25A. Agreement
for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Foreign
Countries - With Kyrgyz Republic
Whereas the annexed Agreement between the
Government of the Republic of India and the Government of the Kyrgyz Republic
for the avoidance of double taxation and for the prevention of fiscal evasion
with respect to taxes on income has come into force on the 10th January, 2001,
thirty days after the date of receipt of the latter of the notifications by the
Contracting States to each other of the completion of the procedure required by
the respective laws for the entry into force of this Agreement in accordance
with Article 29 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
Notification
: No. GSR 75(E), dated
7-2-2001.
Annexure
Agreement between the
Government of the republic of India and the Government of the Kyrgyz Republic
for the avoidance of Double Taxation and for the prevention of fiscal evasion
with respect to taxes on income
The Government of the
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. This
Agreement shall apply to taxes on income imposed on behalf of a
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 and taxes on the total amounts of wages or
salaries paid by enterprises.
3. The existing taxes to which the Agreement shall apply are in
particular :
(a) in
the
income-tax, including any surcharge thereon;
(hereinafter
referred to as “Indian tax”).
(b) in
(i) tax
on profits and income of legal persons;
(ii) income-tax
on physical persons;
(hereinafter
referred to as “Kyrgyz tax”);
4. The Agreement shall apply also to any identical or substantially similar
taxes which are imposed after the date of signature of the Agreement in
addition to, or in place of, the existing taxes referred to in paragraph 3. The
competent authorities of the Contracting States shall notify each other of any
significant changes which have been made in their respective taxation laws.
Article 3 : General Definitions - 1. For the purposes of this
Agreement, 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 “Kyrgyzstan” means the Kyrgyz
Republic when used in the geographical terms the term “Kyrgyzstan” means the
territory on which the Kyrgyz Republic exercises sovereign rights and
jurisdiction in accordance with Kyrgyz law and in accordance with 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 corporate entity
which is treated as a body corporate for tax purposes and includes in
particular joint stock companies, limited companies or any other enterprise
treated as company under Kyrgyz law;
(e) 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;
(f) the term “international traffic” means any
transport by an aircraft operated by an enterprise which is a resident of a
(g) the term “competent authority” means :
(i) in
(ii) in
(h) the term “national” means :
(i) any
individual possessing the nationality of a
(ii) any
legal person, partnership or association deriving its status as such from the
laws in force in a
(i) the term “fiscal year” means :
(i) in
the case of
(ii) in
the case of
(j) the term “tax” means Indian tax or Kyrgyz 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 or fine imposed relating to those taxes;
(k) the terms “a
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 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. 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
(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 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 sales outlet;
(h) a warehouse in relation to a person providing
storage facilities for others; and
(i) a farm, plantation or other place where
agricultural, forestry, plantation or related activities are carried on.
3. A building site, a construction, assembly or installation project, or
supervisory activities connected therewith, only if such site, or project or
activity lasts for more than six months.
4. An enterprise shall be deemed to have a permanent establishment in a
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 for or to be used in the prospecting for, or extraction
or exploitation of mineral oils in that State.
5. 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;
(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 carrying on, for the enterprise, any other activity
of a preparatory or auxiliary character; or
(f) 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.
6. Notwithstanding the provisions of paragraphs 1 and 2, where a person
other than an agent of an independent status to whom paragraph 8 applies - 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 Contracting State in respect of any
activities which that person undertakes for the enterprise, if such a
person :
(a) has and habitually exercises in that State an
authority to conclude contracts in the name of the enterprise, unless the
activities of such person are limited to those mentioned in paragraph 5 which,
if exercised through a fixed place of business, would not make this fixed place
of business a permanent establishment under the provisions of that paragraphs;
or
(b) has no such authority, but habitually
maintains in the first-mentioned State a stock of goods or merchandise from
which he regularly delivers goods or merchandise on behalf of the enterprise;
or
(c) habitually secures orders in the
first-mentioned State, wholly or almost wholly for the enterprise itself or for
the enterprise and other enterprises controlling, controlled by, or subject to
the same control, as that enterprise.
7. Notwithstanding the preceding provisions of this Article, an insurance
enterprise of a Contracting State shall, except in regard to re-insurance, be
deemed to have a permanent establishment in the other Contracting State if it
collects premiums in the territory of that other State or it insures risks
situated therein through a person other than an agent of an independent status
to whom paragraph 8 applies.
8. An enterprise shall not be deemed to have a permanent establishment in a
9. 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
2. The term “immovable property” shall have the meaning which it has under
the law of the
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.
