Agreement between the
Government of India and the Government of the Republic of Lebanon for the
Avoidance of Double Taxation of Income of enterprises operating aircraft
Notification No. 86/F. No.
11 (53)/63-TPL, dated 28 June, 1969
G.S.R. 1552-1553.--Whereas
the annexed Agreement between the Government of India and the Government of the
Republic of Lebanon for the avoidance of double taxation of income of
enterprises operating aircraft has been ratified and the instruments of
ratification exchanged, as required by Article V of the said Agreement.
Now, therefore, in
exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43
of 1961) and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of
1964), the Central Government hereby directs that all the provisions of the
said Agreement shall be given effect to in the Union of India.
Whereas the Government of
India and the Government of the Republic of Lebanon desire to conclude an
agreement for the avoidance of double taxation of income of enterprises
operating aircraft chargeable to tax in the said countries in accordance with
the respective laws;
Now therefore, the said
two Governments do hereby agree as follows :
ARTICLE I: (1) The taxes
to which the Agreement shall apply are:
(a) in the case of India:
(i) the income-tax including any surcharge
on income-tax imposed under the Income-tax Act, 1961 (43 of 1961) as amended;
and
(ii) the
surtax imposed under the Companies (Profits) Surtax Act, 1964 (7 of 1964) as amended:
(hereinafter referred to
as "Indian tax");
(b) in the case of Republic of Lebanon: the income tax including
any additional tax on income-tax prescribed under the Income-tax law issued by
the Legislative Decree No. 144, dated June 12, 1959 as amended:
(hereinafter referred to
as "Lebanese tax").
(2) This Agreement shall
also apply to any identical or substantially similar taxes which are imposed
after the date of signature of this Agreement in addition to, or in place of,
the existing taxes.
ARTICLE II: (1) In this
Agreement unless the context otherwise requires.--
(a) the term "India" shall have
the meaning assigned to it in Article I of the Constitution of India;
(b) the term "the Republic of
Lebanon" shall have the meaning assigned to it in the Lebanese
Constitution;
(c) the terms "a Contracting
State" and the "other Contracting State" mean India or the
Republic of Lebanon, as the context requires;
(d) the term
"tax" means "Indian tax" or "Lebanese tax", as
the context requires;
(e) the term
"enterprise of a Contracting State" means--
(i) an air-line designated by the
Government of that State in pursuance of the Agreement dated September 19,
1964, as may be amended or revised from time to time, between the Government of
India and the Government of the Republic of Lebanon relating to air services,
or
(ii) an airline which is authorised by the
Government of that State by a general or special arrangement between the two
Contracting State to operate charter flights between or beyond their territories.
(2). In the application of
the provisions of this Agreement by one of the Contracting States, any term
used but not defined herein shall, unless the context otherwise requires, have
the meaning which it has under the laws in force in that State relating to the
taxes to which this Agreement applies.
ARTICLE III: (1) Income
derived from the operation of aircraft in international traffic by an
enterprise of one of the Contracting States shall be exempt from tax in the
other Contracting State.
(2) Paragraph (1) shall
likewise apply in respect of participations in pools of any kind of enterprises
engaged in air transport.
ARTICLE IV: The laws in
force in either of the Contracting States will continue to govern the
assessment and taxation of income in the Contracting States except where
express provision to the contrary is made in this Agreement.
ARTICLE V: (1) This
Agreement shall be ratified and the instruments of ratification shall be
exchanged at Beirut as soon as possible.
(2) This Agreement shall enter
into force on the date of the exchange of the instruments of ratification and
its provisions shall have effect:
(a) in India, in respect of the income
assessable for any year of assessment commencing on or after the 1st day of
April, 1962;
(b) in Lebanon, in respect of income assessable for any year of assessment
commencing on or after the 1st day of April, 1962.
