Agreement Between the Government of the Republic of India and the Government of the State of Qatar For the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income
Notification No. 11231 [F.
No. 501/4/94-FTD], dated 8-2-2000
Whereas the annexed
Agreement between the Government of the Republic of India and the Government of
the State of Qatar for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income has come into force on the 15th
day of January, 2000, on the notification by both the Contracting States to
each other, under Article 29 of the said Agreement, of the completion of the
procedures required by their respective laws for bringing into force of the
said Agreement;
Now, therefore, in
exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43
of 1961), the Central Government hereby directs that all the provisions of the
said Agreement shall be given effect to in the Union of India.
Agreement Between the
Government of the Republic of India and the Government of the State of Qatar
For the avoidance of double taxation and for the prevention of fiscal evasion
with respect to taxes on income.
The Government of the
Republic of India and the Government of the State of Qatar, desiring to
conclude an Agreement for the avoidance of double taxation and the prevention
of fiscal evasion with respect to taxes on income and with a view to promoting
economic co-operation between the two countries, have agreed as follows:
Article 1
Person covered
This Agreement shall apply
to persons who are residents of one or both of the Contracting States.
Article 2
Taxes covered
1. This Agreement shall
apply to taxes on income imposed on behalf of a Contracting State or of its
political sub-divisions or local authorities irrespective of the manner in
which they are levied.
2. The existing taxes to
which the Agreement shall apply are in particular:
(a) In India:
the income-tax, including any surcharge
thereon; and
(hereinafter referred to as "Indian
tax");
(b) In the State of Qatar:
the Income-tax
(hereinafter referred to
as "Qatari Tax")
3. The Agreement shall
apply also to any identical or substantially similar taxes which are imposed
after the date of signature of the Agreement in addition to, or in place of,
the existing taxes referred to in para 2. The competent authorities of the
Contracting States shall notify each other of significant changes which have
been made in their respective taxation laws.
Article 3
General definitions
1. For the purposes of
this Agreement, unless the context otherwise requires:
(a) the term "India" means the territory of India and
includes the territorial sea and airspace above it, as well as any other maritime
zone in which India has sovereign rights, other rights and jurisdiction,
according to the Indian law and in accordance with international law, including
the U.N. Convention on the Law of the Sea;
(b) the term "The State of Qatar" means the territory
of the State of Qatar as well as its territorial sea and its continental shelf
over which it exercise sovereign rights and jurisdiction according to the
Qatari Law and in accordance with International Laws;
(c) the term "person" includes an individual, a company,
a body of persons and any other entity which is treated as a taxable unit under
the taxation laws in force in the respective Contracting States;
(d) the term "company" means any body corporate or any
entity which is treated as a body corporate for tax purposes;
(e) the terms "enterprise of a Contracting State" and
"enterprise of the other Contracting State" mean respectively an
enterprise carried on by a resident of a Contracting State and an enterprise
carried on by a resident of the other Contracting State;
(f) the term "international traffic" means any
transport by a ship or aircraft operated by an enterprise which is a resident
of a Contracting State, except when the ship or aircraft is operated solely
between places in the other Contracting State;
(g) the term "competent authority" means--
(i) in India: the Central Government in the
Ministry of Finance (Department of Revenue) or their authorised representative;
(ii) in the State of Qatar: the Minister of
Finance, Economy and Commerce or his authorised representative;
(h) the term "national" means--
(i) any individual possessing the nationality of a Contracting
State;
(ii) any legal person, partnership or
association deriving its status as such from the laws in force in a Contracting
State;
(i) the term "fiscal year" means--
(i) in the case of India, "previous year" as defined
in the Income-tax Act, 1961 (43 of 1961);
(ii) in the
case of the State of Qatar "taxable year" as defined in Qatar
Income-tax Law;
(j) the term "tax" means Indian tax or Qatari tax, as
the context requires, but shall not include any amount which is payable in
respect of any default or omission in relation to the taxes to which this
Agreement applies or which represents a penalty or fine imposed relating to
those taxes;
(k) the terms "a Contracting State" and "the other
Contracting State" mean the Republic
of India or the State of Qatar as the context requires.
