be included in the profits of that resident and taxed accordingly. Article 8 AIR TRANSPORT 1.     Profits derived by a resident of a Contracting State from the operation of aircraft in international traffic shall be taxable only in that State. 2.     The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 3.     For the purposes of this article, interest on funds connected with the operation of aircraft in international traffic shall be regarded as profits derived from the operation of such aircraft, and the provisions of article 11 shall not apply in relation to such interest. 4.     The term " operation of aircraft " shall mean business of transportation by air of passengers, mail, livestock or goods carried on by the owners or lessees or charterers of aircraft, including the sale of tickets for such transportation on behalf of other enterprises, the incidental lease of aircraft and any other activity directly connected with such transportation. Article 9 SHIPPING 1.     Income derived by a resident of a Contracting State from the operation of ships in international traffic shall be taxable only in that State. 2.     Notwithstanding the provisions of paragraph 1 of this article and article 15 of the Agreement between the Government of the Republic of India and the Government of the Union of Soviet Socialist Republics on merchant shipping, dated 19th July, 1976, income derived by a resident of a Contracting State from the operation of ships between the ports of the other Contracting State and the ports of third countries (in both directions) may be taxed in that other State, but the tax imposed in that other State shall be reduced by an amount equal to two thirds thereof. 3.     The provisions of paragraph 1 of this article shall also apply to income from participation in a pool, a joint business or an international operating agency engaged in the operation of ships. 4.     For the purposes of this article: a.     interest on funds connected with the operation of ships in international traffic shall be regarded as income from the operation of such ships and the provisions of article 11 shall not apply in relation to such interest; and b.    income from the operation of ships includes income derived from the use, maintenance or rental of containers (including trailors and related equipment for the transport of containers) in connection with the transport of goods or merchandise in international traffic. Article 10 DIVIDENDS 1.     Dividends paid by a legal person (in the case of India, a company) which is resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2.     However, such dividends may also be taxed in the Contracting State of which the legal person (in the case of India, a company) paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed 15% of the gross amount of the dividends. This paragraph shall not affect the taxation of the legal person (in the case of India, a company) in respect of the profits out of which the dividends are paid. 3.     The term " dividends " as used in this article means income from shares or other rights, not being debt claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the legal person (in the case of India, a company) making the distribution is a resident. In the case of the USSR, this term means especially part of profits of a joint venture established in conformity with the laws of the USSR which is attributable to its participant who is a resident of India, transferred from the USSR. 4.     The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the legal person (in the case of India, a company) paying the dividends is a resident, through a permanent establishment situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case, the provisions of article 7 shall apply. Article 11 INTEREST 1.     Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 15 per cent. of the gross amount of the interest. 3.     Notwithstanding the provisions of paragraph 2,-- a.     interest arising in a Contracting State shall be exempt from tax in that State provided it is derived and beneficially owned by:                       i.        the Government, a sub-division or a local authority of the other Contracting State; or                      ii.        the central bank of that other State; b.    interest arising in a Contracting State shall be exempt from tax in that State to the extent approved by the Government of that State if it is derived and beneficially owned by any person (other than a person referred to in sub-paragraph (a)) who is a resident of the other Contracting State provided that the transaction giving rise to the debt-claim has been approved in this regard by the Government of the first-mentioned State. 4.     The term " interest " when used in this article means income from debt-claims of every kind, bank deposits, government loans as well as any other income which is treated as interest in accordance with the laws of the State where such income arises. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5.     The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of article 7 shall apply. 6.     Interest shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a sub-division, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated. 7.     Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such a case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. Article 12 ROYALTIES AND FEES FOR TECHNICAL SERVICES 1.     Royalties and fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, or fees for technical services, the tax so charged shall not exceed: a.     Fifteen per cent. of the gross amount of the royalties relating to copyrights of literary, artistic or scientific works, other than cinematograph films or films or tapes used for radio or television broadcasting; and b.    Twenty per cent. of the gross amount of the royalties in all other cases or fees for technical services. 3.     The term " royalties " as used in this article means payments of any kind received as a consideration for the use of, or the right to use any copyright of literary, artistic or scientific work, including cinematograph films or films or tapes used for radio or television broadcasting, any patent, trade mark, design or model, plan, formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4.     The term " fees for technical services " as used in this article means payments of any kind to any person other than payments to an employee of a person making payments, in consideration for the services of a managerial, technical or consultancy nature, including the provision of services of technical or other personnel. 5.     The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties or fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or fees for technical services arise, through a permanent establishment situated therein, and the right, property or contract in respect of which the royalties or fees for technical services are paid is effectively connected with such permanent establishment. In such case the provisions of article 7 shall apply. 6.     Royalties and fees for technical services shall be deemed to arise in a Contracting State when the payer is that State itself, a sub-division, a local authority or a resident of that State. Where, however, the person paying the royalties or fees for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties or fees for technical services was incurred, and such royalties or fees for technical services are borne by such permanent establishment, then such royalties or fees for technical services shall be deemed to arise in the State in which the permanent establishment is situated. 7.     Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of royalties or fees for technical services paid exceeds the amount which would have been paid in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. Article 13 GAINS FROM ALIENATION OF PROPERTY 1.     Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 and situated in the other Contracting State may be taxed in that other State. 2.     Gains from the alienation of movable property forming part of the business property of a permanent establishment which a resident of a Contracting State has in the other Contracting State including such gains from the alienation of such a permanent establishment (alone or with the whole property) may be taxed in that other State. 3.     Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State of which the alienator is a resident. 4.     Gains from the alienation of shares of the capital stock of a legal person (in the case of India, a company) which is a resident of a Contracting State may be taxed in that State. 5.     Gains from the alienation of any property other than that mentioned in paragraphs 1, 2, 3 and 4 shall be taxable only in the Contracting State of which the alienator is a resident. Article 14 INDEPENDENT PERSONAL SERVICES 1.     Income derived by an individual who is a resident of a Contracting State from the performance of professional services or other independent activities of a similar character shall be taxable only in that State unless he is present in the other Contracting State for a period or periods amounting to or exceeding in the aggregate 90 days in the relevant fiscal year: in that case, such income may also be taxed in that other State, but only so much of it as is derived from his activities performed in that other State. 2.     The term " professional services " includes especially independent personal services of an individual in his capacity as a physician, teacher, architect, engineer and accountant. Article 15 INCOME FROM EMPLOYMENT 1.     Subject to the provisions of articles 16, 17, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2.     Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the firstmentioned State if: a.     the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant fiscal year; and b.    the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and c.     the remuneration is not borne by a permanent establishment which the employer has in the other State. 3.     Notwithstanding the preceding provisions in this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by a resident of a Contracting State may be taxed in that State. Article 16 DIRECTOR'S FEES Director's fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or similar body of a company or any other legal person which is a resident of the other Contracting State may be taxed in that other State. Article 17 INCOME EARNED BY ENTERTAINERS AND ATHLETES 1.     Notwithstanding the provisions of articles 14 and 15, income derived by a resident of a Contracting State as an entertainer such as a theatre, motion picture, radio or television artiste or a musician or as an athlete, from his personal activities as such exercised in the other Contracting State may be taxed in that other State. 2.     Where such income in respect of personal activities exercised by an entertainer or athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised. 3.     Notwithstanding the provisions of paragraph 1, income derived by an entertainer or an athlete who is a resident of a Contracting State from his personal activities as such exercised in the other Contracting State shall be taxable only in the first-mentioned State, if more than 50 per cent. of the expenses for such activities are supported from the public funds of the first-mentioned State, including any of its sub-divisions or local authorities. 4.     Notwithstanding the provisions of paragraph 2 and articles 7, 14 and 15, where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such in a Contracting State accrues not to the entertainer or athlete himself but to another person, that income shall be taxable only in the other Contracting State, if more than 50 per cent. of the expenses of such person are supported from the public funds of that other State, including any of its sub-divisions or local authorities. Article 18 REMUNERATION AND PENSIONS IN RESPECT OF GOVERNMENT SERVICES 1.       