KAZAKSTAN
23. Agreement for avoidance of
double taxation and prevention of fiscal evasion with Kazakstan
Whereas the
annexed Convention between the Government of the Republic of Kazakstan and the
Government of the Republic of India for the avoidance of double taxation and
the prevention of fiscal evasion with respect to taxes on income and on capital
will enter into force, on the second day of the October, 1997, thirty days
after the receipt of the later of 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 30 of the
said Convention;
Now,
therefore, in exercise of the powers conferred under 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
Notification: No. GSR 633(E), dated 31-10-1997.
ANNEXURE
ConVention between the Government of the
Republic of India and the Government of the Republic of Kazakstan 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 Republic of Kazakstan
desiring to conclude a Convention for the avoidance of double taxation and for
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 - This Convention
shall apply to taxes on income and on capital imposed on behalf of a
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 the
(i) the tax on income of legal persons and
individuals;
(ii) the tax on the property of legal persons and
individuals;
(hereafter referred to as
“Kazakstan tax”);
(b) in the
(i) the income-tax, including any surcharge
thereon; and
(ii) the tax on capital (the wealth-tax);
(hereafter referred to as “Indian
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
any 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 terms :
(i) “Kazakstan” means the Republic of Kazakstan,
and when used in a geographical sense, the term “Kazakstan” includes the
territorial waters, and also the exclusive economic zone and continental shelf
in which Kazakstan, for certain purposes, may exercise sovereign rights and
jurisdiction in accordance with international law and in which the laws
relating to Kazakstan tax are applicable;
(ii) “India” means the territory of India and
includes the territorial sea and airspace above it, as well as any other
meritime zone in which India has sovereign right, 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 “person” includes an individual, a company, a body of
persons or any other entity which is treated as a taxable unit under the
taxation laws in force in the respective Contracting States;
(c) the term “company” means any body corporate or any entity which is
treated as a body corporate for tax purposes;
(d) the terms “a
(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 a ship or
aircraft operated by an enterprise which is a resident of a
(g) the term “competent authority” means :
(i) in Kazakstan : the Ministry of Finance or its
authorised representative;
(ii) in
(h) the term “national” means :
(i) any individual possessing the nationality of a
(ii) any legal person, partnership or any other
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 Kazakstan, the calendar year;
(j) the term “tax” means Indian tax or Kazak 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. As regards, the application of the Convention
at any time by a Contracting State any term not defined therein shall, unless
the context otherwise requires, have the meaning which it has at that time
under the law of that State concerning the taxes to which the Convention
applies.
ARTICLE 4 : Resident - 1. For the purposes of
this Convention, their 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, place of incorporation, or any other
criterion of 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 or capital situated therein.
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 or 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;
(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. The term “permanent establishment” also
includes :
(a) a building site or construction or installation or assembly
project, or supervisory activities connected therewith, only if such site,
project or activity lasts for more than 12 months, and
(b) an installation or structure used for the exploration of natural
resources, or supervisory activities connected therewith, or a drilling rig or
ship used for the exploration of natural resources, only if such use or
activity lasts for more than 12 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 sock 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.
5. Notwithstanding the provisions of paragraphs
1 and 2, where a person - other than an agent of an independent status to whom
paragraph 7 applies - is acting on behalf of an enterprise of the other
Contracting State 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 fixed place
of business a permanent establishment under the provisions of that paragraph.
6. 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 7 applies.
7. An enterprise shall not be deemed to have a
permanent establishment in a
8. The fact that a company which is a resident
of a Contracting State control 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.
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 or has carried 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, in accordance with the
provisions of and subject to the limitations of the tax laws of that State.
The permanent
establishment shall not be allowed a deduction for amounts paid to its head
office or any of the other offices of the resident by way of royalties, fees or
other similar payment in return for the use of patents or other rights, or by
way of commission, for specific services performed or for management, or by way
of interest on moneys lent to the permanent establishment.
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. Where profits include items of income or
capital gains 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.
6. For the purposes of 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.
ARTICLE 8 : Shipping and Air Transport - 1.
Profits derived by an enterprise which is a resident 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 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. The provisions of this paragraph will, however, not apply to
interest on fixed deposits with a bank.
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 - 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 and 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.
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 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 undistributed profits, even if the dividends paid or the undistributed
profits consist wholly or partly of profits or income arising in such other
State.
6. Profits of a company of a Contracting State
carrying on business in the other Contracting State through a permanent
establishment situated therein may, after having been taxed under Article 7, be
taxed on the remaining amount in the Contracting State in which the permanent
establishment is situated at a rate that does not exceed the rate set forth in
paragraph 2 of this Article.
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
(i) the Government, a political sub-division or a
local authority of the other
(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 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 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 10 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 the use of, or the
right to use, any copyright of literary, artistic or scientific work including
software, cinematograph films, any patent, trade mark, design or model, plan,
secret formula or process, or for information concerning industrial, commercial
or scientific experience, and payments for the use of, or the right to use
industrial, commercial or scientific equipment.
(b) The
term “fees for technical services” 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
Convention.
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 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 Contracting
State 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 that Contracting State.
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 the preceding paragraphs, 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 State; or
(b) if his stay in the other State is for a period or periods
aggregating 183 days or more in any 12-months 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, surgeons, 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
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-months 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
a ship or aircraft operated in international traffic, may be taxed in the
ARTICLE 16 : Directors’ Fees - Directors’ fees
and other similar payments derived by a resident of a
ARTICLE 17 : Artistes and Sportpersons - 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 a sportperson, 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 of a sportperson in his capacity as such accrues
not to the entertainer or sportperson 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
sportperson are exercised.
