Agreement between the
Government of the Republic of India and the Government of the People's
Democratic Republic of Yemen for the avoidance of double taxation of income
derived from international air transport
Notification No. 8070 [F.
No. 501/1/87-FTD], dated 12 August, 1988
G.S.R. 857(E).--Whereas
the annexed Agreement between the Government of Republic of India and the
Government of the People's Democratic Republic of Yemen for the avoidance of
double taxation of income derived from international air transport has entered
into force on 5-8-1988, the date of signature thereon by the Contracting
States, as required by Article 5 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.
ARTICLE 1: Taxes covered.--1.
The existing taxes to which this Agreement shall apply are:
(a) in the case of People's Democratic Republic of Yemen, the
income-tax including surcharge thereon (hereinafter referred to as "Yemeni
tax");
(b) in the case of India:
(i) the income-tax including any surcharge thereon;
(ii) the
surtax
(hereinafter referred to
as "Indian 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
taxes referred to in paragraph 1 of this article. The competent authorities of
the Contracting States shall notify each other of any substantial changes which
are made in their respective taxation laws.
ARTICLE 2:
Definitions.--1. In this Agreement, unless the context otherwise requires.--
(a) the terms "a Contracting State" and "the other
Contracting State" mean "People's Democratic Republic of Yemen"
or "India", as the context requires;
(b) the term "tax" means "Yemeni tax" or
"Indian tax" as the context requires;
(c) the term "enterprise of a Contracting State" means
"airlines designated by each Contracting State";
(d) the term "international air traffic" means any
transport by an aircraft operated by an enterprise of a Contracting State,
except when the aircraft is operated solely between places in the other
Contracting State;
(e) the term "operation or aircraft" means the
transportation by air of passengers, livestock, goods or mail carried on by the
owners or lessees or charterers of aircraft, including the sale of tickets for
such transportation, the incidental lease of aircraft including on a charter
basis and any other activity directly connected with such transportation;
(f) the term "competent authority" means:
(i) in the case of the People's Democratic
Republic of Yemen, the Ministry of Finance or its authorised representative;
(ii) in the case of India, the Central
Government in the Department of Revenue or its authorised representative.
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 which are subject to this Agreement.
ARTICLE 3: Avoidance of
double taxation.--1. Income derived by an enterprise of a Contracting State
from the operation of aircraft in international air traffic shall be exempted
from tax in the other Contracting State.
2. The provisions of
paragraph 1 shall also apply to income from the participation in a pool, a
joint airline business or an international operating agency.
3. For the purpose of
paragraphs 1 and 2, interest on funds connected with the operation of aircraft
in international air traffic shall be regarded as income derived from the
operation of such aircraft.
ARTICLE 4: Mutual
agreement procedure.--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.
ARTICLE 5: Entry into
force.--Each of the Contracting States shall notify to the other the completion
of the procedures required by its law for the bringing into force of this
Agreement. The Agreement shall enter into force on the date of signature
thereon by the Contracting States, and shall thereupon have effect in respect
of income arising in any fiscal year commencing on or after the 1st day of
January, 1983.
ARTICLE 6:
Termination.--This Agreement shall continue in effect indefinitely but either
Contracting State may, on or before the thirtieth day of June in any calendar
year after the year 1993 give notice of termination to the other Contracting
State and in such event this Agreement shall cease to be effective in respect
of income arising in any fiscal year commencing on or after the 1st day of
January next following the calendar year in which the notice is given.
In witness whereof the
undersigned, duly authorised thereto, have signed the present Agreement.
Done at New Delhi this
fifth day of August, one thousand nine hundred and eighty-eight in two
originals in the Hindi, Arabic and English languages, all texts being equally
authentic.
In the case of divergence
amongst the three texts, the English text shall be the operative one.
For the Government of For
the Government of the People's
Republic of India Democratic
Republic of Yemen
Sd/- Sd/-
(P.K. Appachoo) (H.E.