a.     Remuneration, other than a pension, paid by a Contracting State, or a sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State. b.    However, such remuneration shall be taxable only in the other Contracting State, if the services are rendered in that other State and the individual is a resident of that State who:                       i.        is a national of that State, or                      ii.        did not become a resident of that State solely for the purposes of rendering the services. 2.       a.     Any pension paid by, or out of funds created by a Contracting State, or a sub-division or a local authority thereof to an individual in respect of services rendered to that State or sub-division or authority shall be taxable only in that State. b.    However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of that other State. 3.     The provisions of articles 15, 16 and 19 shall apply to remuneration and pensions in respect of services rendered in connection with commercial activities. Article 19 PENSIONS Any pension, other than a pension referred to in article 18, derived by a resident of a Contracting State from sources within the other Contracting State may be taxed only in the first-mentioned State. Article 20 PAYMENTS RECEIVED BY STUDENTS, APPRENTICES, PROFESSORS, TEACHERS AND RESEARCH SCHOLARS 1.     A student or business apprentice who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State and who is present in that other State solely for the purpose of his education or training, shall be exempt from tax in that other State on payments derived from sources outside that other State for the purposes of his maintenance, education or training. 2.     Remuneration derived by a professor, a teacher or a research scholar who was, immediately before the visit to a Contracting State, a resident of the other Contracting State and visits the first-mentioned State with the aim of promoting his education, conducting research or teaching in an educational institution or a school shall not be taxable in the first-mentioned State during first two years of his activity. 3.     The provisions of paragraph 2 shall not apply to income from research if such research is undertaken primarily for the private benefit of a specific person or persons. Article 21 OTHER INCOME 1.     Items of income of a resident of a Contracting State which are not expressly dealt with in the foregoing articles of this Agreement shall be taxable only in that State. However, such items of income arising in the other Contracting State may also be taxed in that other State. 2.     The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such cases, the provisions of article 7 shall apply. Article 22 ELIMINATION OF DOUBLE TAXATION 1.     The laws in force in either of the Contracting States will continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Agreement. 2.     In the case of India, double taxation shall be avoided as follows: a.     where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in the USSR, India, shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in the USSR, whether directly or by deduction. Such deduction shall not, however, exceed that part of income-tax (as paid before the deduction is given), which may be attributable to the income which may be taxed in the USSR; b.    where a resident of India derives income which, in accordance with the provisions of this Agreement, shall be taxable only in the USSR. India may include this income in the tax base but shall allow as a deduction from the income-tax that part of the income-tax which is attributable to the income derived from the USSR. 3.     In the USSR, double taxation shall be eliminated in accordance with the laws of the USSR, due regard being had to the taxes paid or spared in India. Article 23 NON-DISCRIMINATION 1.     A Contracting State may not exercise in respect of a resident of the other Contracting State a higher or more burdensome taxation than taxation which that State would exercise in respect of a resident of a third State with which it did not conclude an agreement for the avoidance of double taxation. 2.     In this article, the term " taxation " means taxes covered by this Agreement. Article 24 MUTUAL AGREEMENT PROCEDURE 1.     Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Agreement, he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident. This case must be presented within three years of the date of receipt of notice of the action which gives rise to taxation not in accordance with the Agreement. 2.     The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the national laws of the Contracting States. 3.     The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement. 4.     The competent authorities of the Contracting States may communicate with each other, under the established procedure, for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a commission consisting of representatives of the competent authorities of the Contracting States. Article 25 EXCHANGE OF INFORMATION 1.     The competent authorities of the Contracting States shall exchange, to the extent permitted by their domestic laws, such information (including documents) as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the Agreement, in so far as the taxation thereunder is not contrary to the Agreement, in particular for the prevention of fraud or evasion of such taxes. Any information received by a Contracting State shall be treated as confidential in the same manner as information obtained under the domestic laws of that State. However, if the information is originally regarded as confidential in the transmitting State, it shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes which are the subject of the Agreement. Such persons or authorities shall use the information only for such purposes but may disclose the information in public court proceedings or in judicial decisions. The exchange of information or documents shall also be on request with reference to particular cases. 2.     In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: a.     to carry out administrative measures at variance with the laws or administrative practice of that or of the other Contracting State; b.    to supply information which is not obtainable under the laws or in the normal course of the administration of that or the other Contracting State; c.     to supply information which would disclose any trade, industrial, commercial or professional secret or trade process or information the disclosure of which would be contrary to the interests of the first-mentioned State. 3.     The competent authorities of the Contracting States shall notify each other of the changes which are made in their tax laws. Article 26 DIPLOMATIC AND CONSULAR ACTIVITIES Nothing in this Agreement shall affect the fiscal privileges of diplomatic or consular officials under the general rules of international law or under the provisions of special agreements. Article 27 EXISTING AGREEMENTS Nothing in this Agreement shall affect the provisions of existing agreements between the Contracting States to the extent that they have effect in respect of the taxes to which this Agreement applies. However, where any greater relief from these taxes is afforded by any provision of this Agreement, that provision shall apply. Article 28 ENTRY INTO FORCE Each of the Contracting States shall notify each other of the completion of the procedures required by its law for the bringing into force of this Agreement. This Agreement shall enter into force on the date of receipt of the later of these notifications and shall thereupon have effect: a.     in India, in respect of income arising in any fiscal year beginning on or after the first day of April next following the calendar year in which the agreement enters into force; b.    in the USSR, in respect of income arising in any fiscal year beginning on or after the first day of January next following the calendar year in which the Agreement enters into force. Article 29 TERMINATION 1.     This Agreement shall remain in force indefinitely, but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give the other Contracting State, through diplomatic channels, written notice of termination, and, in such event, this Agreement shall cease to have effect: a.     in India, in respect of income arising in any fiscal year beginning on or after the first day of April next following the calendar year in which the notice of termination is given; b.    in the USSR, in respect of income arising in any fiscal year beginning on or after the first day of January next following the calendar year in which the notice of termination is given. In witness whereof  the undersigned, being duly authorised thereto, have signed the present Agreement. Done  in duplicate at New Delhi this 20th day of November one thousand nine hundred and eighty-eight in the Hindi, Russian and English languages, all the texts being equally authentic. In case of divergence between any of the texts, the English text shall be the operative one. For the Government of the Republic of India (Sd.) P. K. Appachoo Joint Secretary to the Government of India. For the Government of the Union of Soviet Socialist Republics, (Sd.) V. M. Kamentsev. [No. 8442/F.No.503/1/88-FTD] ANNEXURE TEXT OF NOTIFICATION NO. GSR 952(E) DATED 30TH DECEMBER, 1992 GIVING EFFECT TO THE DECISION THAT THE AGREEMENTS CONCLUDED BY THE ERESTWHILE USSR WILL REMAIN IN FULL FORCE BETWEEN INDIA AND THE RUSSIAN FEDERATION. WHEREAS the agreements mentioned in the Schedule hereto were entered into between the Government of the Republic of India and the Government of the Union of the Soviet Socialist Republics; AND WHEREAS the Russian Federation has expressed its desire to exercise the rights and fulfil the obligations arising from the aforesaid Agreements concluded by the erstwhile Union of the Soviet Socialist Republics and to remain a party to the aforesaid Agreements; AND WHEREAS the Government of the Republic of Indiahas accepted and confirmed that the aforesaid Agreements shall remain in full force and effect between India and the Russian Federation; AND WHEREAS the Government of the Republic of India and the Russian Federation have agreed that the references in the aforesaid Agreements to "USSR", or "Union of Soviet Socialist Republics", or "SOVIET UNION", wherever they occur, shall be construed as references to "Russian Federation"; NOW, THEREFORE, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby directs that all the provisions of the aforesaid Agreements between the Government of the Republic of India and the Russian Federation shall be given effect to in the Union of India. SCHEDULE               i.        Agreement between the Government of India and the Union of Soviet Socialist Republics on Merchant Shipping signed at New Delhi on 19th July, 1976, and notified vide Government of India, Ministry of Finance (Department of Revenue) Notification No. 1588 [F. No. 501/1/73-73-FTD]/GSR No. 943(E), dated 23rd December, 1976, and modified by Notification F. No. 480/1/81-FTD/GSR No. 419(E), dated 31st May, 1984; and              ii.        