49A. Agreement for avoidance of
double taxation and prevention of fiscal evasion
Whereas the annexed Convention between the
Government of the Republic of India and the Government of the Republic of
Trinidad and Tobago for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income, has entered into force on the
thirteenth day of October, 1999, thirty days after the receipt of the later of
the notifications by both the Contracting States to each other of the
completion of the procedures required under their laws for bringing into force
of the said Convention in accordance with article 29 of the said Convention;
Now, therefore, in exercise of the powers
conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), 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 720(E), dated 26-10-1999.
ANNEXURE
Convention between the Government of the
Republic of India and the Government of the Republic of Trinidad and Tobago for
the Avoidance of Double Taxation and the Prevention of fiscal evasion with
respect to taxes on income
The Government
of the
Article 1 : Personal Scope - This Convention
shall apply to persons who are residents of one or both of the Contracting
States.
Article 2 : Taxes Covered - 1. This
Convention shall apply to taxes on income imposed on behalf of a
2. There shall be regarded as taxes on income
all taxes imposed on total income or on elements of income including taxes on
gains from the alienation of movable or immovable property, taxes on the total
amounts of wages or salaries paid by enterprises, as well as taxes on capital
appreciation.
3. The existing taxes which are the subject of
this Convention are :
(a) in the case of Trinidad and Tobago, the corporation tax, the
income-tax, the unemployment levy and the petroleum profits tax (hereinafter
referred to as “Trinidad and Tobago tax”);
(b) in the case of
4. This Convention shall apply also to any
identical or substantially similar taxes which are imposed by a
Article 3 : General Definitions - 1. For the
purposes of this Convention, unless the context otherwise requires :
(a) the term “Trinidad and Tobago” means the Archipelagic State of
Trinidad and Tobago, comprising the several islands of Trinidad and Tobago, its
archipelagic waters, territorial sea and the airspace thereof, together with
the adjacent submarine areas of the Exclusive Economic Zone and the continental
shelf beyond the territorial sea over which Trinidad and Tobago exercises
sovereign or other rights in accordance with the laws of Trinidad and Tobago
and with international law;
(b) the term “India” means the territory of India and includes the
territorial sea and airspace above it, as well as any other maritime zone in
which India has sovereign rights, other rights and jurisdiction, according to
the Indian law and in accordance with international law, including the U.N.
Convention on the Law of the Sea;
(c) the terms “a
(d) 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;
(e) the term “company” means any body corporate or any entity which is
treated as a body corporate for tax purposes;
(f) the terms “enterprise of a Contracting State” and “enterprise of
the other Contracting State” mean respectively an enterprise carried on by a
resident of a Contracting State and an enterprise carried on by a resident of
the other Contracting State;
(g) the term “international traffic” means any transport by a ship or
aircraft operated by an enterprise which is a resident of a
(h) the term “competent authority” means :
(i) in the case of
(ii) in the case of India, the Central Government
in the Ministry of Finance (Department of Revenue) or their authorised
representative;
(i) the term “national” means :
(i) any individual possessing the nationality of a
(ii) any legal person, partnership or association
deriving its status as such from the laws in force in a
(j) the term “fiscal year” means :
(i) in the case of Trinidad and Tobago, the “year
of income” as defined in section 2(1) of the Income-tax Act, Chapter 75
: 01 ;
(ii) in the case of
(k) the term “tax” means
2. In the application of this Convention by a
Contracting State any term not defined herein shall, unless the context
otherwise requires, have the meaning which it has under the laws of that
Contracting State relating to the taxes which are the subject of this
Convention.
Article 4 : Resident
- 1. For purposes of this Convention, the term “resident of a Contracting
State” means any person who, under the laws of that State is liable to tax
therein by reason of his domicile, residence, place of management or any other
criterion of a similar nature.
