41. Agreement for avoidance of
double taxation and prevention of fiscal evasion with
Whereas the
annexed Agreement between the Government of the Republic of India and the
Government of the Republic of Singapore for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on income has
entered into force on 27th May, 1994 on the notification by both the
Contracting States to each other of the completion of the procedures required
by their respective laws, as required by 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 610(E),
dated 8-8-1994 as amended by Notification SO 1022(E), dated 18-7-2005.
TEXT OF AMENDED AGREEMENT
The Government
of the Republic of India and the Government of the Republic of Singapore,
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
income-tax
including any surcharge thereon
(hereinafter
referred to as “Indian tax”) ;
(b) in
the
income-tax (hereinafter referred to as “
2. The Agreement shall also apply to any
identical or substantially similar taxes which are imposed by either
ARTICLE 3 : General definitions - 1. In this Agreement, unless 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 sovereign rights, other rights and jurisdictions, according to
the Indian law and in accordance with international law ;
(b) the term “
(c) the terms “a
(d) 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 ;
(e) 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 Singapore,
the Minister for Finance or his authorised
representative ;
(f) the terms “enterprise of a
(g) the term “fiscal year” means :
(i) in the case of
(ii) in the case of
(h) the term “international traffic” means any
transport by a ship or aircraft operated by an enterprise of a
(i) the term “national”
means any individual, possessing the nationality of a
(j) 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 ;
(k) the term “tax” means Indian tax or Singapore 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.
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
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.
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 the 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 warehouse in relation to a person
providing storage facilities for others;
(h) a farm, plantation or other place where agriculture,
forestry, plantation or related activities are carried on ;
(i) premises used as a
sales outlet or for soliciting and receiving orders ;
(j) an installation or structure used for the exploration or
exploitation of natural resources but only if so used for a period of more than
120 days in any fiscal year.
3. A building site or construction, installation
or assembly project constitutes a permanent establishment only if it continues
for a period of more than 183 days in any fiscal year.
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 carries on supervisory activities in that
Contracting State for a period of more than 183 days in any fiscal year in connection
with a building site or construction, installation or assembly project which is
being undertaken in that Contracting State.
5. Notwithstanding the provisions of paragraphs
3 and 4, and 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 that Contracting State for a period of
more than 183 days in any fiscal year in connection with the exploration,
exploitation or extraction of mineral oils in that Contracting State.
6. An enterprise shall be deemed to have a
permanent establishment in a
(a) activities of that nature continue within that Contracting State
for a period or periods aggregating more than 90 days in any fiscal year; or
(b) activities are performed for a related
enterprise (within the meaning of Article 9 of this Agreement) for a period or
periods aggregating more than 30 days in any fiscal year.
7. 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 occasional 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 occasional 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 information,
for scientific research, or for similar activities which have a preparatory or
auxiliary character, for the enterprise.
However, the
provisions of sub-paragraphs (a) to (e) shall not be applicable
where the enterprise maintains any other fixed place of business in the other
8. Notwithstanding the provisions of paragraphs
1 and 2, where a person - other than an agent of an independent status to whom paragraph 9 applies - is acting in a
(a) he has and habitually exercises in that State
an authority to conclude contracts on behalf of the enterprise, unless his
activities are limited to the purchase of goods or merchandise for the
enterprise ;
(b) he 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) he 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 common control, as that enterprise.
9. An enterprise of a
10. 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
2. The term “immovable property” shall have the
meaning which it has under the law of the
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
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. In any case where the correct amount of
profits attributable to a permanent establishment is incapable of determination
or the determination thereof presents exceptional difficulties, the profits
attributable to the permanent establishment may be estimated on a reasonable
basis.
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. Insofar as it has been customary in the
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.
8. For the purpose of paragraph 1, the term
“directly or indirectly attributable to the permanent establishment” includes
profits arising from transactions in which the permanent establishment has been
involved and such profits shall be regarded as attributable to the permanent
establishment to the extent appropriate to the part played by the permanent
establishment in those transactions, even if those transactions are made or
placed directly with the overseas head office of the enterprise rather than
with the permanent establishment.
ARTICLE 8 : Shipping and air transport - 1. Profits derived by an enterprise
of a
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 engaged in the operation of ships or aircraft.