Agreement between the Government of the Republic of India and the Government of the Union of Soviet Socialist Republics for the avoidance of double taxation of income signed at New Delhi on 20th November, 1988 and notified vide Government of India, Ministry of Finance (Department of Revenue) (Foreign Tax Division) Notification No. 8442 [F. No. 503/1/88-FTD]/GSR No. 812(E) dated 4th September 1989. AGREEMENT FOR AVOIDANCE OF DOUBLE TAXATION OF INCOME FROM MERCHANT SHIPPING WITH RUSSIAN FEDERATION Whereas the annexed Agreement between the Government of India and the Union of Soviet Socialist Republics on merchant shipping has been concluded; And where as Article XV of the said Agreement provides for the avoidance of double taxation in respect of taxes on income derived from the carriage of cargo; Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961) and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that the provisions of the said Article of the said Agreement shall be given effect to in the Union of India. Notification: No. GSR 943(E), dated 23rd December, 1976 as modified by GSR 419(E), dated 31 st May, 1984. TEXT OF AGREEMENT DATED 19TH JULY, 1976 REFERRED TO ABOVE The Government of the Republic of India and the Government of the Union of the Soviet Socialist Republics, being guided by the provisions of the Treaty of Peace, Friendship and Co-operation between the Republic of India and the Union of Soviet Socialist Republics, dated 9th August, 1971, proceedings from the common aspiration for all possible expansion and deepening of mutually beneficial economic and trade co-operation between the two countries as envisaged in the Agreement on the further Development of Economic and Trade Co-operation, dated 29th November, 1973, and desirous of developing merchant shipping of the two countries, have agreed as follows: ARTICLE I For the purposes of this Agreement,---- 1.     the term " vessel " of the Contracting party shall mean any merchant vessel playing under the national flag of the Party in accordance with its legislation. This definition excludes warships and fishing vessels from the sphere of application of this Agreement; 2.     the term " member of the crew " shall mean the master and any other person actually employed for duties on board during a voyage in the working or service of a vessel and included in the crew list. ARTICLE 2 The Contracting Parties shall grant all possible assistance to the vessels of the two countries and shall refrain from taking any action which might cause harm to the development of merchant shipping. ARTICLE 3 The Contracting Parties shall continue their efforts to maintain and develop effective working relationships between the authorities responsible for maritime affairs in their countries. In particular, the Contracting

Agreement for Building Where Owner Supplies Plot of Land Only. An Agreement made on the ………..day of …………….BETWEEN AB, etc. (hereinafter called the “contractor”) of the part and CD, etc, (hereinafter called the “owner”) of the second part. Whereas 1.     The party of the second part is the owner of the plot of land measuring …………..metres at………………and more particularly described in the plan attached and therein delineated as red. 2.     The owner being desirous of erecting building on the said plot has appointed Shri……………as the architect. 3.     The plans, designs, drawings and elevations of the said intended building and specifications of the works to be done and of the materials to be provided in and for the erection of the said building have been prepared by the purposes of identification by both the parties. 4.     The contractor is willing to enter into an agreement for the execution of the said works for the sum of Rs………….. Now it is hereby Mutully agreed as Follows: 1.     The contractor shall erect on the said plot of land a building in conformity with the plans, drawing and elevations and complete all the and workmanlike manner and to the satisfaction of the said architect and thesaid specifications, plans, drawings and elevations and of this agreement. 2.     The contractor will finish and compete the said building on or before the………………….day of……………..and if the said building shall not be completed on or before the said date the contractor shall forfeit, out of the moneys which shall be due which shall elapse after the……….day of ………..until the said building shall be completed : Provided that if the contractor is prevented by any strike among the workman or by reason of any event beyond his control, the said architect may extend the time for the completion of the works for such reasonable period as he may think fit. 3.     If the contractor shall become bankrupt, or sahll from any cause whatsoever be prevented from or delayed in proceeding with and completing the said works according to the terms and conditions of this agreement, or shall not proceed with the said works to the satisfaction of the said architect, it shall be lawful for the said architect to leave or cause to be left at the usual place of abode or business of the contractor, a notice or notices in writing for the said contractor to proceed regularly and effectually with the said contractor to proceed regularly and effectually with the said works and in case the said contractor shall , for 7 days after such notice is so left as aforesaid, make default in regularity and effectually proceeding with the said work it shall be lawful for the said architect to employ any other workmen either by contract or measure and value or otherwise to proceed with the said works and complete the same and pay to the said workmen out of the moneys which shall be then due to the said contractor on account of this agreement’s the amount of their charges for the same and ; for all necessary materials to be found and provided for such completion ; and if the amount of balance to the credit of the contractor be insufficient to cover such charges for workmen and materials as are last heretobefore directed to be paid there out, and then in such case the said contractor shall and will make good and pay such deficiency on demand. 4.     If the said architect shall at any time or times consider any of the workmen employed by the said contractor on the works as in any ways incompetent or as acting improperly it shall in every such case be lawful for the said architect to discharge such workman or workmen, and the said contractor shall without delay put another workman or other workmen in his or their place. 5.     In case any of the materials brought on the said premises by the said contractor shall be considered by the said architect unsound or in any respect improper, the said contractor will, upon notice in writing to him or his foreman on the premises given by the said architect cause the same to be removed from off the ground and proceed with the said works with materials corresponding with the said specifications and instructions and approved of by the said architect and on default of such removal within _____ days after such last mentioned notice, it shall be lawful for the said architect to cause the same to be removed to such place or places as he may think proper, without being in any way answerable or accountable for the loss or damage that shall happen to any materials so removed as aforesaid, and to cause proper materials to be substituted for the same, and to pay all expenses attending such removal and substitution out of the moneys which shall become due to the said contractor by virtue of this agreement. 6.     In case the said architect shall consider any part of the said works to have been executed in an unsound and improper manner, the said contractor will cause the same immediately to be taken down and executed in a proper manner to the satisfaction of the said architect without any extra charge or expense whatsoever. 7.     If the said architect or the parties hereto of the second part, shall think proper at any time or times to make any alterations or additions to or omission in the works hereby contracted for he or they shall give to the said contractor written instructions for such alterations or omissions signed by the said architect, but the said contractor shall not be considered to claim for the value or otherwise in respect thereof, without such written instructions so signed as aforesaid. Any additional charge by the contractor with respect to such alterations if certified to be correct by the architect shall be paid for in the same manner and at the same time as hereinafter expressed for the payment of the ultimate balance of the said sum of Rs………………. 8.     Any damage arising from accidents or carelessness of the workmen or otherwise to the said work hereby contracted for, or to the materials or implements therein used, shall be borne and effectually made good by the said contractor at his own costs and charges. 9.     The said contractor shall provide all the materials of the best kind available in the market for the said building in accordance with the specification mentioned above. 10.  The said contractor will not, unless with the consent of the said architect, make any sub-contract for the execution of the works hereby contracted for, or any part thereof, nor unless with such consent as aforesaid assign or underlet the present contract. 11.  The contractor shall be paid Rs……. as his remuneration for the labour supplied and material used by him for the aforesaid building in the following manner :Rs……. shall be paid by 12 monthly installments of Rs…… each, the first installment to be paid on ….. and the balance of Rs….. within three months of the completion of the building, provided that in the case of each payment the architect certifies that the work and materials to a sufficient amount shall have been done, executed or provided by the said contractor to the satisfaction of the said architect. Provided also that the said contractor shall not be entitled to payment or receive the said balance of Rs……. until the said architect shall certify under his own hand that whole of said works have been completed and finished to his satisfaction. The decision of the architect shall be binding on the parties and shall be final. In Witness Where of the parties hereto have signed this agreement on the day and year first written above. Download Word Document In English. (Rs.20/-) Download PDF Document In Marathi. (Rs.20/-)

Download Word Document In English. (Rs.30/-) Government of Yemen Arab Republic AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF YEMEN ARAB REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR TRANSPORT (Notification No. 7084 F. No. 50114183-FTD dt. 1-1-1987) G.S.R. 2(E).---Whereas the annexed Agreement between the Government of the Republic of India and the Government of Yemen Arab Republic for the avoidance of double taxation of income derived from International air transport has entered into force on 30-12-1986, the date of the signature thereon by the Contracting States, as required by Article 5 of the said Agreement; Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that all the provisions of the said Agreement shall be given effect to in the Union of India. ANNEXURE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF YEMEN ARAB REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR TRANSPORT THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF YEMEN ARAB REPUBLIC DESIRING TO CONCLUDE AN AGREEMENT FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR TRANSPORT HAVE AGREED AS FOLLOWS ARTICLE 1 Taxes Covered 1.     The existing taxes to which this Agreement shall apply are: a.     in the case of Yemen Arab Republic, the income tax including surcharge thereon imposed under the Law No.: 11-1973 (hereinafter referred to as "Yemeni Tax"); b.    in the case of India:                       i.        the income tax including any surcharge thereon imposed under the Income-tax Act, 1961 (43 of 1961),                      ii.        the surtax imposed under the Companies (Profits) Surtax Act, 1964 (7 of 1964). (herein after referred to as "Indian Tax"). 2.     This Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to or in place of the taxes referred to in paragraph 1 of this Article. The competent authorities of the Contracting States shall notify each other of any substantial changes which are made in their respective taxation laws. ARTICLE 2 Definitions 1.     