Mohamed Bin Mohamed Al-Hubeishi)
Joint Secretary to the
Government of India Ambassador Extraordinary and Plenipotentiary of the
People's. Democratic Republic of Yemen
Agreement between the
Government of the Republic of India and the Government of Yemen Arab Republic
for the avoidance of double taxation of income derived from international air
transport
Notification No. 7084
[F.No. 501/4/83-FTD], dated 1 January, 1987
G.S.R. 2(E).--Whereas the
annexed Agreement between the Government of the Republic of India and the
Government of Yemen Arab Republic for the avoidance of double taxation of
income derived from international air transport has entered into force on
30-12-1986, the date of the signature thereon by the Contracting States, as
required by Article 5 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.
The Government of the
Republic of India and the Government of Yemen Arab Republic desiring to
conclude an agreement for the avoidance of double taxation of income derived
from international air transport have agreed as follows
ARTICLE 1: Taxes
covered.--1. The existing taxes to which this Agreement shall apply are:
(a) in the case of Yemen Arab Republic, the income-tax including
surcharge thereon imposed under the Law No. 11-1973 (hereinafter referred to as
"Yemeni tax");
(b) in the case 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) (hereinafter referred to as "Indian
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
taxes referred to in paragraph 1 of this article. The competent authorities of
the Contracting States shall notify each other of any substantial changes which
are made in their respective taxation laws.
ARTICLE 2:
Definitions.--1. In this Agreement, unless the context otherwise requires.--
(a) the terms "a Contracting
State" and "the other Contracting State" mean "Yemen Arab
Republic" or "India", as the context requires;
(b) the term
"tax" means "Yemeni tax" or "Indian tax" as the
context requires;
(c) the term "enterprise of a
Contracting State" means an airline designated by each Contracting State;
(d) the term "international air
traffic" means any transport by an aircraft operated by an enterprise of a
Contracting State, except when the aircraft is operated solely between places
in the other Contracting State;
(e) the expression "operation of
aircraft" means the business of carriage by air of passengers, livestock,
goods or mail carried on by the owners or lessees or charterers of aircraft,
including the sale of tickets for such transportation on behalf of other
enterprises, the incidental lease of aircraft and any other activity directly
connected with such transportation.
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 which are subject of this Agreement.
ARTICLE 3: Avoidance of
Double Taxation.--1. Profits derived by an enterprise of a Contracting State
from the operation of aircraft in international traffic shall be exempted from
tax in the other Contracting State.
2. The provisions of
paragraph 1 shall also apply to profits from the participation in a pool, a
joint business or an international operating agency.
3. For the purpose of
paragraphs 1 and 2, interest on funds connected with the operation of aircraft
in international traffic shall be regarded as profits derived from the
operation of such aircraft.
ARTICLE 4: Residual
provisions.--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 5: Entry into force.--Each
State shall notify to the other the completion of the procedures required by
its law for the bringing into force of this Agreement. The Agreement shall
enter into force on the date of the signature thereon by the Contracting
States. It shall, however, apply in relation to the income of the enterprise of
each Contracting State from the date of commencement of the operation of that
enterprise in the other Contracting State.
ARTICLE 6:
Termination.--This Agreement shall
continue in effect indefinitely but either Contracting State may, on or
before the thirtieth day of June in any calendar year after the year 1991 give
notice of termination to the other Contracting State and in such event this
Agreement shall cease to be effective:
(a) In Yemen Arab Republic, in respect of any year of tax
commencing on or after the 1st day of January of the second calendar year
following the year in which the notice is given;
(b) In India, in respect of any assessment year commencing on or
after the 1st day of April of the second calendar year following the year in
which the notice is given.
In witness whereof the
undersigned, duly authorised thereto, have signed the present Agreement.
Done at New Delhi this
thirtieth day of December, one thousand nine hundred and eighty-six in two
originals in the Hindi, Arabic and English languages, all texts being equally
authentic. In the case of divergence amongst the three texts, the English text
shall be the operative one.
For the Government of the
Republic of India For the Government
of Yemen Arab Republic
(C. K. Tikku )
Chairman, Central Board of
Direct Taxes and Sd/-
Ex-officio Additional (Naset
Aalway Alsaman)
Secretary to the Assistant
Deputy Minister
Government of India Ministry of Finance