3. 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. For the purposes of this Article, profits
from the operation of ships or aircraft in international traffic shall mean
profits derived from the transportation by sea or air of passengers, mail,
livestock or goods carried on by the owners or lessees or charterers
of the ships or aircraft, including profits from :
(a) the sale of tickets for such
transportation on behalf of other enterprises;
(b) the incidental lease of ships or aircraft
used in such transportation;
(c) the use, maintenance or rental or
containers (including trailers and related equipment for the transport of
containers) in connection with such transportation; and
(d) any other activity directly connected with
such transportation.
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 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
(a) 10 per cent of the gross amount of the dividends if the beneficial
owner is a company which owns at least 25 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. Notwithstanding the provisions of paragraph 2
of this Article, as long as Singapore does not impose a tax on dividends in
addition to the tax chargeable on the profits or income of a company, dividends
paid by a company which is a resident of Singapore to a resident of India shall
be exempt from any tax in Singapore which may be chargeable on dividends in
addition to the tax chargeable on the profits or income of the company.
4. 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.
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 14, 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
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.
7. (a) Dividends
shall be deemed to arise in
(b) Dividends
shall be deemed to arise in
(i) if they are paid by a
company which is a resident of
(ii) if they are paid by a
company which is a resident of
Article 11 : Interest - 1. Interest arising in a
2. However, such interest may also be taxed in
the
(a) 10 per cent of the gross amount of the interest if such interest is
paid on a loan granted by a bank carrying on a bona fide banking
business or by a similar financial institution (including an insurance company)
;
(b) 15 per cent of the gross amount of the interest in all other cases.
3. 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.
4. 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.
5. Interest 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 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 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 and fees for technical services arising in a
1[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
Contracting 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.]
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
:
(a) any copyright of a literary, artistic or
scientific work, including cinematograph film or films or tapes used for radio
or television broadcasting, any patent, trade mark, design or model, plan,
secret formula or process, or for information concerning industrial, commercial
or scientific experience, including gains derived from the alienation of any
such right, property or information ;
(b) any industrial, commercial
or scientific equipment, other than payments derived by an enterprise from
activities described in paragraph 4(b) or 4(c) of Article 8.
4. The term “fees for technical services” as used in this Article means
payments of any kind to any person in consideration for services of a
managerial, technical or consultancy nature (including the provision of such
services through technical or other personnel) if such services :
(a) are ancillary and
subsidiary to the application or enjoyment of the right, property or
information for which a payment described in paragraph 3 is received ; or
(b) make available
technical knowledge, experience, skill, know-how or processes, which enables
the person acquiring the services to apply the technology contained therein ;
or
(c) consist of the
development and transfer of a technical plan or technical design, but excludes
any service that does not enable the person acquiring the service to apply the
technology contained therein.
For the purposes of (b) and (c) above, the person
acquiring the service shall be deemed to include an agent, nominee, or
transferee of such person.
5. Notwithstanding paragraph 4, “fees for technical services” does not
include payments :
(a) for services that are
ancillary and subsidiary, as well as inextricably and essentially linked, to
the sale of property other than a sale described in paragraph 3(a) ;
(b) for 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 ;
(c) for teaching in or by
educational institutions ;
(d) for services for the
personal use of the individual or individuals making the payment;
(e) to an employee of the person making the payments
or to any individual or firm of individuals (other than a company) for
professional services as defined in Article 14 ;
(f) for services rendered
in connection with an installation or structure used for the exploration or
exploitation of natural resources referred to in paragraph 2(j) of
Article 5 ;
(g) for services referred
to in paragraphs 4 and 5 of Article 5.
6. 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, property
or contract 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 case, the provisions of Article 7 or Article 14, as the case may
be, shall apply.
7. Royalties and fees for technical services shall be deemed to arise in a
8. 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
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 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
1[4. Gains
derived by a resident of a Contracting State from the alienation of any
property other than those mentioned in paragraphs 1, 2 and 3 of this Article
shall be taxable only in that State.]
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 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 Contracting State is
for a period or periods amounting to or exceeding in the aggregate 90 days in
the relevant fiscal year, 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, 18, 19, 20 and 21, 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 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 or a fixed base which the employer has
in the other State.