In this Agreement, unless the context otherwise requires: a.     the term 'a Contracting State' and 'the other Contracting State' mean "Yemen Arab Republic" or "India", as the context requires b.    the term 'tax' means 'Yemeni tax' or 'Indian tax' as the context requires; c.     the term 'enterprise of a Contracting State' means an airline designated by each Contracting State; d.    the term 'international air traffic' means any transport by an aircraft operated by an enterprise of a contracting State, except when the aircraft is operated solely between places in the other Contracting State; e.     the expression 'operation of aircraft' means the business of carriage by air of passengers, livestock, goods or mail carried on by the owners of lessees or characters of aircraft, including the sale of tickets for such transportation on behalf of other #enterprises, the incidental lease of aircraft and any other activity directly connected with such transportation. 2.     In the application of the provisions of this Agreement by one of the Contracting States, any term used but not defined herein shall, unless the context otherwise requires, have the meaning which it has under the laws in force in that State relating to the taxes which are subject of this Agreement. ARTICLE 3 Avoidance of Double Taxation 1.     Profits derived by an enterprise of a Contracting State from the operation of aircraft in international traffic shall be exempted from tax in the other Contracting State. 2.     The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 3.     For the purpose of paragraphs 1 and 2, interest on funds connected with the operation of aircraft in international traffic shall be regarded as profits derived from the operation of such aircraft. ARTICLE 4 Residual Provisions The Laws in force in either of the Contracting States will continue to govern the assessment and taxation of income in the Contracting States except where express provision to the contrary is made in this Agreement. ARTICLE 5 Entry into Force Each State shall notify to the other the completion of the procedures required by its law for the bringing into force of this Agreement. The Agreement shall enter into force on the date of the signature thereon by the Contracting States. It shall, however, apply in relation to the income of the enterprise of each Contracting State from the date of, commencement of the operation of that enterprise in the other Contracting State. ARTICLE 6 Termination This Agreement shall continue in effect indefinitely but either Contracting State may, on or before the thirtieth day of June in any calendar year after the year 1991 give notice of termination to the other Contracting State and in such event this Agreement shall cease to be effective: a.     In Yemen Arab Republic, in respect of any year of tax commencing on or after the 1st day of January of the second calendar year following the year in which the notice is given; b.    In India, in respect of any assessment year commencing on or after the 1st day of April of the second calendar year following the year in which the notice is given. IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed the present Agreement. Done at New Delhi this thirtieth day of December One thousand nine hundred and eighty six in two originals in the Hindi, Arabic and English Languages, all texts being equally authentic. In the case of divergence amongst the three texts, the English text shall be the operative one. For the Government of the Republic of India (C. K. TIKKU) Chairman, Central Board of Direct Taxes and Secretary to the Government of India For the Government of Yemen Arab Republic Sd/- ALWAY ALSAMAN) Assistant Deputy Minister Ex-officio Additional -Ministry of Finance [F. No. 50114183-FTD] V. U. ERADI, Jt. Sec

Download Word Document In English. (Rs.30/-) People's Democratic Republic of Yemen AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE PEOPLE'S DEMOCRATIC REPUBLIC OF YEMEN FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR TRANSPORT. [Notification No. 8070 (F. No. 501/1/87-FTD) dated 12-8-1988] G.S.R. No. 857(E).---Whereas the annexed Agreement between the Government of the Republic of India and the Government of the People's Democratic Republic of Yemen for the avoidance of double taxation of income derived from international air transport has entered into force on 5-8-1988, the date of signature thereon by the Contracting States, as required by Article 5 of the said Agreement. NOW, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that all the provisions of the said Agreement shall be given effect to in the Union of India. ANNEXURE THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE PEOPLE'S DEMOCRATIC REPUBLIC OF YEMEN DESIRING TO CONCLUDE AN AGREEMENT FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR TRANSPORT HAVE AGREED AS FOLLOWS ARTICLE 1 Taxes Covered 1.     The existing taxes to which this Agreement shall apply are: a.     in the case of People's Democratic Republic of Yemen, the income-tax including surcharge thereon (hereinafter referred to as "Yemeni Tax"); b.    in the case of India:                       i.        the income-tax including any surcharge there on;                      ii.        the surtax (hereinafter referred to as "Indian Tax"). 2.     This Agreement shall also apply to any identical or substantialy similar taxes which are imposed after the date of signature of this Agreement in addition to or in place of the taxes refered to in paragraph 1 of this Article. The competent authorities of the Contracting States shall notify each other of any substantial changes which are made in their respective taxation laws. ARTICLE 2 DEFINITIONS 1.     In this Agreement, unless the context otherwise requires: a.     the terms 'a Contracting State' and 'the other Contracting State' mean "People's Democratic Republic of Yemen" or "India", as the context requires; b.    the term 'tax' means "Yemeni tax" or "Indian tax" as the context requires; c.     the term 'enterprise of a Contracting State' means airlines designated by each Contracting State; d.    the term 'international air traffic' means any transport by an aircraft operated by an enterprise of a Contracting State, except when the aircraft is operated solely between places in the other Contracting State; e.     the term 'operation of aircraft' means the transportation by air of passengers, livestock, goods or mail carried on by the owners or lessees or charterers of aircraft, including the sale of tickets for such transportation, the incidental lease of aircraft in cluding on a charter basis and any other activity directly connected with such transportation; f.     the term 'competent authority' means:                       i.        in the case of the People's Democratic Republic of Yemen, the Ministry of Finance or its authorised representative;                      ii.        in the case of India, the Central Government in the Department of Revenue or its authorised representative. 2.     In the application of the provisions of this Agreement by one of the Contracting States, any term used but not defined herein shall unless the context otherwise requires, have the meaning which it has under the laws in force in that State relating to the taxes which are subject of this Agreement. ARTICLE 3 AVOIDANCE OF DOUBLE TAXATION 1.     Income derived by an enterprise of a Contracting State from the operation of aircraft in international air traffic shall be exempted from tax in the other Contracting State. 2.     The provisions of paragraph 1 shall also apply to income from the participation in a pool, a joint airline business or an international operating agency. 3.     For the purpose of paragraphs 1 and 2, interest on funds connected with the operation of aircraft in international air traffic shall be regarded as income derived from the operation of such aircraft. ARTICLE 4 MUTUAL AGREEMENT PROCEDURE The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. ARTICLE 5 ENTRY INTO FORCE Each of the Contracting States shall notify to the other the completion of the procedures required by its law for the bringing into force of this Agreement. The Agreement shall enter into force on the date of signature thereon by the Contracting States, and shall thereupon have effect in respect of income arising in any fiscal year commencing on or after the 1st day of January, 1983. ARTICLE 6 TERMINATION This Agreement shall continue in effect indefinitely but either Contracting State may, on or before the thirtieth day of June in any calendar year after the year 1993 give notice of termination to the other Contracting State and in such event this Agreement shall cease to be effective in respect of income arising in any fiscal year commencing on or after the 1st day of January next following the calendar year in which the notice is given. IN WITNESS WHEREOF  THE undersigned, duly authorised thereto, have signed the present Agreement. Done  at New Delhi this Fifth day of August one thousand nine hundred and eighty eight in two originals in the Hindi, Arabic and English languages, all texts being equally authentic. In the case of divergence amongst the three texts, the English text shall be the operative one. For the Government of the Republic of India (Sd.) (P. K. APPACHOO) Joint Secretary to the Government of India. For the Government of the People's Democratic Republic of Yemen (Sd.) (H.E. MOHAMED BIN MOHAMED AL-HUBEISHI) Ambassador Extraordinary and Plenipotentiary of the People's Democratic Republic of Yemen [FM 501/1/87-FTD Notification No. 8070]

Download Word Document In English. (Rs.85/-) Thailand Double Taxation Avoidance Agreement Agreement between the Government of India and the Government of the Kingdom of Thailand for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect to taxes on income. Notification No. G.S.R.915(E),dtd. 27.6.1986. Whereas the annexed Convention between the Government of the Republic of India and the Government of the Kingdom of Thailand for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income has been ratified and the instruments of ratification exchanged as required by Article 28 of the said Convention on 13th March, 1986. Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that all the provisions of the said Convention shall be given effect to in the Union of India. ANNEXURE CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE KINGDOM OF THAILAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of India and the Government of the Kingdom of Thailand, DESIRING  to conclude a Convention for the Avoidance of Double Taxation and the Prevention of fiscal Evasion with Respect to Taxes on Income, HAVE AGREED  as follows: CHAPTER I SCOPE OF THE CONVENTION Article 1 PERSONAL SCOPE This Convention shall apply to persons who are residents of one or both of the Contracting States. Article 2 TAXES COVERED 1.     This Convention shall apply to taxes on income imposed on behalf of each Contracting State or of its political sub-divisions or local authorities, irrespective of the manner in which they are levied. 2.     There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, as well as taxes on the total amounts of wages or salaries paid by enterprises. 3.     The existing taxes to which this Convention shall apply are: - a.       In the case of India:                       i.        the income-tax including any surcharge there on imposed under the Income-tax Act, 1961 (43 of 1961). and                      ii.        the surtax imposed under the Companies (Profits) Surtax Act, 1964 (7 of 1964); (hereinafter referred to as " Indian tax "); b.      In the case of Thailand:                       i.        the income-tax; and                      ii.        the petroleum income-tax, (hereinafter referred to as " Thai tax "). 4.     