2. As regards the
application of the Agreement by a Contracting State any term not defined
therein shall, unless the context otherwise requires, have the meaning which it
has under the law of that State concerning the taxes to which the Agreement
applies.
Article 4
Resident
1. For the purposes of
this Agreement, the term "resident of a Contracting State" means any
person who, under the laws of that State, is liable to tax therein by reason of
his domicile, residence, place of management or any other criterion of a
similar nature. This term, however, does not include any person who is liable
to tax in that State in respect only of income from sources in that State.
2. Where by reason of the
provisions of paragraph 1 an individual is a resident of both 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 the has an habitual abode in both States or in neither of
them, he shall be deemed to be a resident of the State of which he is a
national;
(d) if he is a national of both States or of neither of them, the
competent authorities of the Contracting States shall settle the question by
mutual agreement.
3. Where by reason of the
provisions of paragraph 1 a person other than an individual is a resident of
both Contracting States, then it shall be deemed to be a resident of the State
in which its place of effective management is situated. If the State in which
its place of effective management is situated cannot be determined, then the
competent authorities of the Contracting States shall settle the question by
mutual agreement.
Article 5
Permanent establishment
1. For the purposes of
this Agreement, the term "permanent establishment" means a fixed
place of business through which the business of an enterprise is wholly or
partly carried on.
2. The term
"permanent establishment" includes especially--
(a) a place of management;
(b) a branch;
(c) an
office;
(d) a
factory;
(e) a
workshop;
(f) a mine,
an oil or gas well, a quarry or any other place of extraction of natural
resources;
(g) a sales
outlet;
(h) a
warehouse in relation to a person providing storage facilities for others; and
(i) a farm, plantation or other place where
agricultural, forestry, plantation or related activities are carried on.
3. A building site,
construction, assembly project or supervisory activities in connection
therewith constitute a permanent establishment only if such site, project or
activity last more than six months.
4. An enterprise shall be
deemed to have a permanent establishment in a Contracting State and to carry on
business through that permanent establishment if it provides services or
facilities in connection with, or supplies plant and machinery on hire used for
or to be used in the prospecting for, or extraction or exploitation of mineral
oils in that State.
5. Notwithstanding the
preceding provisions of this Article, the term "permanent
establishment" shall be deemed not to include--
(a) the use of facilities solely for the
purpose of storage or 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.
6. Notwithstanding the
provisions of paragraphs 1 and 2, where a person -- other than an agent of an
independent status to whom paragraph 8 applies -- is acting in a Contracting
State on behalf of an enterprise of the other Contracting State, that
enterprise shall be deemed to have a permanent establishment in the
first-mentioned Contracting State in respect of any activities which that
person undertakes for the enterprise, if such a person--
(a) has and habitually exercises in that State an authority to
conclude contracts in the name of the enterprise, unless the activities of such
person are limited to those mentioned in paragraph 5 which, if exercised
through a fixed place of business would not make this fixed place of business a
permanent establishment under the provisions of that 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.
7. Notwithstanding the
preceding provisions of this Article, an insurance enterprise of a Contracting
State shall, except in regard to re-insurance, be deemed to have a permanent
establishment in the other Contracting State if it collects premiums in the
territory of that other State or insures risks situated therein through a
person other than an agent of an independent status to whom paragraph 8
applies.
8. An enterprise shall not
be deemed to have a permanent establishment in a Contracting State merely
because it carries on business in that State through a broker, general
commission agent or any other agent of an independent status, provided that
such persons are acting in the ordinary course of their business. However, when
the activities of such an agent are devoted wholly or almost wholly on behalf
of that enterprise, he will not be considered an agent of an independent status
within the meaning of this paragraph.