5. Where the ownership of shares or other corporate rights in a company
entitles the owner of such shares or corporate rights to the enjoyment of
immovable property held by the company, the income from direct use, letting, or
use in any other form of such right to enjoyment may be taxed in the
Contracting State, in which the immovable property is situated.
Article 7 : Business profits - 1. The profits of an
enterprise of a
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, in accordance with the
provisions of and subject to the limitations of the tax 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 or merchandise for
the enterprise.
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.
Article 8 : International traffic - 1. Profits derived by an
enterprise of a
2. Profits derived by a transportation enterprise which is a resident of a
Contracting State from the use, maintenance, or rental of containers (including
trailers and other equipment for the transport of containers) used for the
transport of goods or merchandise in international traffic shall be taxable
only in that Contracting State unless the containers are used solely within the
other Contracting State.
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 provisions of paragraph 1 shall also apply to profits from the
participation in a pool, a joint business or an international operating agency.
Article 9 : Associated Enterprises - 1. Where :
(a) an enterprise of a
(b) the same persons participate directly or
indirectly in the management, control or capital of an enterprise of a
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 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. In determining such adjustment, due regard
shall be had to the other provisions of this 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 a
resident of a
2. However, such dividends may also be taxed in the
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 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 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 in so far 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
2. However, such interest may also be taxed in the
3. Notwithstanding the provisions of paragraph 2, 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 of the other Contracting State;
or
(ii) the Central Bank of the other
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 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, 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 14, as the case may be, shall apply.
6. Interest shall be deemed to arise in a
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
Article 12 : Royalties and fees for technical services - 1. Royalties
or fees for technical services arising in a
2. However, such royalties or 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 15 per cent of the
gross amount of the royalties or fees for technical services.
3. (a) The term “royalties” as used in this Article means payments
of any kind received as a consideration for :
(i) the use of, or the right to use, any copyright
of literary, artistic or scientific work including software, cinematograph and
video films or records or tapes for television or radio;
(ii) any patent, design or model, plan, secret
formula or process, trade mark or for information (know-how) concerning
industrial, commercial, or scientific experience; or
(iii) the use of, or right to use, any industrial,
commercial or scientific equipment.
(b) the term “fees for technical services” as used in this Article,
means payment of any kind in consideration for the rendering of any managerial,
technical or consultancy services including the provision of services by
technical or other personnel but does not include payments for services
mentioned in Articles 14 and 15 of this Agreement.
4. 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, 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 or fees for technical services 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. Royalties or fees for technical services shall be deemed to arise in a
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 or fees for technical services, 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
Article 13 : Capital gains - 1. Gains derived by a resident of a
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
be taxed in that other State.
3. Gains derived by a resident of
4. Gains from the alienation of shares of the capital stock of a company
the property of which consists directly or indirectly principally of immovable
property situated in a
5. Gains from the alienation of shares other than those mentioned in
paragraph 4 of a company which is a resident of a
6. Gains from the alienation of any property other than that referred to in
paragraphs 1, 2, 3, 4 and 5 shall be taxable only in the
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
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 State is for a period
or periods aggregating 183 days or more in any 12 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, 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 an individual who is a resident of
2. Notwithstanding the provisions of paragraph 1, remuneration derived by a
resident of a
(a) the recipient is present in the other State
for a period or periods not exceeding in the aggregate 183 days in any 12 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 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 an aircraft operated in
international traffic by an enterprise which is a resident of a Contracting
State may be taxed in that State.
Article 16 : Director’s fees - Directors’ fees and other similar payments
derived by a resident of a
Article 17 : Artistes and sportspersons - 1. Notwithstanding the
provisions of Articles 14 and 15, the 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 sportsperson 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 sportsperson
are exercised.
3. The provisions of paragraphs 1 and 2, shall not apply to income from
activities performed in a Contracting State by entertainers or sportspersons if
the visit to that State is substantially supported by public funds of one or
both of the Contracting State or the activity is exercised within the framework
of cultural or sports co-operation agreement between the Contracting States. In
such a case, the income is taxable only in the
Article 18 : Pensions and other payments - 1. Subject to the
provisions of paragraph 2 of Article 19, pensions and other similar remuneration
and annuities paid to a resident of a Contracting State shall be taxable only
in that State.
2. 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 19 : 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 other State and the
individual is a resident of that other 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
3. The provisions of Articles 15, 16 and 18 shall apply to, remuneration
and pensions, in respect of services rendered in connection with a business
carried on by a
Article 20 : Students - 1. A student or business apprentice who is
or was a resident of a Contracting State immediately before visiting the other
Contracting State and who is present in that other Contracting 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 for an amount not exceeding the amount which is exempt from tax under the
laws of that other Contracting State for any fiscal 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.