The Convention shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of this Convention in addition to, or in place of, the taxes referred to in paragraph 3 of this Article. The competent authorities of the Contracting States shall notify each other of significant changes which have been made in their respective taxation laws. CHAPTER II DEFINITIONS Article 3 GENERAL DEFINITIONS 1.     For the purposes of this Convention, unless the context otherwise requires: a.     the term " India " means the territory of India and includes the territorial sea and airspace above it as well as any other maritime zone referred to in the Territorial Waters, Continental Shelf, Exclusive Economic Zone and other Maritime Zones Act, 1976 (Act No. 80 of 1976), in which India has sovereign rights and to the extent that these rights can be exercised therein in accordance with international law, as if such maritime zone is a part of the territory of India; b.    the term " Thailand " means the Kingdom of Thailand and includes any maritime area adjacent to the territorial waters of the Kingdom of Thai land which by Thai legislation, and in accordance with international law, has been or may hereafter be designated as an area within which the rights of the Kingdom of Thailand may be exercised; c.     the terms " a Contracting State " and " the other Contracting State " mean India or Thailand as the context requires; d.    the term " tax " means Indian tax or Thai tax, as the context requires; e.     the term " person " includes an individual, a company and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting States; f.     the term " company " means any body corporate or any entity which is treated as a company or a body corporate under the taxation laws in force in the respective Contracting States; g.    the terms " enterprise of a Contracting State " and " enterprise of the other Contracting State " mean, respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; h.     the term " competent authority " means in the case of India, the Central Government in the Ministry of Finance (Development of Revenue) or their authorised representative; and in the case of Thailand, the Minister of Finance or his authorised representative; i.      the term " national " means any individual possessing the nationality of a Contracting State and any legal person, partnership, association and any other entity deriving its status as such from the laws in force in a Contracting State; j.      the term " international traffic " means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except where the ship or aircraft is operated solely between places in the other Contracting State. 2.     In the application of the provisions of this Convention by one of the Contracting States, any term not defined herein shall unless the context otherwise requires, have the meaning which it has for the purposes of the laws in force in that State relating to the taxes which are the subject of this Convention. Article 4 RESIDENT 1.     For the purposes of this Convention, the term " resident of a Contracting State " means any person who, under the laws of that State, is liable to taxation therein by reason of his domicile, residence, place of incorporation, place of management or any other criterion of a similar nature. 2.     Where by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then his residential status for the purposes of this Convention shall be determined in accordance with the following rules: a.     He shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (hereinafter referred to as his " centre of vital interests "); b.    If the Contracting State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; c.     If he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; d.    If he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 3.     Whereby reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, then the competent authorities of the Contracting States shall settle the question by mutual agreement. Article 5 PERMANENT ESTABLISHMENT 1.     For the purposes of this Convention, the term " permanent establishment " means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2.     The term " permanent establishment " shall include:               i.        a place of management;              ii.        a branch;             iii.        an office;             iv.        a factory;              v.        a workshop;             vi.        a mine, a quarry, an oil or gas well or other place of extraction of natural resources;            vii.        a farm, plantation or other place where agricultural, forestry, plantation or related activities are carried on;           viii.        a building site or construction or assembly project or supervisory activities in connection therewith, where such site, project or activity continues for the same or a connected project for a period or periods aggregating more than 183 days;             ix.        a warehouse, in relation to a person providing storage facilities for others;              x.        the furnishing of services, including consultancy services, by a resident of one of the Contracting States through employees or other personnel, provided activities of that nature continue (for the same or a connected project) within the other Contracting State for a period or periods aggregating more than 183 days. 3.     Notwithstanding the preceding provisions of this Article, the term " permanent establishment " shall be deemed not to include: a.     the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; b.    the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; c.     the maintenance e of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; d.    the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise; e.     the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research, or for similar activities which have a preparatory or auxiliary character, for the enterprise. 4.     Notwithstanding the provisions of the preceding paragraphs a person (other than a broker, general commission agent or any other agent of an independent status to whom paragraph 5 applies) acting in a Contracting State on behalf of an enterprise of the other Contracting State shall be deemed to be a permanent establishment in the first-mentioned Contracting State, if: a.     he has and habitually exercises in the first-mentioned Contracting State in authority to conclude contracts for or on behalf of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise; b.    he habitually maintains in the first-mentioned Contracting State a stock of goods or merchandise belonging to that enterprise from which he regularly delivers goods or merchandise on behalf of the enterprise; or c.     he habitually secures orders in the first-mentioned State wholly or almost wholly for the enterprise or for the enterprise and other enterprises which are controlled by it or have a controlling interest in it. 5.     An enterprise of a Contracting State shall not be deemed to have a a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, where such persons are acting in the ordinary course of their business. This shall not apply if such broker or agent carries on in that other State an activity descripted in paragraph 4 wholly or almost wholly for the enterprise itself or for the enterprise and other enterprises which are controlled by or have a controlling interest in it. 6.     The fact that a company, which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other Contracting State (whether through a permanent establishment or otherwise), shall not, of itself, constitute either company a permanent establishment of the other. 7.     Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in regard to reinsurance, be deemed to have a permanent establishment in the other State if it collects premiums in the territory of that State or insures risks situated therein through an employee or through a representative who is not an agent of an independent status within the meaning of paragraph 5 of this Article. CHAPTER III TAXATION OF INCOME Article 6 INCOME FROM IMMOVABLE PROPERTY 1.     Income from immovable property (including income from agriculture of forestry) may be taxed in the Contracting State in which such propery is situated. 2.     The term " immovable property " shall have the meaning which it has under law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property. 3.     The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property. 4.     The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services. Article 7 BUSINESS PROFITS 1.     The income or profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the income or profits of the enterprise may be taxed in the other State but only so much of them as is attributable to- a.     that permanent establishment; b.    sales in that other State of goods or of the same or similar kind as those sold though that permanent establishment; or c.     other business activities carried on in that other State of the same or similar kind as those effected through that permanent establishment. 2.     Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the income or profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3.     In the determination of the income or profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. 4.     Insofar as it has been customary in a Contracting State to determine the income or profits to be attributed to a permanent establishment on the basis of a certain percentage of the gross receipts of the enterprise or on the basis of an apportionment of the total income or profits of the enterprise to its various parts, nothing in paragraph 2 of this Article shall preclude that Contracting State from determining the income or profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article. 5.     No income or profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishemnt of goods or merchandise for the enterprise. 6.     For the purposes of the preceding paragraphs, the income profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 7.     Where income or profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. Article 8 SHIPPING AND AIR TRANSPORT 1.     Income derived by an enterprise of a Contracting State from the operation of aircraft in international traffic shall be taxable only in that Contracting State. 2.     Income derived by an enterprise of a Contracting State from the operation of ships in international traffic may be taxed in the other Contracting State, but the tax imposed in that other Contracting State shall be reduced by an amount equal to 50 per cent thereof. 3.     The provisions of paragraphs 1 and 2 of this Article shall also apply to income from the participation in a pool, a joint business or an international operating agency in the operation of aircraft or ships. 4.     For the purposes of paragraphs 1 and 2, interest on funds connected with the operation of ships or aircraft in international traffic shall be regarded as income from the operation of such ships or aircraft. 5.     The term " operation of ships or aircraft " shall mean business of transportation of persons, mail, livestock or goods by the ships or aircraft, including the incidental lease of ships or aircraft and any other activity directly connected with such transportation. Article 9 ASSOCIATED ENTERPRISES Where: a.     an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b.    the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State, and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but by reason of those conditions, have not so accrued may be included in the profits that enterprise and taxed accordingly. Article 10 DIVIDENDS 1.     Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2.     