9. The fact that a company
which is a resident of a Contracting State controls or is controlled by a
company which is a resident of the other Contracting State, or which carries on
business in that other State (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a permanent
establishment of the other.
Article 6
Income from immovable
property
1. Income derived by a
resident of a Contracting State from immovable property (including income from
agriculture or forestry) situated in the other Contracting State may also be
taxed in that other State.
2. The term
"immovable property" shall have the meaning which it has under the
law of the Contracting State in which the property in question is situated. The
term shall in any case include property accessory to immovable property,
livestock and equipment used in agriculture and forestry, rights to which the
provisions of general law respecting landed property apply, usufruct of
immovable property and rights to variable or fixed payments as consideration
for the working of, or the right to work, mineral deposits, sources and other
natural resources; ships, boats and aircraft shall not be regarded as immovable
property.
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 Contracting State shall be taxable only in that State unless
the enterprise carries on business in the other Contracting State through a
permanent establishment situated therein. If the enterprise carries on business
as aforesaid, the profits of the enterprise may also be taxed in the other
State but only so much of them as is attributable to that permanent
establishment.
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 deduction
expenses which are incurred for the purposes of the business of the permanent
establishment, including executive and general administrative expenses so
incurred, whether in the State in which the permanent establishment is situated
or elsewhere, in accordance with the provisions of and subject to the
limitations of the tax laws of that State.
4. No profits shall be
attributed to a permanent establishment by reason of the mere purchase by that
permanent establishment of goods or merchandise for the enterprise.
5. For the purposes of the
preceding paragraphs, the profits to be attributed to the permanent
establishment shall be determined by the same method year by year unless there
is good and sufficient reason to the contrary.
6. Where profits include
items of income which are dealt with separately in other Articles of this
Agreement, then the provisions of those Articles shall not be affected by the
provisions of this Article.
Article 8
Shipping and air transport
1. Profits derived by an
enterprise of a Contracting State from the operation of ships or aircraft in
international traffic shall be taxable only in that State.
2. In the case of the
State of Qatar for the purposes of the preceding paragraph the ships and
aircraft shall mean Gulf Air Company and United Arab Shipping Company so long
as the State of Qatar owns a share in these companies or any other air or sea
transport enterprise designated by the Government of the State of Qatar.
3. Profits derived by a
transportation enterprise which is a resident of a Contracting State from the
use, maintenance, or rental of containers (including trailers and other
equipment for the transport of containers) used for the transport of goods or
merchandise in international traffic shall be taxable only in that Contracting
State unless the containers are used solely within the other Contracting State.
4. For the purposes of
this Article, interest on funds connected with the operation of ships or
aircraft in international traffic shall be regarded as profits derived from the
operation of such ships or aircraft, and the provisions of Article 11 shall not
apply in relation to such interest.
5. 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 Contracting State participates directly or
indirectly in the management, control or capital of an enterprise of the other
Contracting State, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an 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 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 an appropriate adjustment to the amount of the tax charged therein on
those profits. In determining such adjustment, due regard shall be had to the other
provisions of this Agreement and the competent authorities of the Contracting
States shall, if necessary consult each other. However, in such circumstances a
Contracting State shall not adjust the profits of an enterprise after the
expiry of the time limits provided under its statute of limitations.
Article 10
Dividends
1. Dividends paid by a
company which is a resident of a Contracting State to a resident of the other
Contracting State may be taxed in that other State.
2. However, such dividends
may also be taxed in the Contracting State of which the company paying the
dividends is a resident and according to the laws of that State, but if the
recipient is the beneficial owner of the dividends the tax so charged shall not
exceed--
(a) 5 per cent of the gross amount of the dividends if the
beneficial owner is a company which owns at least ten per cent of the shares of
the company paying the dividend; and
(b) 10 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. 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
Contracting State and paid to a resident of the other Contracting State may be
taxed in that other State.