2. The benefit of this Article shall extend only for such period of time as
may be reasonably 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
Article 21 : Professors, teachers and research scholars - 1. A
professor or teacher who is or was a resident of a Contracting State
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 in 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
4. For the purposes of paragraph 1:
(a) the teaching or research assignment should be
approved by the Governments of the Contracting States;
(b) “approved institution” means an institution
which has been approved in this regard by the Government of the concerned
State.
Article 22 : Other Income - 1. Items of income of a resident of a
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 paragraph 1, if a resident of a
Contracting State derives income from sources within the other Contracting
State in the form of lotteries, crossword puzzles, races including horse races,
card games and other games or any sort of gambling or betting of any form or
nature whatsoever, such income may be taxed in the other Contracting State.
Article 23 : Method for elimination of double taxation - 1. Where
a resident of a
2. In the case of India, the tax payable in the Contracting State mentioned
in paragraph 1 of this Article shall be deemed to include the tax which would
have been payable but for the tax incentives granted under the laws of the
Contracting State and which are designed to promote economic development.
3. Where in accordance with any provision of the Agreement income derived
by a resident of a
Article 24 : Non-discrimination - 1. Nationals of a
2. The taxation on a permanent establishment which an enterprise of a
3. 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.
4. 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.
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 the provisions of this
Agreement, 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 he comes under paragraph 1 of Article
24, to 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 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 a satisfactory
solution, to resolve the case by mutual agreement with the competent authority
of the other
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 shall also consult each
other 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, including through a joint commission consisting of
themselves or their representatives, for the purpose of reaching an agreement
in the sense of the preceding paragraphs.
Article 26 : Exchange of information - 1. The competent
authorities of the Contracting States shall exchange such information
(including certified copies of documents) as is necessary for carrying out the
provisions of this Agreement or of the domestic laws of the Contracting State
concerning taxes covered by the Agreement, insofar as the taxation thereunder
is not contrary to the Agreement. The exchange of information is not restricted
by Article 1. Any information received by the competent authority of 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
assessment or collection of, the enforcement or prosecution in respect of, or
the determination of appeals in relation to, the taxes to which the Agreement
applies and shall be used 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 the competent authority of a
(a) to carry out administrative measures at
variance with the laws or administrative practice of that or of the other
(b) to supply information (including certified
copies of documents) which is not obtainable under the laws or in the normal
course of the administration of that or of the other
(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.
Article 27 : Collection assistance - 1. The Contracting States
undertake to lend assistance to each other in the collection of taxes to which
this Agreement relates together with interest, costs, and civil penalties
relating to such taxes, referred to in this article as a “revenue claim”.
2. Request for assistance by the competent authority of a
3. Amounts collected by the competent authority of a
4. Nothing in this article shall be construed as imposing on either
Article 28 : Diplomatic and consular officials - 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 29 : Entry into force - 1. The Contracting States
shall notify each other in writing through diplomatic channels, the completion
of the procedure required by the respective laws for the entry into force of
this Agreement. It shall enter into force thirty days after the date or receipt
of the latter of the notifications.
2. The provisions of this Agreement shall 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; and
(b) in
(i) in
respect of taxes withheld at source, in relation to taxable amount paid on or
after the first day of January following the calendar year in which the
Agreement enters into force;
(ii) in
respect of other Kyrgyz taxes in relation to profits and income arising in the
calendar year following the calendar year in which the Agreement enters into
force and in subsequent calendar years.
Article 30 : Termination - This Agreement shall remain in force until
terminated by one of the Contracting States. Either
(a) in India, in respect of income arising in any
previous year on or after the first day of April next following the calendar
year in which the notice of termination is given; and
(b) in
(i) in
respect of taxes withheld at source, in relation to taxable amount paid on or
after the first day of January following the calendar year in which the notice
of termination is given;
(ii) in
respect of other Kyrgyz taxes in relation to profits and income arising in the
calendar year following the calendar year in which the notice of termination is
given and in subsequent calendar years.
In witness whereof, the undersigned, being duly authorized thereto, have
signed this Agreement.
Done in duplicate at
Protocol
At the signing of the Agreement between the Government of the
1. With reference to Article 6 it is understood that income from immovable
property may be taxed in both the Contracting States.
2. With reference to Article 11 paragraph 3(i) it is understood that
Government in the case of
3. With reference to Article 11 paragraph 6 and Article 12 paragraph 5 it
is understood that in the case of
In witness whereof, the undersigned, being duly authorized thereto, have
signed this Protocol.
Done in duplicate at