However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that State, but if the beneficial owner of the dividends is a company which is a resident of the other Contracting State, the tax shall not exceed- a.     15 per cent of the gross amount of dividends, in a case where the company paying the dividends is engaged in an industrial undertaking and the beneficial owner of the dividends is a company of the other Contracting State owning at least 10 per cent of the voting shares of the company paying the dividends. b.    in the case not covered by sub-paragraph (a) above, 20 per cent of the gross amount of dividends if the company paying the dividends is engaged in an industrial undertaking or if the beneficial owner of the dividends is a company of the other Contracting State owing at least 25 percent of the voting shares of the company paying the dividends. 3.     a.     The term " dividends " as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights assimilated to income from shares according to the taxation laws of the Contracting State of which the company making the distribution is a resident. b.    In this Article, the term " industrial undertaking " means an undertaking falling under any of the classes mentioned below:                       i.        manufacturing, assembling and processing;                      ii.        construction, civil engineering and shipbuilding;                     iii.        production of electricity, hydraulic power or gas or the supply of water;                     iv.        agriculture, forestry and fishery and the carrying on of a plantation;                      v.        any other undertaking entitled to the privileges accorded under the laws of either Contracting State on the promotion of industrial investment; and                     vi.        any other undertaking which may be declared to be an " industrial undertaking " for the purposes of this Article by the competent authority of the Contracting State in which the undertaking is situated. 4.     The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment situated therein or performs in that other State independent personal services from a fixed base situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply. 5.     Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. Article 11 INTEREST 1.     Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such interest may be taxed in the Contracting State in which it arises, and according to the laws of that State, but the tax so charged shall not exceed: a.     10 per cent of the gross amount of the interest if it is received by any financial institution (including an insurance company); b.    in all other cases, 25 per cent of the gross amount of the interest. 3.     Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from tax in that State if - a.     the recipient of the interest is the government, or local authority or the Central Bank of the other Contracting State; or b.    the interest is paid to any agency or insitution including a financial institution which may be agreed upon for the purposes of this paragraph by the Competent authorities of the Contracting States. 4.     The term " interest " as used in this Article means income from debt-claims of every kind, whether or not secured by mortage and whether or not carrying a right to participate in the dedtor's profits, and in particular, income from government securities and income from bonds or debentures, inculding premiums and prizes attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation laws of the contracting State in which the income arises. 5.     The provisions of paragraph 1 and 2 shall not apply if the recipient of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or perfroms in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply. 6.     Interest shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by that permanent establishment or fixed base, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated. 7.     Where, owing to a special relationship between the payer and the recipient or between both of them and some other person the amount of the interest paid, having regard to the debt-claims for which it is paid exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. Article 12 ROYALTIES 1.     Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2.     However, such royalties may be taxed in the Contracting State in which they arise, but the tax so charged shall not exceed 15 per cent of the gross amount of royalties. 3.     The term " royalties " as used in this Article means payments of any kind received as a consideration for the alienation or the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematograph films, phonographic records, and films or tapes for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4.     The provisions of paragraphs 1 and 2 shall not apply if the recipient of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provision of Article 7 or Article 14, as the case may be, shall apply. 5.     Royalties shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated. 6.     Where owing to a special relationship between the payer and the recipient or between both of them and some other the amount of royalties paid, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State due regard being had to the other provisions of this Convention. Article 13 CAPITAL GAINS 1.     Gains from the alienation of immovable property, as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated. 2.     Gains from the alienation of movable property forming part of the business property of a permanent establishment, which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in that other State. 3.     Notwithstanidng the provisions of paragraph 2, gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft which it operates in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in that State. 4.     Gains derived by a resident of a Contracting State from the alternation of any property other than those mentioned in paragraphs 1,2 and 3 above and Article 12 shall be taxable only in that State. ARTICLE 14 INDEPENDENT PERSONAL SERVICES 1.     Income derived by a resident of a Contracting State in respect of professional services or other independent activities or a similar character shall be taxable only in that State unless such activites were performed in the other Contracting State. Income in respect of professional services or independent activities performed within that other State may be taxed by that other State. 2.     Notwithstanding the provisions of paragraph 1, income derived by a resident of a Contracting State in respect of professional services or other independent activities performed in the other Contracting State shall not be taxable in the other State if: a.     the recipent is present in the other State for a period or periods nor exceeding the aggregate 183 days in the relevant " previous year " or " tax year " concerned, as the case may be. b.    the recipent does not maintain a fixed base in the other State for a period or periods exceeding in the aggregate 183 days in such year, and c.     the income is not borne by an enterprise or a permanent establishment situated in that other State. 3.     The term " professional services " includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 DEPENDENT PERSONAL SERVICES 1.     Subject to the provisions of Articles 16, 17, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employement is so exercised, such remuneration as is derived therefrom may be in that other Contracting State. 2.     Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: a.     the recipient is presents in the other State for or periods not exceeding in the aggregate 183 days in the relevant " previous year " or " tax year " concerned as the case may be, and b.    the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and c.     the remuneration is not borne by an enterprise of the other Contracting State or by a permanent establishment or a fixed base which the employer has in the other State. 3.     Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship operated in international traffic by an enterprise of a Contracting State shall be taxable only a that State. Article 16 DIRECTORS'FEES AND REMUNERATION OF TOP-LEVEL MANAGERIAL OFFICIALS 1.     Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the Board of Directors of a company which is a resident of the other Contracting State may be taxed in that other State. 2.     Salaries, wages and other similar remuneration derived by a resident of a Contracting State in his capacity as an official in a top-level managerial position of a company which is a resident of the other Contracting State may be taxed in that other State. Article 17 ARTISTES AND ATHELETES 1.     Notwithstanding the provisions of Articles 14 and 15, income derived by public entertainers, such as theatre, motion picture, radio or television artistes, and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which these activities are performed. 2.     Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues no to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised. 3.     Notwithstanding the provisions of Article 7, where the activities mentioned in paragraph 1 of this Article are provided in a Contracting State by an enterprise of the other Contracting State the profits derived from providing these activities by such an enterprise may be taxed in the first-mentioned Contracting State unless the enterprise is substantially supported by the public funds of the other Contracting State, including any political sub-division, local authority or statutory body thereof, in connection which the provisions of such activities. 4.     The provisions of paragraphs 1 and 2 of this Article shall apply to remuneration or profits, salaries, wages and similar income derived from activities performed in a Contracting State by public entertainers or athletes if the visit to that Contracting State is substantially supported by public funds of the other Contracting State, including any political sub-division, local authority, statutory body thereof. Article 18 GOVERNMENTAL FUNCTIONS 1.     Remuneration (not being a pension) paid by the Government of a Contracting State to any individual who is a citizen of that State in respect of services rendered in the discharge of governmental functions in the other Contracting State shall be taxable only in the first-mentioned Contracting State. 2.     Any pension paid by the Government of one of the Contracting States to any individual may be taxed in that Contracting State. 3.     The provisions of paragraphs 1 and 2 shall not apply to remuneration and pensions in respect of services rendered in connection with any business carried on by the Government of either of the Contracting States for the purposes of profit 4.     For the purposes of this Article, the term " Goverment " shall include any State Government or local or statutory authority of either Contracting State and in particular the Reserve Bank of India and the Bank of Thailand. Article 19 NON-GOVERNMENT PENSIONS AND ANNUITIES 1.     Any Pension (other than a pension referred to in Article 18) or annuity derived by a resident of a Contracting State from sources within the other Contracting State may be taxed only in the first-mentioned Contracting State. 2.     The term " pension " means a periodic payment made in consideration of services rendered in the past or as compensation for injuries related in the course of performance of services. 3.     The term " annuity " means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth. Article 20 Students and Apprentices A student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely far the purpose of his education or training, shall be exempt from tax in the first-mentioned Contracting State on: a.     the grant, allowance or award for the purposes of his maintenance, education or training; b.    payments made to him by persons residing outside that first-mentioned Contracting State for the purposes of his maintenance, education or training; and c.     remuneration from employment in that first-mentioned Contracting State, in an amount not in excess of Rs. 15,000 or its equivalent in Thai currency during any " previous year " or " tax year ", as the case may be, provided that such employment is directly related to his studies or is undertaken for the purpose of his maintenance. Article 21 PROFESSORS, TEACHERS AND RESEARCH SCHOLARS 1.     