ARTICLE VI: This Agreement
shall continue in effect indefinitely but either of the Contracting State, may
on or before the 30th day of June in any calendar year after the year 1970,
give notice of termination to the other Contracting State and in such event
this Agreement shall cease to the effective:
(a) in India, in respect of income
assessable for any year of assessment commencing on or after the 1st day of
April in the calendar year next following that year in which the notice is
given;
(b) in Lebanon, in respect of income
assessable for any year of assessment commencing on or after the 1st day of
April in the calendar year next following that year in which the notice is
given.
In witness whereof the
undersigned, duly authorised thereto, have signed the present Agreement.
Done in duplicate it
Beirut, this 22nd day of February, one thousand nine hundred and sixty-eight in
the Hindi, Arabic and English languages, all the three texts being equally
authentic, except in the case of doubt, the English text shall prevail.
Sd. K. Srinivasan, Sd.
Khalil Salem,
For the Government of
India. For
the Government of the
Republic of Lebanon.
Protocol between the
Government of India and Government of the Republic of Lebanon
The Government of India
and the Government of Republic of Lebanon.
Having entered into an
Agreement for the avoidance of Double Taxation of Income of enterprises
operating aircraft which is effected in respect of income assessable for any
year of assessment commencing on or after the 1st day of April, 1962.
Recognizing that Air-India
which is an enterprise of India and Middle East Airlines which is an enterprise
of the Republic of Lebanon have been deriving income, respectively, in the
Republic of Lebanon and India from the operation of aircraft in international
traffic which is assessable for one or more years of assessment prior to the
year of assessment commencing on the 1st day of April, 1962.
Considering that the
Indian Income-tax Act, 1922 (11 of 1922) has been repealed with effect from the
1st day of April, 1962.
Have accordingly agreed at
the time of signing of the said Agreement as follows :
The Government of India
has not levied any Indian tax on the income of Middle East Airlines for any of
the years of assessment aforementioned and hereby agrees not to levy such tax
hereafter, and
The Government of the
Republic of Lebanon has not levied any Lebanese tax on the income of Air-India
for any of the years of Assessment aforementioned and hereby agrees not to levy
such tax hereafter.
And, have further agreed
that this Protocol shall constitute an integral part of the said Agreement.
In witness whereof the
undersigned, duly authorised thereto, have signed the present Protocol.
Done in duplicate at
Beirut this 22nd day of February, one thousand nine hundred and sixty-eight in
the Hindi, Arabic and English languages, all the three texts being equally authentic,
except in the case of doubt, the English text shall prevail.
Sd. K. Srinivasan, Sd.
Khalil Salem
For the Government of
India. For
the Government of the
Republic of Lebanon.
SOCIALIST PEOPLES LIBYAN ARAB JAMAHIRIYA
Convention between the
Socialist Peoples Libyan Arab Jamahiriya and the Government of the Republic of
India for the avoidance of double taxation and the prevention of fiscal evasion
with respect to taxes on income
Notification F. No.
501/17/73-FTD, dated 1, July 1982
G.S.R. 484(E).--Whereas
the annexed Convention between the Socialist Peoples Libyan Arab Jamahiriya and
the Government of the Republic of India for avoidance of double taxation and
the prevention of fiscal evasion with respect to taxes on income has been ratified
and the instruments of ratification exchanged as required by Article 25 of the
said Convention;
Now, therefore, in
exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43
of 1961) and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of
1964), the Central Government hereby directs that all the provisions of the
said Convention shall given effect to in the Union of India.
ARTICLE I: Taxes
Covered.--1. This Convention shall apply to taxes on income imposed on behalf
of each Contracting State or local authorities, irrespective of the manner in
which they are levied.
2. They shall be regarded
as taxes on income all taxes imposed on
total income, or on elements of income.
3. The existing taxes to which this Convention shall apply are:
A. With regard to the Socialist Peoples Libyan Arab Jamahiriya:
(i) Real Estate Revenue Tax.
(ii) Agricultural
Revenue Tax.