2. However, such interest
may also be taxed in the Contracting State in which it arises and according to
the laws of that State, but if the recipient is the beneficial owner of the
interest the tax so charged shall not exceed 10 per cent of the gross amount of
the interest.
3. Notwithstanding the
provisions of paragraph 2, interest arising in a Contracting State shall be
exempt from tax in that State provided it is derived and beneficially owned by:
(i) the Government, a political sub-division or a local
authority of the other Contracting State; or
(ii) the Central Bank of the other
Contracting State; or any other bank or governmental financial institutions/agencies
that 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. 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 Contracting State when the payer is that State itself, a
political sub-division, a local authority or a resident of that State. Where,
however, the person paying the interest, whether he is a resident of a
Contracting State or not, has in a Contracting State a permanent establishment
or a fixed base in connection with which the indebtedness on which the interest
is paid was incurred, and such interest is borne by such permanent
establishment or fixed base, then such interest shall be deemed to arise in the
Contracting State in which the permanent establishment or fixed base in
situated.
7. Where, by reason of a
special relationship between the payer and the beneficial owner or between both
of them and some other person, the amount of the interest, having regard to the
debt-claim for which it is paid, exceeds the amount which would have been
agreed upon by the payer and the beneficial owner in the absence of such
relationship, the provisions of this Article shall apply only to the
last-mentioned amount. In such case, the excess part of the payments shall
remain taxable according to the laws of each Contracting State, due regard
being had to the other provisions of this Agreement.
Article 12
Royalties and fees for
technical services
1. Royalties or fees for
technical services arising in a Contracting State and paid to a resident of the
other Contracting State may be taxed in that other State.
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
literary, artistic or scientific work including cinematograph films, and films
or tapes for television or radio broadcasting, any patent, trade mark, design
or model, plan, 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 Agreement.
4. The provisions of
paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties or
fees for technical services being a resident of a Contracting State, carries on
business in the other Contracting State in
which the royalties or fees for technical services arise, through a permanent
establishment situated therein, or performs in that other State independent
personal services from a fixed base situated therein, and the right or property
in respect of which the royalties or fees for technical services are paid in
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 Contracting State when the
payer is that State itself, a political sub-division, a local authority or a
resident of that State. Where, however, the person paying the royalties or fees
for technical services, whether he is a resident of a Contracting State or not,
has in a Contracting State a permanent establishment or a fixed base in
connection with which the liability to pay the royalties or fees for technical
services was incurred, and such royalties or fees for technical services are
borne by such permanent establishment or fixed base, then such royalties or
fees for technical services shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.
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 Agreement.
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-months period commencing or ending in
the fiscal year concerned, in that case, only so much of the income as is
derived from his activities performed in that other State may be taxed in that
other State.
2. The term
"professional services"
includes especially independent scientific, literary, artistic,
educational or teaching activities as well as the independent activities of
physicians, lawyers, engineers, architects, surgeons, dentists and accountants.
Article 15
Dependent personal
services
1. Subject to the
provisions of Articles 16, 18 and 19, salaries, wages and other similar
remuneration derived by a resident of a 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 there from may 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-months period commencing or ending in the fiscal year concerned, and
(b) the remuneration is paid by, or on
behalf of, an employer who is not a resident of the other State, and
(c) the remuneration is not borne by a
permanent establishment or a fixed base which the employer has in the other
State.
3. Notwithstanding the
preceding provisions of this Article, remuneration derived in respect of an
employment exercised aboard a ship or aircraft operated in international
traffic, by an enterprise of a Contracting State may be taxed in that State.
4. Notwithstanding the
preceding provisions of this Article, the two Contracting States shall exempt
salaries, wages, allowances and perquisites from tax in the case of employees
of a designated national air transport carrier of either Contracting State
provided that they are nationals of the other Contracting 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 sportspersons
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 sportsperson, from his personal activities as
such exercised in the other Contracting State, may be taxed in that other
State.