2. Where by reason of the provisions of
paragraph 1 an individual is a resident of both
(a) he shall be deemed to be a resident of the State in which he has a
permanent home available to him; if he has a permanent home available to him in
both States, he shall be deemed to be a resident of the State with which his
personal and economic relations are closer (“centre of vital interests”);
(b) if the State in which he has his centre of vital interests cannot
be determined, or if he has not a permanent home available to him in either
State, he shall be deemed to be a resident of the State in which he has an
habitual abode ;
(c) if he has an habitual abode in both States or in neither of them,
he shall be deemed to be a resident of the State of which he is a national;
(d) if he is a national of both States or of neither of them, the
competent authorities of the Contracting States shall settle the question by
mutual agreement.
3. Where by reason of the provisions of paragraph
1 a person other than an individual is a resident of both Contracting States,
then it shall be deemed to be a resident of the State in which its place of
effective management is situated. If the State in which its place of effective
management is situated cannot be determined, then the competent authorities of
the Contracting States shall settle the question by mutual agreement.
Article 5 : Permanent
Establishment - 1. For the purposes of this Convention the term
“permanent establishment” means a fixed place of business through which the
business of an enterprise is wholly or partly carried on.
2. The term “permanent establishment” includes
especially :
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a warehouse in relation to a person providing storage facilities
for others;
(g) a sales outlet;
(h) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources;
(i) a drilling rig or ship used for, or in
connection with, the exploration or development of natural resources;
(j) a dredging project;
(k) a farm, plantation or other place where agricultural, forestry,
plantation or related activities are carried on; and
(l) a building site or construction or assembly
project or supervisory activities in connection therewith only if such site,
project or activity last more than nine months.
3. Notwithstanding the preceding provisions of
this Article, the term “permanent establishment” shall be deemed not to include
:
(a) the use of facilities solely for the purpose of storage, display or
delivery of goods or merchandise belonging to the enterprise ;
(b) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of storage, display or delivery;
(c) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of processing by another enterprise;
(d) the maintenance of a fixed place of business solely for the purpose
of purchasing goods or merchandise or of collecting information, for the
enterprise;
(e) the maintenance of a fixed place of business solely for the purpose
of carrying on, for the enterprise, any other activity of a preparatory or
auxiliary character;
(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.
4. Notwithstanding the provisions of paragraphs
1 and 2, where a person, other than an agent of an independent status to whom
paragraph 6 applies, is acting in a Contracting State on behalf of an
enterprise of the other Contracting State, that enterprise shall be deemed to
have a permanent establishment in the first-mentioned Contracting State in
respect of any activities which that person undertakes for the enterprise, if
such a person :
(a) has and habitually exercises in that State an authority to conclude
contracts in the name of the enterprise, unless the activities of such person
are limited to those mentioned in paragraph 3 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 ; or
(b) has no such authority, but habitually maintains in the
first-mentioned State a stock of goods or merchandise from which he regularly
delivers goods or merchandise on behalf of the enterprise ; or
(c) habitually secures orders in the first-mentioned State, wholly or
almost wholly for the enterprise itself or for the enterprise and other
enterprises controlling, controlled by, or subject to the same control, as that
enterprise.
5. 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 insures risks situated therein through a person other than an agent of
an independent status to whom paragraph 6 applies.
6. An enterprise shall not be deemed to have a
permanent establishment in a
7. The fact that a company which is a resident
of a Contracting State controls or is controlled by a company which is a
resident of the other Contracting State, or which carries on business in that
other state (whether through a permanent establishment, or otherwise), shall
not of itself constitute either company a permanent establishment of the other.
Article 6 : Income
from Immovable Property - 1.
Income derived by a resident of a
2. The term “immovable property” shall have the
meaning which it has under the laws 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 business in the other
Contracting State through a permanent establishment situated therein, there
shall in each Contracting State be attributed to that permanent establishment
the profits which it might be expected to make if it were a distinct and
separate enterprise engaged in the same or similar activities under the same or
similar conditions and dealing wholly independently with the enterprise of
which it is a permanent establishment.