(iii) Taxes on
Commercial, Industrial and professional profits, which comprise--
(a) taxes on profits realised from commercial industrial and
professional activities;
(b) taxes on
Companies.
(iv) Taxes on profits realised by practising
Fee Professions;
(v) Taxes on
wages, salaries and the like.
(vi) Taxes on Income realised abroad.
(vii) General
Tax on Income.
(viii) Al-Jihad Tax (Defence Tax).
(ix) Income
arising from depositing money in banks and savings accounts.
B. With regard to the Republic of India:
(i) The Income-tax including any surcharge
thereon imposed under the Income-tax Act, 1961 (43 of 1961);
(ii) the
surtax imposed under the Companies (Profits) Surtax Act, 1964 (7 of 1964).
4. The Convention shall
also apply to any identical or substantially similar taxes which are
subsequently imposed in addition, to, in the place of, the existing taxes. At
the end of each year, the competent authorities of the Contracting States shall
notify to each other any changes which have been made in their respective
taxation laws.
CHARTER II
Definitions
ARTICLE II: General
Definitions.--1. In this Convention, unless the context otherwise requires.--
(a) the terms "a contracting State" and "the other Contracting State" mean 'India' or 'Libya', as the context requires;
(b) the term
"person" comprises an individual, a company and any other body of
persons;
(c) the term "company" means any
body corporate or any entity which is treated as a body corporate for tax
purposes;
(d) the terms "enterprise of a
Contracting State" and "enterprise of the other Contracting
State" mean respectively an enterprise carried on by a resident of a
Contracting State and an enterprise by a resident of the other Contracting
State;
(e) the term "competent authority"
with respect to the Socialist Peoples Libyan Arab Jamahiriya means the Ministry
of Treasury, and with respect to India means the Ministry of Finance
(Department of Revenue).
2. For the purposes of
this Convention, the term "resident of a Contracting State" means any
person who under the law of that state, is liable to taxation therein by reason
of his domicile, resident, place of management or any other criterion of a
similar nature;
3. As regards the
application of the Convention by a Contracting State any term not otherwise
defined 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 the Convention.
ARTICLE III: The Tax
Home.--Without prejudice to the provisions of this Convention, the Tax Home of
any income shall be deemed to be the Contracting State in which the income
arises.
ARTICLE IV: Permanent
Establishment.--1. For the purposes of this Convention, the term
"permanent establishment" means a fixed place of business in which
the business of the enterprise is wholly or partly carried on.
2. The term
"permanent establishment" shall include especially :
(a) a place of management;
(b) a branch;
(c) an
office;
(d) a
factory;
(e) a
workshop;
(f) a mine,
quarry or other place of extraction of natural resources.
(g) a
building or building site which continues for a period of more than three
months;
3. The term "permanent establishment" shall not be
deemed to include:
(a) the use of facilities solely for the
purpose of storage and display of goods or merchandise belonging to the enterprise;
(b) the maintenance of a stock of goods or
merchandise belonging to the enterprise solely for the purpose of storage and
display;
(c) the maintenance of stock of goods or
merchandise belonging to the enterprise solely for the purpose of processing by
any other enterprise;
(d) the maintenance of a fixed place of
business solely for the purpose purchasing goods or merchandise, or for
collecting information, for the enterprise;
(e) the maintenance of a fixed place of
business solely for the purpose of advertising, for the supply of information,
for scientific research or for similar activities which have a preparatory or
auxiliary character, for the enterprise.
4. A person acting in a
Contracting State on behalf of an enterprise of the other Contracting State
other than an agent of an independent status to whom paragraph 5 applies--shall
be deemed to be a permanent establishment in the first-mentioned State if he
has and habitually exercises in that State, an authority to conclude contracts
in the name of the enterprise, unless his activities are limited to the
purchase of goods or merchandise for the enterprise.