3. The provisions of paragraphs 1 and 2, shall
not apply to income from activities performed in a
ARTICLE 18 : Persons and other payments - 1.
Subject to the provisions of paragraph 2 of Article 19, pensions and other
similar remuneration paid to a resident of a Contracting State in consideration
of past employment and any annuity paid to such a resident shall be taxable
only in that State.
2. The term “annuity” means a stated sum payable
to an individual periodically at stated times during its life or during a
specified or ascertainable period of time under an obligation 10 make the
payments in return for adequate and full consideration in money or money’s
worth.
ARTICLE 19 : Government Service - 1. (a)
Salaries, wages and other similar 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 salaries, wages and other similar 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
3. The provisions of Articles 15, 16 and 18
shall apply to salaries, wages and other similar remuneration and to pensions,
in respect of services rendered in connection with a business carried on by a
ARTICLE 20 : Students and Apprentices - 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, besides grants, loans and scholarships, 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 seven 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 the
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 “approved
institution” means an institution which has been approved in this regard by the
competent authority 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 : Capital - 1. Capital represented by
immovable property referred to in Article 6, owned by a resident of a
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 or aircraft, shall be taxable only in that
ARTICLE 24 : 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 Convention.
2. In the case of Kazakstan, double taxation
shall be avoided as follows :
(a) Where a resident of Kazakstan derives income or owns capital which,
in accordance with the provisions of this Convention, may be taxed in
(i) as a deduction from the tax on the income of
that resident, an amount equal to the income-tax paid in
(ii) as a deduction from the tax on capital of that
resident, an amount equal to the tax on capital paid in
The amount of
the tax to be deducted pursuant to the above provision shall not exceed the tax
which would have been charged on the same income in Kazakstan under the rates
applicable thereon.
3. In the case of
(a) Where a resident of
(i) as a deduction from the tax on the income of
that resident, an amount equal to the income-tax paid in Kazakstan;
(ii) as a deduction from the tax on capital of that
resident, an amount equal to the tax on capital paid in Kazakstan.
The amount of
the tax to be deducted pursuant to the above provision shall not exceed the tax
which would have been charged on the same income in
4. Income or capital which, in accordance with
the provisions of this Convention, is not to be subjected to tax in a
5. The tax paid in a Contracting State shall be
deemed to include the tax which would have been paid but for any exemption or
reduction of tax granted under incentive provisions contained in the law of
that Contracting State designed to promote economic development to the extent
that such exemption or reduction is granted for profits from industrial or
manufacturing activities or from agriculture, fishing or tourism (including
restaurants and hotels), provided that the activities have been carried out
within that Contracting State.
ARTICLE 25 : 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 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
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, 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 Convention.
2. The competent authority shall endeavour, if
the objection appears to it to be justified and 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 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 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 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
(a) to carry out administrative measures at
variance with the laws and administrative practice of that or of the other
(b) to supply information or 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 (ordre public).
ARTICLE 28 : Assistance
in Collection - 1. The Contracting States undertaken to lend assistance to
each other in the collection of taxes to which this Convention 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 29 : Member of
Diplomatic Missions and Consular Posts - Nothing in this Convention shall
affect the fiscal privileges of members of diplomatic missions or consular
posts under the general rules of international law or under the provisions of
special agreements.
ARTICLE 30 : 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 Convention. This Convention
shall enter into force thirty days after the receipt of the later of the
notifications.
2. The provisions of this Convention shall have effect :
(a) in India in respect of income derived or
capital held in any fiscal year beginning on or after the first day of April
next following the calendar year in which the Convention enters into force ;
and
(b) in Kazakstan in respect of income derived or capital held in any
fiscal year beginning on or after the first day of January next following the
calendar year in which the Convention enters into force.
ARTICLE 31 : Termination - This Convention shall
remain in force indefinitely 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 is given and in respect of capital which is held at the expiry of any
previous year beginning on or after the first day of April next following the
calendar year in which the notice of termination is given; and
(b) in Kazakstan, in respect of income arising in any fiscal year on or
after the first day of January next following the calendar year in which the
notice is given and in respect of capital which is held at the expiry of 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 this Convention.
DONE, in duplicate at
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Protocol
At the signing
of the Convention between the Government of the
With
reference to Article 7 :
In respect of
paragraphs 1 and 2 of Article 7, where an enterprise of one of the Contracting
States sells goods or merchandise or carries on business in the other
Contracting State through a permanent establishment situated therein, the
profits of that permanent establishment shall not be determined on the basis of
the total amount received by the enterprise, but shall be determined only on
the basis of the remuneration which is attributable to the actual activity of
the permanent establishment for such sales or business. Especially, in the case
of contracts for the survey, supply, installation or construction of
industrial, commercial or scientific equipment or premises, or of public works,
when the enterprise has a permanent establishment, the profits of such
permanent establishment shall not be determined on the basis of the total
amount of the contract, but shall be determined only on the basis of that part
of the contract which is effectively carried out by the permanent establishment
in the Contracting State where the permanent establishment is situated.
With
reference to Articles 10, 11 and 12:
In respect of
Articles 10, 11 and 12, if under any Convention, Agreement or Protocol between
the Governments of Republic of Kazakstan and the Republic of India with a third
State, either Kazakstan or India limit their taxation on dividends (single
rate), interest, royalties or fees for technical services to a rate lower or a
scope more restricted than the rate of scope provided for in this Convention on
the said items of income, the same rate or scope as provided for in that
Convention. Agreement or Protocol on the said items of income shall also apply
under this Convention.
In witness
whereof, the undersigned, being duly authorized thereto, have signed this
Protocol.
Done in
duplicate at
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