3. In the case of a recipient who satisfies all the conditions under
sub-paragraphs (a), (b) and (c) of paragraph 2, if his
remuneration is deductible as an expense against fees for technical services
(dealt with under Article 12) derived by his employer and the employer has no
permanent establishment in the other Contracting State, the remuneration may,
notwithstanding the provisions of paragraph 2, be taxed in that State. In such
case, the tax so charged shall not exceed 15 per cent of the gross amount of
the remuneration.
4. 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
ARTICLE 16 : Directors’ fees - Directors’ fees and similar payments
derived by a resident of a
ARTICLE 17 : Artistes and sportspersons -1. Notwithstanding the provisions of Articles 14 and 15, income derived by
a resident of a Contracting State as an artiste 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 or in connection with personal activities
exercised by an artiste or a sportsperson accrues not to the artiste 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 artistes or sportspersons are exercised.
3. Notwithstanding the provisions of paragraph 1, income derived by an
artiste 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 the first-mentioned State, if the activities in the other State
are supported wholly or substantially from the public funds of the
first-mentioned State, including any of its political sub-divisions, local
authorities or statutory bodies.
4. Notwithstanding the provisions of paragraph 2 and Articles 7, 14 and
15, where income in respect of or in connection with personal activities exercised
by an artiste or a sportsperson in a Contracting State accrues not to the
artiste 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, local authorities or statutory bodies.
ARTICLE 18 : Remuneration and pensions in respect of
Government service - 1. (a) Remuneration, other than a
pension, paid by a Contracting State or a political sub-division, a local
authority or a statutory body thereof to an individual in respect of services
rendered to that State or sub-division or authority or body 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.
2. (a) Any pension paid by, or out of funds created by a
Contracting State or a political sub-division, a local authority or a statutory
body thereof to an individual in respect of services rendered to that State or
sub-division or authority or body 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 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 or a statutory body 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
2. 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.
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 trainees - 1. An individual who is or was a resident of a Contracting State
immediately before making a visit to the other Contracting State and is
temporarily present in the other State solely :—
(a) as a student at a recognised university, college, school or other similar recognised educational institution in that other State ;
(b) as a business or
technical apprentice ; or
(c) as a recipient of a grant, allowance or award
for the primary purpose of study, research or training from the Government of
either State or from a scientific, educational, religious or charitable organisation or under a technical assistance programme entered into by the Government of either State ;
shall be exempt from tax in that other State on :
(i) all remittances from abroad for the purposes of his maintenance,
education, study, research or training ;
(ii) the amount of such
grant, allowance or award; and
(iii) any remuneration not exceeding United States
Dollars five hundred per month or its equivalent in local currency in respect
of services in that other State provided the services are performed in
connection with his study, research or training or are necessary for the
purposes of his maintenance.
2. The benefits of this 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
ARTICLE 21 : Teachers and researchers - 1. An individual who is or was a resident of a Contracting State
immediately before making a visit to the other Contracting State, and who, at
the invitation of any university, college, school or other similar educational
institution, visits that other State for a period not exceeding two years
solely for the purpose of teaching or research or both at such educational
institution shall be exempt from tax in that other State on any remuneration
for such teaching or research.
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.
ARTICLE 22 : Income of Government - 1. The Government of a
2. The types of income to which paragraph 1 applies are:—
(a) dividends under
Article 10 ;
(b) interest under
Article 11 ; and
(c) any other income or
gains derived from transactions not pursuant to the conduct of commercial
activities.
3. For the purposes of paragraph 1, the term “Government”
:—
(a) in the case
of
(i) the Monetary Authority
of
(ii) the Government of Singapore Investment Corporation Pvt. Ltd.
to the extent it is not engaged in the conduct of commercial activities ;
(iii) a statutory body not engaged in the conduct of commercial
activities ;
(iv) any other institution or body as may be agreed from time to
time between the competent authorities of the Contracting States ;
(b)
in the case of
(i) the Governments of
the States and the
(ii) the Reserve Bank of
(iii) a statutory body not engaged in the conduct of commercial
activities;
(iv) any other institution or body as may be agreed from time to
time between the competent authorities of the Contracting States.
ARTICLE 23 : Income not expressly mentioned - Items of income which are not expressly mentioned in the foregoing
Articles of this Agreement may be taxed in accordance with the taxation laws of
the respective Contracting States.