5. An enterprise of a
Contracting State shall not be deemed to have a permanent establishment in the
other Contracting State merely because it carries on business in that other
State through a broker, general commission agent or any other agent of an
independent status, where such persons are acting independently in the ordinary
course of their business.
6. The fact that 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 the other State (whether through a permanent establishment or
otherwise) shall not itself constitute for either company a permanent
establishment of the other.
CHAPTER III
Taxation of Income
ARTICLE V: Income from
Immovable property.--1. Income from immovable property may be taxed in the
Contracting State in which such property is situated.
2. The term "immovable
property" shall be defined in accordance with the law of the Contracting
State in which the property in question is situated.
ARTICLE VI: Business
Profits.--1. The profits of an enterprise of a Contracting State shall be
taxable in the State where the enterprise is situated and also in the State
where it has a permanent establishment, in which case the tax shall be limited
to the profits attributable to the permanent establishment.
2. Where an enterprise of
a Contracting State carries on business in the other Contracting State through
a permanent establishment situated therein, there shall in each Contracting
State be attributed to the 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 the determination of
the profits of a permanent establishment, there shall be allowed as deduction
expenses which are incurred for the purpose of the permanent establishment
whether such expenses have been incurred in the state in which the permanent
establishment is situated or elsewhere in accordance with regulations of the
State in which the income is taxable.
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 purpose of the
preceding paragraphs, the profits to be attributed to the permanent
establishment shall be determined by the same method year by year unless there
is good and sufficient reason to the contrary.
6. Where profits include
items of income which are dealt with separately in other Article of this
Convention, then the provisions of those Articles shall not be affected by the
provisions of this Article.
ARTICLE VII: Shipping and
Air Transport.--Profits from the operation of ships or aircraft in
international traffic shall be taxable only in the Contracting State in which
the place of effective management of the enterprise is situated.
ARTICLE VIII: Associated
Enterprises.--Where--
(a) an enterprise of a Contracting State
participates directly or indirectly in the management, control or capital or an
enterprise of the other Contracting State, or
(b) the same person participate directly or
indirectly in the management, control or capital of enterprise of a Contracting
State, and an enterprise of the other Contracting State, and in either case
conditions are made or imposed between the two enterprises in their commercial
or financial relations which differ from those which would be made between
independent enterprise, 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.
It is to be understood
that the procedures available in the respective laws of each Contracting State
in this regard shall be applied.
ARTICLE IX: Dividends.--1.
Dividends paid by a Company which is registered in one of the Contracting
States may be taxed in that State.
2. The term
"dividends" shall be defined in accordance with the law of the Contracting
State in which the company in question is registered.
ARTICLE X: Interest.--1.
Interest arising in a Contracting State and paid to the resident of the other
Contracting State may be taxed in the Contracting State where it arises.
2. The provisions of
paragraph 1 shall not apply if the recipient of the interest, being a resident
of a Contracting State, has in the other Contracting State in which the
interest arises a permanent establishment with which the debt-claim from which
the interest arises is effectively connected. In such a case, the provisions of
Article 6 shall apply.
3. Interest shall be
deemed to arise in a Contracting State when the payer is that State itself, a
political sub-division, a local authority or a resident of that State.
ARTICLE XI: Royalties.--1.
Royalties arising in a Contracting State may be taxable in that State.
2. The term
"royalties" as used in this Article means payments of any kind as a
consideration for the use of, or the right to use, any copyright of literary, artistic
or scientific work, any patent, trade mark, design or model, plan, secret
formula or process of for the use of the right to use, industrial, commercial,
or scientific equipment, or for information concerning industrial, commercial
or scientific experience.
3. The term
"royalties" as used in this Article shall exclude rentals and other
income in respect of cinematographic films. Such rentals, and income shall, for
the purpose of this Convention, be considered the profits from business.
ARTICLE XII: Independent
Personal Services.--1. Income derived by a resident of a Contracting State in
respect of professional services or other independent activities of a similar
character shall be taxable only in that State unless he has a fixed base
regularly available to him in the other Contracting State for the purpose of
performing his activities. If he has such a fixed base, the income may be taxed
in the other Contracting State but only so much of it as is attributable to
that fixed base.