2. Where income in respect
of personal activities exercised by an entertainer or a sportsperson in his
capacity as such accrues not to the entertainer or sportsperson himself but to
another person, that income may, notwithstanding the provisions of Articles 7,
14 and 15, be taxed in the Contracting State in which the activities of the
entertainer or sportsperson are exercised.
3. The provisions of
paragraphs 1 and 2 shall not apply to income from activities performed in a
Contracting State by entertainers or sportspersons if the visit to that State
is substantially supported by public funds of one or both of the Contracting
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 sportsperson is a resident.
Article 18
Pensions
Subject to the provisions
of paragraph 2 of Article 19, pensions and other similar remuneration paid to a
resident of a Contracting State in consideration of past employment 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 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 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
A student or business apprentice who is or was a resident of a Contracting State immediately before visiting the other Contracting State and who is present in that other Contracting State solely for the purpose of his education or training shall be exempt from tax in that other State on--
(a) payments made to him by persons residing outside that other
State for the purposes of his maintenance, education or training; and
(b) remuneration from employment in that other State, in an
amount not exceeding US$ 1,000 or its equivalent amount during any fiscal year,
as the case may be,
provided that such employment is directly related to his studies or is
undertaken for the purpose of his maintenance.
Article 21
Professors, teachers and
research scholars
1. A professor or teacher who is or was a resident of the Contracting State immediately before visiting the other Contracting State for the purpose of teaching or engaging in research, or both, at a university, college, school or other approved institution in that other Contracting State shall be exempt from tax in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date of his arrival in that other State.
2. This Article shall not
apply to income from research, if such research is undertaken primarily for the
private benefit of a specific person or persons.
3. For the purposes of
this Article and Article 20, an individual shall be deemed to be a resident of
a 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 institution" means an institution which has
been approved in this regard by the competent authority of the concerned State.
Article 22
Other income
1. Items of income of a
resident of a Contracting State, wherever arising, not dealt with in the
foregoing Articles of this Agreement 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, if the recipient of such
income, being a resident of a Contracting State, carries on business in the
other Contracting State through a permanent establishment situated therein, or
performs in that other State independent personal services from a fixed base
situated therein, and the right or property in respect of which the income is
paid is effectively connected with such permanent establishment or fixed base.
In such case the provisions of Article 7 or Article 14, as the case may be,
shall apply.
3. Notwithstanding the
provisions of paragraphs 1 and 2, items of income of a resident of a
Contracting State not dealt with in the foregoing articles of this Agreement
and arising in the other Contracting State may also be taxed in that other
State.
Article 23
Mutual agreement procedure
1. Where a person
considers that the actions of one or both of the Contracting States result or
will result for him in taxation not in accordance with the provisions of this
Agreement, he may, irrespective of the remedies provided by the domestic law of
those States, present his case to the competent authority of the Contracting State
of which he is a resident or, if his case comes under paragraph 1 of Article
25, to that of the Contracting State of which he is a national. The case must
be presented within three years from the first notification of the action
resulting in taxation not in accordance with the provisions of the Agreement.
2. The competent authority
shall endeavour, if the objection appears to it to be justified and if it is
not itself able to arrive at a satisfactory solution, to resolve the case by
mutual agreement with the competent authority of the other Contracting State,
with a view to the avoidance of taxation which is not in accordance with the
Agreement. 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 the Agreement. They may also consult each other for the elimination
of double taxation in cases not provided for in the Agreement.
4. The competent
authorities of the Contracting States may communicate with each other directly
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 24
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 Agreement.
2. 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 Agreement, may
be taxed in the State of Qatar, India shall allow as a deduction from the tax
on the income of that resident an amount equal to the income-tax paid in the
State of Qatar whether directly or by deduction at source. Such amount 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
the State of Qatar.