3. In determining the profits of a permanent
establishment, there shall be allowed as deductions expenses which are incurred
for the purposes of the business of the permanent establishment, including
executive and general administrative expenses so incurred, whether in the state
in which the permanent establishment is situated or elsewhere, in accordance
with the provisions of and subject to the limitations of the tax laws of that
State.
4. No profits shall be attributed to a permanent
establishment by reason of the mere purchase by that permanent establishment of
goods or merchandise for the enterprise.
5. For the purposes of the preceding paragraphs,
the profits to be attributed to the permanent establishment shall be determined
by the same method year by year, unless there is good and sufficient reason to
the contrary.
6. Where profits include items of income which
are dealt with separately in other Articles of this Convention, then the
provisions of those Articles shall not be affected by the provisions of this
article.
Article 8 : Shipping
and Air Transport - 1. Profits derived by an enterprise of a
2. Profits derived by a transportation
enterprise which is a resident of a Contracting State from the use,
maintenance, or rental of containers (including trailers and other equipment
for the transport of containers) used in 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
earned incidentally on funds connected with the operation of ships or aircraft
in international traffic shall be regarded as profits derived from the
operation of such ships or aircraft, and the provisions of Article 11 shall not
apply in relation to such interest.
4. The provisions of paragraph 1 shall also
apply to profits from the participation in a pool, a joint business or an international
operating agency.
Article 9 :
Associated Enterprises - 1.
Where :
(a) an enterprise of a
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
and in either
case conditions are made or imposed between the two enterprises in their
commercial or financial relations which differ from those which would be made
between independent enterprises, then any profits which would, but for those
conditions, have accrued to one of the enterprises, but, by reason of those
conditions have not so accrued, may be included in the profits of that
enterprise and taxed accordingly.
2. Where a Contracting State includes in the
profits of an enterprise of that State and taxes accordingly - profits on which
an enterprise of the other Contracting State has been charged to tax in that
other State and the profits so included are profits which would have accrued to
the enterprise of the first-mentioned State if the conditions made between the
two enterprises had been those which would have been made between independent
enterprises, then that other State shall make appropriate adjustment to the
amount of the tax charged therein on those profits. In determining such
adjustment, due regard shall be had to the other provisions of this Convention
and the competent authorities of the Contracting States shall, if necessary,
consult each other.
Article 10 : Dividends
- 1. Dividends paid by a company which is a resident of a
2. However, such dividends may also be taxed in
the
3. The term “dividends” as used in this Article
means income from shares or other rights, not being debt-claims, participating
in profits, as well as income from other corporate rights which is subjected to
the same taxation treatment as income from shares by the laws of the State of
which the company making the distribution is a resident.
4. The provisions of paragraphs 1 and 2 shall
not apply if the beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other Contracting State of which
the company paying the dividends is a resident, through a permanent
establishment situated therein, or performs in that other state independent
personal services from a fixed base situated therein, and the holding in
respect of which the dividends are paid is effectively connected with such
permanent establishment or fixed base. In such case the provisions of Article 7
or Article 14, as the case may be, shall apply.
5. Where a company which is a resident of a
Contracting State derives profits or income from the other Contracting State,
that other state may not impose any tax on the dividends paid by the company,
except insofar as such dividends are paid to a resident of that other state or
insofar as the holding in respect of which the dividends are paid is
effectively connected with a permanent establishment or a fixed base situated
in that other state, nor subject the company’s undistributed profits to a tax
on the company’s undistributed profits, even if the dividends paid or the
undistributed profits consist wholly or partly of profits or income arising in
such other State.