2. The term "professional
services" means independent activities according to the laws and
regulations in force in each Contracting State.
ARTICLE XIII: Dependent
Personal Services.--Salaries, wages and similar emoluments arising in one of
the Contracting States may be taxable in the State where the services giving
rise to that income are performed but if such income is realised from work
carried out on a ship or aircraft operating in the field of international
transport, it shall only be taxable in the State where the place of effective
management of the enterprise is situated.
ARTICLE XIV: Directors'
Fees.--Directors' fees and similar payments derived by a resident of a
Contracting State in his capacity as a member of the Board of Directors of a
company which is a resident of the other Contracting State may be taxed in that
other State.
ARTICLE XV: Artistes and
Athletes.--Notwithstanding the provisions of Articles 12 and 13, income derived
by public entertainers, such as theatre, motion picture, radio or television
artistes and musicians and by athletes, from their personal activities as such
may be taxed in the Contracting State in which these activities are exercised.
ARTICLE XVI:
Pensions.--Pensions and other similar income paid to a resident of Contracting
State in consideration of past employment shall be taxable only in that State.
ARTICLE XVII: Government
Functions/Civil Service.--1. Remuneration paid by the Government of one of the
Contracting States to any individual for services rendered to that Government
in the discharge of governmental functions shall be exempt from tax in other
State if the individual is not resident in that other State or is resident in
other State solely for the purpose of rendering those services, so provided
however, that such an individual has the nationality of that Contracting State.
2. The provision of this
article shall not apply to payments in respect of services rendered in
connection with any trade or business carried on by either of the Government
for purposes of profit.
3. In this article,
"Government" shall be deemed to include public corporation and any
other similar parasitical bodies.
ARTICLE XVIII:
Students.--1. Payments which a student or business apprentice who is or was
formerly a resident of a Contracting State and who is present in the other
Contracting State solely for the purpose of his education or training receives
for the purpose of his maintenance, education or training shall not be taxed in
that other State, provided that such payments are made to him from sources
outside that other State.
2. The provision of this
article shall also apply to the income which the student or business apprentice
may derive from an employment in the other Contracting State; provided that
such employment is related to his study or training and/or that the income
deriving there from is required by the student or trainee to meet his living
expenses.
ARTICLE XIX: Professors,
Teachers and Researchers.--A professor, teacher or research worker from one of
the Contracting States who receives remuneration for teaching or carrying out
research work during a period of temporary residence not exceeding three months
at a university, college or/other institute of higher education or scientific
research in the other Contracting State shall be exempt from tax in that other
State, in respect of that remuneration, provided that the period of three
months may be extended by similar periods.
CHAPTER IV
Elimination of double
taxation
ARTICLE XX: Tax
Credits.--1. When a resident of a Contracting State derives income which has
also suffered tax in the other Contracting State the first-mentioned State
shall allow a deduction from its tax on the income of that person equal to the
tax in the other Contracting State; provided that the deduction shall not exceed
that part of the tax, as computed before the deduction is given which is
applicable to the income taxed in the other Contracting State.
2. Nothing in this Article
contained shall prevent the granting of such further relief as may be
appropriate under the provisions of the law of either Contracting State in
respect of any amount by which the tax in case of that States exceeds the
credit allowed on its account in the other State in accordance with the
provisions of this Article.
CHAPTER V
Special provisions
ARTICLE XXI:
Non-discrimination.--1. The nationals of a Contracting State shall not be
subjected in the other Contracting State to any taxation or any requirement
connected therewith which is other or
more burdensome than the taxation and connected requirements to which nationals
of that other State in the same circumstances are or may be subjected.
2. The term
"national" means :
(a) all individuals possessing the nationality of a Contracting
State;
(b) all legal persons, partnerships and
associations deriving their status as such from the law in force in a
Contracting State.