A professor, teacher or research scholar who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State at the invitation of that other Contracting State or of a university, college, school or other approved institution in that other Contracting State for the purpose of teaching or engaging in research, or both, at the University, college, school or other approved institution, shall be exempt from tax in that other Contracting State on any remuneration for such teaching or research for a period not exceeding two years from the date of his arrival in that other Contracting State. 2.     This Article shall only apply to income from research it such research is undertaken by the individual for the public interest and not primarily for the benefit of some other private person or persons. 3.     For the purposes of this Article and Article 20, an individual shall be deemed to be a resident of a Contracting State if he is resident in that Contracting State in the " previous year " or the " tax year " as the case may be, in which he visits the other Contracting State or in the immediately preceding " previous year " or the " tax year ". 4.     For the purposes of paragraph 1, " approved institution " means an institution which has been approved in this regard by the competent authority of the concerned Contracting State. Article 22 Other Income Items of income of a resident of a Contracting State, wherever arising, not expressly dealt with in the foregoing Articles may be taxed in that State. Such items of income may also be taxed in the Contracting State where the income arises. CHAPTER IV METHODS FOR ELIMINATION OF DOUBLE TAXATION Article 23 ELIMINATION OF DOUBLE TAXATION 1.     The laws in force in either of the Contacting States shall continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Convention. 2.     The amount of Thai tax payable, under the laws of Thailand and in accordance with the provisions of this Convention, whether directly or by deduction, by a resident of India, in respect of profits or income arising in Thailand, which has been subjected to tax both in India and in Thailand, shall be allowed as a credit aganist the Indian tax payable in respect of such profits or income provided that such credit shall not exceed the Indian tax (as computed before allowing any such credit) which is appropriate to the profits or income arising Thailand Further, where such resident is a company by which sur-tax is payable in India, the credit aforesaid shall be allowed in the first instance against income-tax payable by the company in India and as to the balance, if any, against surtax payable by it in India. 3.     For the purposes of the credit referred to in paragraph 2, the term " Thai tax payable " shall be deemed to include any amount which would have been payable as Thai tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under the provisions of the Investment Promotion Act (B.E. 2520) or of the Revenue Code (B.E. 2481) which are designed to promote economic development in Thailand or which may be introduced hereafter in modification of, or in addition to, the existing laws for promoting economic development in Thailand. 4.     The amount of Indian tax payable under the laws of India and in accordance with the provisions of this Convention, whether directly or by deduction, by a resident of Thailand, in respect of profits or income arising in India, which has been subjected to tax both in India and Thailand, shall be allowed as a credit against Thai tax payable in respect of such profits or income provided that such credit shall not exceed the Thai tax (as computed before allowing any such credit) which is appropriate to the profits or income arising in India. 5.     For the purposes of the credit referred to in paragraph 4, the term " Indian tax payable " shall be deemed to include any amount which would have been payable as Indian tax for any assessment year but for an exemption or reduction of tax granted for that year or any part thereof by the special incentive measures under the provisions of the Income-Tax Act, 1961 (43 of 1961). which are designed to promote economic development, or which may be introduced hereafter in modification of, or in addition to, the existing provisions for promoting economic development in India. 6.     Where under this Convention a resident of a Contracting State is exempt from tax in that Contracting State in respect of income derived from the other Contracting State, then the firstmentioned Contracting State may, in calculating tax on the remaining income of that person, apply the rate of tax which would have been applicable if the income exempted from tax in accordance with this Convention had not been so exempted. CHAPTER V SPECIAL PROVISIONS Article 24 NON-DISCRIMINATION 1.     The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may subjected. 2.     The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities in the same circumstances. 3.     Nothing contained in this Article shall be construed as obliging a Contracting State to grant to person not resident in that State any person allowances, reliefs and reductions for taxation purposes which are by law available only to persons who are so resident. 4.     Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirement to which other similar enterprises of that first-mentioned State are or may be subjected in the same circumstances. 5.     In this Article the term " taxation " means taxes which are the subject of this Convention. Article 25 MUTUAL AGREEMENT PROCEDURE 1.     Where a resident of a Contracting State consider that the actions of one or both or the Contracting States result or will result for him in taxation not in accordance with this Convention he may, notwithstanding the remedies provided by the national laws of those State, present his case to the competent authority of the Contracting State of which he is a resident. This case must be presented within three years of the date of receipt or notice of the action which gives rise to taxation not in accordance with the Convention. 2.     The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention. 3.     The competent authorities of the Contracting, States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4.     The competent authorities of the Contracting States may communicate with each other directly for the pruposes of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through Commission consisting of representatives of the competent authorities of the Contracting States. Article 26 EXCHANGE OF INFORMATION 1.     The competent authorities of the Contracting States shall exchange such information or document as is carrying out the provisons of this convention or for the prevention of fraud or evasion of taxes which are the subject of this Convention. Any information or document received by a Contracting State shall be treated as secret in the same manner as information or document obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information or document only for such purposes. They may disclose the information or document in public court proceedings or in judicial decisions. 2.     The exchange of information or document shall either on a routine basis or on request with reference to particular cases or both. The competent authorities of the Contracting States shall agree from time to time on the list of the information or documents which shall be furnished on a routine basis. 3.     In no case shall the provisions of paragraph 1 be construed so to impose on a Contracting State the obligation: a.     To carry out administrative measures at variance with the laws or administrative practice of that or of the other Contracting State; b.    to supply information or documents which are not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; c.     to supply information or documents, which would disclose any trade, business, industrial, commercial or professional secret or trade process or information the disclosure of which would be contrary to public policy. Article 27 DIPLOMATIC AND CONSULAR ACTIVITIES Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officials under the general rules of international law or under the provisions of special agreement. CHAPTER VII FINAL PROVISIONS Article 28 ENTRY INTO FORCE 1.     This Convention shall be ratified and the instruments of ratification shall be exchanged at Banfkok as soon as possible. 2.     This Convention shall enter into force upon the exchange of the instruments of ratification and shall have effect: a.     in India, in respect of income derived during the " previous year " begining on or after the first day of January of the calender year next following the calender year in which the instruments of ratification are exchanged; b.    in Thailand, in respect of income derived during " tax years " or " accounting periods " beginning on or after the first day of January of the calender year next following the calendar year in which the insturments of ratification are exchanged. Article 29 TERMINATION This Convention shall remain in force indefinitely but either Contracting State may terminate the Convention, through diplomatic channels, by giving to the other Contracting State, written notice of termination on or before June 30th of any calender year after the expiration of five years from the year in which the Convention entered into force. In such event, the Convention shall cease to have effect: a.     in India, in respect of income derived during the " previous year " begining on or after the first day of January of the calender year next following the calender year in which the notice is given; b.    in Thailand, in respect of income derived during " tax years " or " accounting periods " beginning, on or after the first day of January of the calender year next following the calendar year in which the notice is given. In witness whereof the undersigned, duly authorised thereto by their respective governemnts, have signed this Convention. Done at New Delhi on this 22nd day of march, one of thousand nine hundred and eighty five, in six originals, two each in the Hindi, Thai and English languages, all texts being equally authentic, except in case of divergence when the English text shall prevail. For the government of Republic of India For the Government of the Kingdom of Thailand (VISWANATH PRATAP SINGH) Air Chief Marshal Minister of Finance (SIDDHI SAVETSILA) Minister of Foreign Affairs Memorandum of Understanding with respect to the Double taxation Convention between the Kingdom of Thailand and the Republic of India It is understood that: 1.     The term " tax " as defined in paragraph 1 (d) of Article 3 of this amount Convention shall be interpreted not to include any amount which is payable in respect of any default or omission in relation to the taxes to which this Convention applies or which represents a penalty imposed relating to those taxes. 2.     Nothing in paragraph 5 of Article 10 of this Convention shall be construed so as to prevent Thailand from impossing tax on the disposal of profits (not in the form of dividends) in accordance with Section 70 bis of theThai Revenue Code. 3.     With reference to paragraph 2 of Article 26, any agreement reached by the two competent authorities shall be implemented notwithstanding any time limits in the domestic laws of the Contracting States provided that the implementation of such agreement will be beneficial to the tax-payer concerned. 4.     In case Thailand grants reduction from tax of an amount more than 50 per cent thereof on income derived from the operation of ships in international traffic by a resident of any country, paragraph 2 of Article 8 of the Convention shall be reconsidered with a view to granting, on the basis of reciprocity, the same reduction from tax on income of shipping companies which are residents of India. For the government of Republic of India For the Government of the Kingdom of Thailand (VISWANATH PRATAP SINGH) Air Chief Marshal Minister of Finance (SIDDHI SAVETSILA) Minister of Foreign Affairs (F. No. 145/4/71-FTD) Notification No.6780 V. U. ERADI, Jt. Secy Notification No.6780 [F. No. 145/4/71--- FTD]