ARTICLE 24 : Limitation of relief - 1. Where this Agreement provides (with or without other conditions) that
income from sources in a Contracting State shall be exempt from tax, or taxed
at a reduced rate in that Contracting State and under the laws in force in the
other Contracting State the said income is subject to tax by reference to the
amount thereof which is remitted to or received in that other Contracting State
and not by reference to the full amount thereof, then the exemption or
reduction of tax to be allowed under this Agreement in the first-mentioned
Contracting State shall apply to so much of the income as is remitted to or
received in that other Contracting State.
2. However, this limitation does not apply to income derived by the
Government of a
ARTICLE 25 : Avoidance 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
express provision to the contrary is made in this Agreement.
2. Where a resident of
3. For the purposes of paragraph 2 of this
Article, “Singapore tax paid” shall be deemed to include any amount of tax
which would have been payable but for the reduction or exemption of Singapore
tax granted under :
(a) the
provisions of the Economic Expansion Incentives (Relief from Income-tax) Act
and the provisions of sections 13(1)(t), 13(1)(u), 13(1)(v),
13(2), 13A, 13B, 13F, 14B, 14E, 43A, 43C, 43D, 43E, 43F, 43G, 43H, 43-I, 43J
and 43K of the Income-tax Act, insofar as they were in force and have not been
modified since the date of signature of this Agreement, or have been modified
in minor respects so as not to affect their general character.
(b) any other provision which may subsequently be enacted granting an
exemption or reduction of tax which is agreed by the competent authorities of
the Contracting States to be of a substantially similar character to any
provision referred to in sub-paragraph (a) of this paragraph, if such
provision has not been modified thereafter or has been modified only in minor
respects so as not to affect its general character.
4. Subject to the provisions of the laws of
Singapore regarding the allowance as a credit against Singapore tax of tax paid
in any country other than Singapore, Indian tax paid, whether directly or by
deduction, in respect of income from sources within India shall be allowed as a
credit against Singapore tax payable in respect of that income. Where such
income is a dividend paid by a company which is a resident of
5. For the purposes of paragraph 4 of this
Article the term “Indian tax paid” shall be deemed to include any amount of tax
which would have been payable in India but for a deduction allowed in computing
the taxable income or an exemption or reduction of tax granted for that year in
question :
(a) Sections 10(4), 10(4B), 10(5B), 10(15)(iv),
10A, 10B, 33AB, 80-I and 80-IA, insofar as these provisions were in force and
have not been modified since the date of signature of this Agreement, or have
been modified only in minor respects so as not to affect their general
character,
(b) any other provision which may subsequently be enacted granting an
exemption or reduction of tax which is agreed by the competent authorities of
the Contracting States to be of a substantially similar character to a
provision referred to in sub-paragraph (a) of this paragraph, if such
provision has not been modified thereafter or has been modified only in minor
respects so as not to affect its general character.
6. Income which, in accordance with the
provisions of this Agreement, is not to be subjected to tax in a
ARTICLE 26 : Non-discrimination - 1. The 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 that
first-mentioned State are or may be subjected in the same circumstances and
under the same conditions.
4. Nothing contained in paragraphs 1, 2 and 3 of
this Article shall be construed as—
(a) obliging a
(b) affecting any provisions of the tax laws
of the respective Contracting States regarding the imposition of tax on
non-resident persons as such;
(c) obliging a Contracting State to grant to nationals of the other
Contracting State those personal allowances, reliefs,
reductions and deductions for tax purposes which it grants to its own citizens
who are not resident in that State or to such other persons as may be specified
in the taxation laws of that State; and
(d) affecting any provisions of the tax laws
of the respective Contracting States regarding any tax concessions granted to
persons fulfilling specified conditions.
5. In this Article, the term “taxation” means
taxes which are the subject of this Agreement.
ARTICLE 27 : 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
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.
1[ARTICLE
28
EXCHANGE OF INFORMATION
1. The competent authorities of the
Contracting States shall exchange such information as is foreseeably
relevant for carrying out the provisions of this Agreement or to the
administration or enforcement of the domestic laws concerning taxes of every
kind and description imposed on behalf of the Contracting States, or of their
political sub-divisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange
of information is not restricted by Articles 1 and 2.
2. Any information received under
paragraph 1 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) concerned with the assessment or collection of the enforcement or
prosecution in respect of, the determination of appeals in relation to the
taxes referred to in paragraph 1, or the oversight of the above. 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.