Article 11 : Interest
- 1. Interest arising in a
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) (a) in the case of Trinidad and Tobago,
the Central Bank of Trinidad and Tobago, the Agricultural Development Bank, the
Export Insurance Company, the National Housing Authority, the National
Insurance Board, the Home Mortgage Bank, the Deposit Insurance Corporation, the
Small Business Development Company, the Development Finance Limited and the
Trinidad and Tobago Mortgage Finance Company ;
(ii) (b) in the case of India, the Reserve
Bank of India, the Industrial Finance Corporation of India, the Industrial
Development Bank of India, the Export Import Bank of India, the National
Housing Bank, the Small Industries Development Bank of India and the Industrial
Credit and Investment Corporation of India (ICICI) ; or
(iii) any other institution or agency as may be
mutually agreed upon between the two Contracting States.
4. The term ‘interest” as used in this Article
means income from debt-claims of every kind, whether or not secured by mortgage
and whether or not carrying a right to participate in the debtor’s profits, and
in particular, income from Government securities and income from bonds or
debentures, including premiums and prizes attaching to such securities, bonds
or debentures, but shall not include any item which is treated as a
distribution under the provisions of Article 10 of this Convention. 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 payment shall remain taxable according to the
laws of each
Article 12 : Royalties
and Fees for Technical Services - 1. Royalties or fees for technical services arising in a
2. However, such royalties or fees for technical
services may also be taxed in the Contracting State in which they arise and
according to the laws of that State, but if the recipient is the beneficial
owner of the royalties or fees for technical services the tax so charged shall
not exceed 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 a
literary, artistic or scientific work including cinematograph films or
recordings on any means of reproduction for use in connection with television
or radio broadcasting, any patent, trade mark, design or model, plan, know-how,
computer software programme, secret formula or
process, or any industrial, commercial or scientific equipment or for
information concerning industrial, commercial or scientific experience ;
(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 or fees for technical
services being a resident of a Contracting State, carries on business in the
other Contracting State, in which the royalties or fees for technical services
arise, through a permanent establishment situated therein, or performs in that
other State independent personal services from a fixed base situated therein,
and the right or property in respect of which the royalties or fees for
technical services are paid is effectively connected with such permanent
establishment or fixed base. In such 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 Contracting State, due
regard being had to the other provisions of this Convention.
Article 13 : Capital
Gains - 1. Gains
derived by a resident of a Contracting State from the alienation of immovable
property referred to in Article 6 and situated in the other Contracting State
may also be taxed in that other State.
2. Gains from the alienation of movable property
forming part of the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting State or of
movable property pertaining to a fixed base available to a resident of a
Contracting State in the other Contracting State for the purpose of performing
independent personal services, including such gains from the alienation of such
a permanent establishment (alone or with the whole enterprise) or of such fixed
base, may also be taxed in that other State.
3. Gains derived by an enterprise of a
Contracting State from the alienation of ships or aircraft operated in
international traffic or movable property pertaining to the operation of such
ships, aircraft shall be taxable only in that 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 Contracting State
may be taxed in that State.
5. Gains from the alienation of shares other
than those mentioned in paragraph 4 in a company which is a resident of a
Contracting State may be taxed in that State.
6. Gains from the alienation of any property
other than that referred to in paragraphs 1, 2, 3, 4 and 5, shall be taxable
only in the Contracting State of which the alienator is a resident.
Article 14 : Independent
Personal Services - 1.
Income derived by a resident of a Contracting State in respect of professional
services or other 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 month period commencing or ending in the
fiscal year concerned; in that case, only so much of the income as is derived
from his activities performed in that other State may be taxed in that other
State; or
(c) if the remuneration for his activities in the other Contracting
State is paid by a resident of that Contracting State or is borne by a
permanent establishment or a fixed base situated in that Contracting State and
exceeds in the fiscal year a sum of Rupees 40,000 or its equivalent in Trinidad
and Tobago currency.
2. The term “professional services” includes
especially independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of medical practitioners,
lawyers, engineers, architects, dentists and accountants.
Article 15 : Dependent
Personal Services - 1.
Subject to the provisions of Articles 16, 18 and 19 salaries, wages, emoluments
and other similar remuneration derived by a resident of a Contracting State in
respect of an employment shall be taxable only in that State unless the
employment is exercised in the other Contracting State. If the employment is so
exercised, such remuneration as is derived therefrom
may also be taxed in that other State.