Building Agreement between the Owners and the Contractor on Fee Plus Cost of Labour and Materials Download Word Document In English. (Rs.30/-) THIS AGREEMENT made at......................... on this................ day of............... 2000, between A Co. Ltd., a company incorporated under the Companies Act, 1956 and having its registered office at.................... (Hereinafter called the "owners", which expression shall, unless repugnant to the context or meaning thereof, be deemed to include its successors and assigns) of the ONE PART and Z Co. Ltd., a company incorporated under the Companies Act, 1956, and having its registered office at......................... (Hereinafter called the "Contractors", which expression shall unless repugnant to the context or meaning thereof, be deemed to include its successors and assigns) of the OTHER PART. WHEREAS the owners are absolutely seized and possessed of the plot of land or otherwise well and sufficiently entitled to the plot of land bearing No........ City Survey No............. Village No.............. Tehsil and District..........................., which land, is more particularly described in the First Schedule hereunder written and referred to as "the said land". AND WHEREAS the owners are desirous of constructing flats for its executives to as per site plans prepared by............................ the architects and approved by the Municipal Corporation of..................................true copies whereof are annexed hereto, and marked as Annexure A for the purpose of reference. AND WHEREAS the contractors have offered to construct the said flats according to the said plan (hereinafter referred to as the said works) on the fee plus cost system and on the terms and conditions mentioned hereafter. NOW IT IS AGREED BY THE PARTIES AS UNDER: 1.     That the contractors agree to construct the flats in accordance with the site plans annexed hereto and marked as Annexure A, strictly in accordance with the specifications and conditions of contract set out in Second and Third Schedules hereunder written; provided that the owners shall be entitled to require such changes or alterations in the said plans, as they may deem necessary to suit their requirements and the contractors agree to undertake to get the said alterations or changes approved by the Municipal Corporation of................ and execute the said alterations or changes. 2.     The contractors will abide by the directions of............. Architects, during the progress of the said works and will complete the said works agreed to be done on or before the expiry of................. Months from the date of execution of these presents. The contractors undertake that they will execute the said works in the best and soundest way and in the most economical manner keeping the interest of the owners in view. 3.     The owners agree to pay to the contractors the remuneration of Rs............. and shall reimburse them the expenses incurred by them in connection with the completion of the said works such costs to include the following items:                       i.                Material for construction such as cement, steel, lime, wood, plumbing materials, etc.                      ii.                Wages paid to the workmen labor and employees employed for the execution of the works.                     iii.                Salaries of artisans, overseers and engineers employed for the execution of the works.                     iv.                Expenses incurred by staff, overseers and engineers for travelling, transporting and hotel bills in discharge of duties in connection with the construction.                      v.                Obtaining of permission and approvals from all the authorities concerned for the construction, supply of power, drainage and other services for the said works.                     vi.                Cost of tools not owned by the workmen, canvas and plank, etc., consumed or rendered unfit during the execution of the said work.                    vii.                Other incidental expenses relating to the execution of the said works. The cost of the above items shall not be higher than the market rates paid in the locality of the work. The cost reimbursable to the contractors shall not include the salary of the regular employees of the contractors or interest on capital employed by the contractors for the execution of the said work. 4.     The contractors shall keep full and regular account of all materials brought on the site, consumed and balance lying on the site. The said account books shall be open to inspection to the owners or their representatives at all reasonable times, who shall be entitled to take the copy of any document, register, correspondence or account maintained by the contractors. 5.     The contractors shall submit a bill on 10th of each month to the architect showing in detail the moneys paid by them on account of the cost of the work during the previous month for which they have to be reimbursed under the agreement, with original receipted bills and original rolls for labour checked and certified by the contractor's Chartered Accountants. 6.     The architect will certify the reasonableness of each bill supported by the vouchers of expenses and the certificate of architect as to the reasonableness or otherwise shall be final on the contractors. If the architect certifies that any bill submitted by the contractors is on higher side, then he (the architect) shall certify the market rate of the items of the said bill, (which shall be based on quotations from three reputed dealers) and the owners shall make payment of that bill in terms of the architect's certificate. 7.     The owners will pay the amount of each bill within a period of 15 days from the date of receipt of the bill duly certified by the architect, in their office. 8.     The contractors shall be responsible for injury to persons, animals or things and for all structural damages to the property which may arise from the operation or neglect of the contractors or their employees, nominees, sub-contractors or their employees, whether such injury or damages arises from carelessness, accident or any other cause whatsoever in any way connected with the carrying out of construction pursuant to these presents. 9.     The contractors shall indemnify and keep the owners harmless against any claims, demands, actions or proceedings that may be made or adopted against the owners or that may be suffered by the owners by reason of anything done by the contractors pursuant to any work done by them in execution of the said works. 10.  The contractors shall during the execution of the said works insure them against destruction or damage by fire, earthquake, flood, cyclone, etc., to its full insurable value and keep insured until the possession of the buildings complete in all respects and fit for occupation is handed over to the owners. 11.  If the contractors fail to commence the work or without any lawful excuse under these conditions suspend the progress of the works for fourteen days after receiving from the architect the notice to proceed or persistently or repeatedly refuse or fail to supply properly skilled workmen to proper material or persistently disregard the- regulations, instructions or directions of the local or other authority or violate the terms of this agreement or fail to proceed the works with such due diligence and fail to make such due progress as would enable the works to be completed within the time agreed upon and the architect has certified that sufficient causes exist to justify the termination of the contract, then the owners may terminate the contract after giving the contractors seven days notice of their intention to do so. On such termination, the owners or their servants may enter upon and take possession of the works and tools, scaffolding, sheds and other materials lying upon the premises and use the same as their own property or may employ the same by means of its own servants and workmen in carrying on and completing the works or by employing any other contractor or other person or persons to complete the works and the contractors shall not in any way interrupt or do any act, matter or thing to prevent or hinder such other contractors or other person or persons employed for completing and finishing the said works or using the materials and plant for the said works. In case of termination of the contract, the architect shall thereafter ascertain and certify in writing under his hand what shall be due or payable to or by the owners, for the value of the said plant and materials so taken possession of the owners and the expense or loss which the owners shall have been put to in procuring the said works to be completed and the amount, if any, owing to the contractors and the amount which shall be so certified shall thereupon be paid by the owners to the contractors or by the contractors to the owners, as the case may be, and the certificate of the architect shall be final and conclusive between the parties. 12.  In case any dispute or difference should arise between the parties, whether in respect of quality of material used by the contractors, or work done or in respect of delay in completion of work or any other matter arising out of or in connection with agreement or the carrying out of works, shall be referred to and settled by the architect, who shall state his decision in writing. If any party is dissatisfied with the decision of the architect, either party (the owners or the contractors) may give a written notice to the other party through the architect that the matters in dispute be referred to the arbitration and final decision of an arbitrator to be agreed upon and appointed by both the parties or in case of disagreement as to the appointment of a single arbitrator to the appointment of two arbitrators, one to be appointed by each party which arbitrators shall before taking upon themselves the burden of reference appoint an umpire. The submission shall be deemed to be a submission to arbitration within the meaning of the Arbitration and Conciliation Act, 1996 or any statutory modification thereof. The award of the arbitrator or arbitrators, as the case may be, shall be final and binding on the parties. The fees of the arbitrator appointed by a party shall be paid by the party so appointing and the fees of the umpire and other arbitration expenses shall be borne half and half by the parties. The owners and the contractors hereby also agree that arbitration under this clause shall be, a condition precedent to any right of action under the contract. 13.  This agreement shall be executed in duplicate. The original shall be retained by the owners and the duplicate by the contractors. IN WITNESS WHEREOF the parties have signed these presents and a duplicate hereof, the day and year first hereinabove written. Signed and delivered by A Co Ltd., the within named owners by its Managing Director Mr................ Signed and delivered by Z Co. Ltd., the within named contractors by its Managing Director Mr................... WITNESSES; 1. 2.