3. In no case shall the provisions of
paragraphs 1 and 2 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 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 ).
4. If information is requested by a
Contracting State in accordance with this Article, the other Contracting State
shall use its information gathering measures to obtain the requested
information, even though that other State may not need such information for its
own tax purposes. The obligation contained in the preceding sentence is subject
to the limitations of paragraph 3 but in no case shall such limitations be
construed to permit a
5. In no case shall the provisions of
paragraph 3 be construed to permit a Contracting State to decline to supply
information solely because the information is held by a bank, other financial
institution, nominee or person acting in an agency or a fiduciary capacity or
because it relates to ownership interests in a person.]
ARTICLE 29 : 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 30 : Entry into force - 1. Each of the Contracting States
shall notify the other the completion of the procedures requires by its law for
the bringing into force of this Agreement. This Agreement shall enter into
force on the date of the later of these notifications and shall thereupon have effect :
(a) in
(b) in
2. The Agreement between the Government of the
Republic of India and the Government of the Republic of Singapore for the
avoidance of double taxation and the prevention of fiscal evasion with respect
to taxes on income signed in Singapore on 20th April, 1981 shall terminate and
cease to be effective from the date on which this Agreement comes into effect.
ARTICLE 31 : Termination - 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
(b) in
IN WITNESS
WHEREOF the undersigned, being
duly authorised thereto, have signed the present
Agreement.
DONE in duplicate at
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Whereas the annexed Protocol amending the Agreement between the
Government of the Republic of India and the Government of the Republic of
Singapore for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect of Taxes on Income shall enter into force on 1st August,
2005 under Article 7 of the Protocol amending the Agreement for giving effect
to the provisions of the said Protocol;
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 Protocol amending the Agreement between the
Government of the Republic of India and the Government of the Republic of Singapore
for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with
respect to Taxes on Income shall be given effect to in the Union of India with
effect from the 1st day of August, 2005.
Protocol Amending the Agreement between the
Government of the
The
Government of the Republic of India and the Government of the Republic of
Singapore, desiring to conclude a Protocol to amend the Agreement between the
Government of the Republic of India and the Government of the Republic of
Singapore for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income signed in India on 24th January, 1994
(hereinafter referred to as “the Agreement”), Have agreed as follows:
ARTICLE 1 : Paragraphs 4, 5 and 6 of Article 13
(Capital Gains) of the Agreement shall be deleted and replaced by the following:
“4.
Gains derived by a resident of a Contracting State from the alienation of any
property other than those mentioned in paragraphs 1, 2 and 3 of this Article
shall be taxable only in that State.”
1[***]
ARTICLE 3 : 1. A resident of a
2. A shell/conduit company that claims it is a resident of a
3. A resident of a Contracting State is deemed to be a shell/conduit
company if its total annual expenditure on operations in that Contracting State
is less than S$200,000 or Indian Rs. 50,00,000 in the
respective Contracting State as the case may be, in the immediately preceding
period of 24 months from the date the gains arise.
4. A resident of a
(a) it is listed on a recognised stock exchange of the
(b) its total annual
expenditure on operations in that
(Explanation: The cases of legal entities not having bona fide
business activities shall be covered by Article 3.1 of this Protocol.)
ARTICLE 4 : Paragraph 2 of Article 12 (Royalties
and Fees for Technical Services) of the Agreement shall be deleted and replaced
by the following paragraph:
“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
Contracting 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%.”
ARTICLE 5 : It is agreed that there shall be an
inter-governmental group consisting of representatives of the revenue
authorities of the two Contracting States which shall review the working of the
provisions of this Protocol at least once a year or earlier at the request of
either Contracting State and may make recommendations for improvements
including improvements to the provisions of this Protocol.
ARTICLE 6 : Articles 1, 2, 3 and 5 of this
Protocol shall remain in force so long as any Convention or Agreement for the
Avoidance of Double Taxation between the Government of the Republic of India
and the Government of Mauritius provides that any gains from the alienation of
shares in any company which is a resident of a Contracting State shall be
taxable only in the Contracting State in which the alienator is a resident.
ARTICLE 7 : This Protocol, which shall form an
integral part of the Agreement, shall come into force on 1 August, 2005.
IN WITNESS WHEREOF , the undersigned, being duly
authorized by their respective Governments have signed this Protocol.
Done at