2. Notwithstanding the provisions of paragraph
1, remuneration derived by a resident of a Contracting State in respect of an
employment exercised in the other Contracting State shall be taxable only in
the first-mentioned State if :
(a) the recipient is present in the other State for a period or periods
not exceeding in the aggregate 183 days in any 12 month period commencing or ending
in the fiscal year concerned ; and
(b) the remuneration is paid by, or on behalf of, an employer who is
not a resident of the other State; and
(c) the remuneration is not borne by a permanent establishment or a
fixed base which the employer has in the other State.
3. Notwithstanding the preceding provisions of
this Article, remuneration derived in respect of an employment exercised aboard
a ship or aircraft operated in international traffic, by an enterprise of a
Contracting State may be taxed in that State.
Article 16 : Directors’
Fees - Directors’ fees and
other similar payments derived by a resident of a Contracting State in his
capacity as a member of the Board of Directors of a company which is a resident
of the other Contracting State may also be taxed in that other State.
Article 17 : Artistes
and Sports persons - 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 sports person,
from his personal activities as such exercised in the other Contracting State,
may also be taxed in that other State.
2. Where income in respect of personal
activities exercised by an entertainer or a sports person in his capacity as
such accrues not to the entertainer or sports person 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 sports person are exercised.
3. The provisions of paragraphs 1 and 2, shall
not apply to income from activities performed in a Contracting State by
entertainers or sports persons if the visit to that State is substantially
supported by public funds of one or both of the Contracting States or of
political sub-divisions or local authorities thereof. In such a case, the
income is taxable only in the Contracting State of which the entertainer or
sports person is a resident.
Article 18 : Pensions
and Social Security Payments
- 1. Subject to the provisions of paragraph 2 of Article 19, pensions
and other similar remuneration paid in consideration of past employment to a
resident of a Contracting State and any annuity paid to such a resident may
also be taxed in that State.
2. Notwithstanding the provisions of paragraph 1,
pensions paid and other payments made under a public scheme which is part of
the social security system of a Contracting State or a political sub-division
or a local authority thereof shall be taxable only in that State.
Article 19 : Government
Service - 1. (a)
Remuneration, other than a pension, paid by a Contracting State or a political
sub-division or a local authority thereof to an individual in respect of
services rendered to that State or sub-division or authority shall be taxable
only in that State.
(b)
However, such remuneration shall be taxable only in the other Contracting State
if the services are rendered in that other State and the individual is a
resident of that State who :
(i) is a national of that State; or
(ii) did not become a resident of that State solely
for the purpose of rendering the services.
2. (a) Any pension paid by, or out of funds created by, a
Contracting State or a political sub-division or a local authority thereof to
an individual in respect of services rendered to that State or sub-division or
authority shall be taxable only in that State.
(b)
However, such pension shall be taxable only in the other Contracting State if
the individual is a resident of, and a national of, that other State.
3. The provisions of Articles 15, 16 and 18
shall apply to remuneration and pensions in respect of services rendered in
connection with a business carried on by a Contracting State or a political
sub-division or a local authority thereof.
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, 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 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 seven consecutive
years from the date of his first arrival in that other Contracting State.
Article 21 : Professors,
Teachers and Research Scholars -
1. A professor, teacher or research scholar 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 Contracting State if he
is resident in that State in the fiscal year in which he visits the other
Contracting State or in the immediately preceding fiscal year.
4. For the purposes of paragraph 1 “approved
institutions” means an institution which has been approved in this regard by
the competent authority of the State in which the institution is located.
Article 22 : Other
Income - 1. Items of
income of a resident of a Contracting State, wherever arising, not dealt with
in the foregoing Articles of this Convention shall be taxable only in that
State.
2. The provisions of paragraph 1 shall not apply
to income, other than income from immovable property as defined in paragraph 2
of Article 6,
(a) 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 ;
(b) if the 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 of any sort or gambling
or betting of any form or nature whatsoever, such income may be taxed in, the
other Contracting State.