3. The taxation of 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. The provision shall not be construed as obliging a Contracting
State to grant to residents of the other Contracting State any personal
allowance, reliefs and reductions for taxation purposes on account of civil
status or family responsibilities which it grants to its own residents.
4. Enterprises of a
Contracting State, the capital of which is wholly or partly owned or controlled
directly or indirectly, by one or more residents of the other Contracting
State, shall not be subjected in the first-mentioned Contracting State to any
taxation or any requirements 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.
ARTICLE XXII: Mutual
Agreement Procedure.--1. Where a resident of a Contracting State considers that
the actions of one or both of the Contracting State result or will result for
him in taxation not in accordance with this Convention he may, notwithstanding
the remedies provided by the national laws of those States, present his case to
the competent authority of the Contracting State of which he is a resident.
2. The competent authority
shall endeavour if the objection appears to it to be justified and if it is not
itself able to arrive at an appropriate solution, to resolve the case by mutual
agreement with the competent authority of the other Contracting State, with a
view to the avoidance of taxation not in accordance with the Convention.
3. The competent
authorities of the Contracting States shall endeavour to resolve by mutual
agreement any difficulties or doubts arising as to the interpretation or
application of the Convention. They may also consult together for the
elimination of double taxation in cases not provided for in the Convention.
4. The competent
authorities of the Contracting States may communicate with each other directly
for the purpose of reaching an agreement in the sense of the preceding
paragraphs. When it seems advisable in order to reach agreement to have an oral
exchange of opinions, such exchange may take place through a Commission
consisting of representatives of the competent authorities of the Contracting
States.
ARTICLE XXIII: Exchange of
Information.--1. The competent authorities of the Contracting States shall
exchange such information as is necessary for the carrying out of this
Convention and of the domestic laws of the Contracting States concerning taxes
covered by this Convention in so far as the taxation thereunder is in
accordance with this Convention. Information shall also be exchanged as is
necessary for the prevention of fiscal evasion of taxes which are the subject
of this Convention. Any information so exchanged shall be treated as secret and
shall not be disclosed to any persons or authorities other than those concerned
with the assessment of collection of the taxes which are the subject of the
Convention.
2. In no case shall the provisions
of paragraph I be constituted so as to impose on one of the Contracting States
the obligation :
(a) to carry out administrative measures at
variance with the laws or the administrative practice of that or of the other
Contracting State;
(b) to supply particulars 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 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 XXIV: Diplomatic
and Consular Officials.--Nothing in this Convention shall affect the fiscal
privileges of diplomatic or consular officials under the general rules of
international law or under the provisions of special agreements.
Final provisions
ARTICLE XXV: Entry into
Force.--The Convention shall enter into force upon the exchange of instruments
of ratification and its provisions shall have effect from the tax year
commencing after the said ratification.
Any agreement reached
shall be implemented notwithstanding any time limits in the national laws of
the Contracting State.
ARTICLE XXVI:
Termination.--This Convention remains in force until denounced by one of the
Contracting States. Either Contracting State may denounce the Convention
through diplomatic channels by giving notice of termination at least 6 months
before the end of any calendar year beginning 5 years after the agreement enters
into force. In such event the Convention shall cease to have effect after the
end of the calendar year during which notice of the denouncing of the
Convention is given by one Contracting State to the other.
In witness of the
agreement reached as above, the signatories have today signed this Convention
in virtue of the authority delegated to them for this purpose by their
respective Governments.
Done in duplicate at
THIPOLI, on 2nd March, 1981 corresponding to 25 Rabiul Akhar 1390 P.D. in the
English, Hindi and Arabic languages, all texts being equally authoritative
except in the case of doubt, the English text shall prevail.
Sd/- Sd/-
Narendra Singh, Ammar
Sasi Atiya,
Ambassador of India Director
General Taxation
Socialist
People Libyan Arab Jamahiriya.