3. In the case of the
State of Qatar double taxation shall be eliminated as follows--
Where a resident of the
State of Qatar derives income which, in accordance with the provisions of this
Agreement, may be taxed in India, the State of Qatar shall allow as a deduction
from the tax on the income of that resident an amount equal to the income-tax
paid in India. 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.
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.
Article 25
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 Agreement.
3. Nothing in this Article
shall be construed as obliging a Contracting State to grant to residents of the
other Contracting State any personal allowances, reliefs and reductions for
taxation purposes on account of civil status or family responsibilities which
it grants to its own nationals.
4. Nothing in this Article
shall be construed as imposing a legal obligation on a Contracting State to
extend to the residents of the other Contracting State the benefit of any
treatment preference or privilege which may be accorded to any other State or
its residents through agreements to which the first mentioned Contracting State
may be a party.
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 burden
some than the taxation and connected requirements to which other similar
enterprises of the first-mentioned State are or may be subjected.
6. Except where the
provisions of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article
12 apply, interest, royalties and other disbursement paid by an enterprise of a
Contracting State to a resident of the other Contracting State shall, for the
purpose of determining the taxable profits of such enterprise, be deductible
under the same conditions as if they had been paid to a resident of the
first-mentioned State. Similarly, any debts of an enterprise of a Contracting
State to a resident of the other Contracting State shall, for the purpose of
determining the taxable capital of such enterprise, be deductible under the
same conditions as if they had been contracted to a resident of the
first-mentioned State.
7. In this Article, the
term "taxation" means taxes which are the subject of this Agreement.
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
Agreement or of the domestic laws of the Contracting States concerning taxes
covered by the Agreement insofar as the taxation thereunder is not contrary to
the Agreement in particular for the prevention of fraud or evasion of such
taxes. The exchange of information is not restricted by Article 1. Any
information received by a Contracting State shall be treated as secret in the
same manner as information obtained under the domestic laws of that State and
shall be disclosed only to persons or authorities (including courts and
administrative bodies) involved in the assessment or collection of, the
enforcement or prosecution in respect of, or the determination of appeals in
relation to, the taxes covered by the Agreement. 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 is 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 27
Collection assistance
1. The Contracting States
undertake to lend assistance to each other in the collection of taxes to which
this Agreement relates, together with interest, costs, and civil penalties
relating to such taxes, referred to in this Article as a "revenue
claim".
2. Request for assistance
by the competent authority of a 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 Contracting State. However,
the first-mentioned Contracting State shall be entitled to reimbursement of
costs, if any, incurred in the course of rendering such assistance to the
extent mutually agreed between the competent authorities of the two States.
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 28
Diplomatic agents and
consular officers
Nothing in this Agreement
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 29
Entry into force
1. The Contracting States
shall notify each other in writing, through diplomatic channels, the completion
of the procedure required by the respective laws for the entry into force of
this Agreement.
2. This Agreement shall
enter into force thirty days after the receipt of the latter of the
notifications referred to in paragraph 1 of this Article.
3. The provisions of this
Agreement shall have effect in India and in the State of Qatar in respect of
income arising on or after the first day of the fiscal year next following the
calendar year in which the Agreement enters into force.
Article 30
Termination
This Agreement shall
remain in force until terminated by a Contracting State. Either Contracting
State may terminate the Agreement, through diplomatic channels, by giving
notice of termination at least six months before the end of any calendar year
after the expiration of five years from the date of entry into force of the
Agreement. In such event, the Agreement shall cease to have effect in India and
the State of Qatar, in respect of income arising on or after the first day of
the fiscal year next following the calendar year in which the notice of
termination is given.
IN WITNESS WHEREOF the
undersigned, being duly authorised thereto, have signed this Agreement.
SIGNED in two originals at New
Delhi this seventh day of April, 1999 in Arabic, Hindi and English languages,
all three texts being equally authentic. In case of divergence between the
texts the English text shall be the operative one.