3. Notwithstanding the provisions of paragraphs 1
and 2, items of income of a resident of a Contracting State not dealt with in
the foregoing Articles of this Convention and arising in the other Contracting
State may also be taxed in that other State.
Article 23 : Elimination
of Double Taxation - 1.
The laws in force in either of the Contracting State 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 Trinidad and Tobago, double
taxation shall be eliminated as follows :
Where a
resident of Trinidad and Tobago derives income which, in accordance with the
provisions of this Convention, may be taxed in India, Trinidad and Tobago shall
allow as a deduction from the tax on the income of that resident an amount
equal to the income-tax paid in India, whether directly or by deduction at
source. Such deduction shall not, however, exceed that part of the income-tax
as computed before the deduction is given, which is attributable to the income
which may be taxed in India.
3. In the case of India, double taxation shall
be eliminated as follows :
Where a
resident of India derives income which, in accordance with the provisions of
this Convention, may be taxed in Trinidad and Tobago, India shall allow as a
deduction from the tax on the income of that resident an amount equal to the
income-tax paid in Trinidad and Tobago, whether directly or by deduction at
source. Such deduction shall not, however, exceed that part of the income-tax,
as computed before the deduction is given, which is attributable to the income
which may be taxed in Trinidad and Tobago.
4. The tax payable in the Contracting State
mentioned in paragraphs 2 and 3 of this Article shall be deemed to include the
tax which would have been payable but for the tax incentives granted under the
laws of the Contracting State and which are designed to promote economic
development.
5. Income which in accordance with the
provisions of this Convention, is not to be subjected to tax in a Contracting
State, may be taken into account for calculating the rate of tax to be imposed
in that Contracting State.
Article 24 : Non-discrimination
- 1. Nationals of a
Contracting State shall not be subjected in the other Contracting State to any
taxation or any requirement connected therewith, which is other or more
burdensome than the taxation and connected requirements to which nationals of
that other State in the same circumstances are or may be subjected. This
provision shall, notwithstanding the provisions of Article 1, also apply to
persons who are not residents of one or both of the Contracting States.
2. The taxation on a permanent establishment
which an enterprise of a Contracting State has in the other Contracting State
shall not be less favourably levied in that other
State than the taxation levied on enterprises of that other State carrying on
the same activities. This provision shall not be construed as preventing a
Contracting State from charging the profits of a permanent establishment which
a company of the other Contracting State has in the first-mentioned State at a
rate of tax which is higher than that imposed on the profits of a similar
company of the first-mentioned Contracting State, nor as being in conflict with
the provisions of paragraph 3 of Article 7 of this Convention.
3. Nothing in this Article shall be construed as
obliging a Contracting State to grant to the residents of the other Contracting
State any personal allowances, reliefs or deductions
for taxation purposes on account of civil status or family responsibilities
which it grants to its own residents.
4. Except where the provisions of Article 9,
paragraph 7 of Article 11 or paragraph 6 of Article 12 apply, interest, royalties
and fees for technical services 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.
5. 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.
6. The provisions of this Article shall,
notwithstanding the provisions of Article 2, apply to taxes of every kind and
description.
Article 25 : Mutual
Agreement Procedure - 1. Where
a person considers that the action 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 24, to that of the Contracting State of which he is a
national. The case must be presented within three years from the first
notification of the action resulting in taxation not in accordance with the
provisions of this Convention.
2. The competent authority shall endeavour if the objection appears to it to be justified
and if it is not itself able to arrive at a satisfactory solution, to resolve
the case by mutual agreement with the competent authority of the other
Contracting State with a view to the avoidance of taxation which is not in
accordance with this Convention. Any agreement reached shall be implemented
notwithstanding any time limits in the domestic law of the Contracting States.
3. The competent authorities of the Contracting
States shall endeavour to resolve by mutual agreement
any difficulties or doubts arising as to the interpretation or application of
this Convention. They may also consult together for the elimination of double
taxation in cases not provided for in this Convention.
4. The competent authorities of the Contracting
States may communicate with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs. The competent authorities
shall, through consultations, develop appropriate bilateral procedures,
conditions, methods and techniques for the implementation of the mutual
agreement procedure provided for in this Article.
Article 26 : Exchange
of Information - 1.
The competent authorities of the Contracting States shall exchange such
information (including documents), as is necessary for carrying out the
provisions of this Convention or of the domestic laws of the Contracting States
concerning taxes covered by this Convention insofar as the taxation thereunder is not contrary to this 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 this
Convention. Such persons or authorities shall use the information only for such
purposes. They may disclose the information in public court proceedings or in
judicial decisions.
2. In no case shall the provisions of paragraph 1
be construed so as to impose on a Contracting State the obligation :
(a) to carry out administrative measures at variance with the laws and
administrative practice of that or of the other Contracting State;
(b) to supply information or documents which are not obtainable under
the laws or in the normal course of the administration of that or of the other
Contracting State;
(c) to supply information or documents which would disclose any trade,
business, industrial, commercial or professional secret or trade process, or
information, the disclosure of which would be contrary to public policy.
Article 27 : Diplomatic
Agents and Consular Officers -
Nothing in this Convention shall affect the fiscal privileges of diplomatic
agents or consular officers under the general rules of international law or
under the provisions of special agreements.
Article 28 : Collection
Assistance - 1. The Contracting States undertake 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 Contracting State in the collection of a revenue claim shall
include a certification by such authority that, under the laws of that State,
the revenue claim has been finally determined. For the purposes of this
Article, a revenue claim is finally determined when a Contracting State has the
right under its internal law to collect the revenue claim and the taxpayer has
no further rights to restrain collection.
3. Amount collected by the competent authority
of a contracting State pursuant to this Article shall be forwarded to the
competent authority of the other
4. Nothing in this Article shall be construed as
imposing on either Contracting State the obligation to carry out administrative
measures of a different nature from those used in the collection of its own
taxes or those which would be contrary to its public policy.
Article 29 : Entry
into Force - 1. The Contracting States shall notify each other in writing,
through diplomatic channels, of the completion of the procedures required by
the respective laws for the entry into force of this Convention.
2. This Convention shall enter into force thirty
days after the receipt of the later of the Notifications referred to in
paragraph 1 of this Article.
3. The provisions of this Convention shall have
effect :
(a) in Trinidad and Tobago :
(i) in respect of taxes withheld at source, to
income paid or credited on or after first January in the calendar year next following
that in which this Convention enters into force;
(ii) in respect of other taxes on income, to income
in any taxable year beginning on or after first January in the calendar year
next following that in which this Convention enters into force; and
(b) in India, in respect of income derived in any fiscal year beginning
on or after the first day of April next following the calendar year in which
this Convention enters into force.
Article 30 : Termination
- This Convention shall remain in force indefinitely until terminated by a
Contracting State. Either Contracting State may terminate this Convention,
through diplomatic channels, by giving notice of termination at least six
months before the end of any calendar year beginning after the expiration of
five years from the date of entry into force of this Convention. In such event,
this Convention shall cease to have effect :
(a) in Trinidad and Tobago :
(i) in respect of taxes withheld at source, to
income paid or credited on or after first January in the calendar year next
following that in which the notice is given ;
(ii) in respect of other taxes on income, to income
in any taxable year beginning on or after first January in the calendar year
next following that in which the notice is given ;
(b) in India, in respect of income derived in any previous year on or
after the first April next following the calendar year in which the notice is
given.
In witness
whereof the undersigned, being duly authorised thereto,
have signed this Convention.
Done in
duplicate at Port of Spain this 8th day of February, 1999 in English and Hindi
languages, both texts being equally authentic. In case of divergence, between
the texts, the English text shall be the operative one.