Protocol - Protocol - Taipei

PROTOCOL India-Taipei Association in Taipei and Taipei Economic and Cultural Center in New Delhi on signing at New Delhi on the 12th day of July, 2011, the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, have agreed upon the following provisions which shall be an integral part of the Agreement: 1. It is understood that if the domestic law of a territory is more beneficial to a resident of the other territory than the provisions of this Agreement, then the provisions of the domestic law of the first-mentioned territory shall apply to the extent they are more beneficial to such a resident. 2. With respect to Article 2, in the territory referred to in paragraph 3( b ) of Article 2, it is understood that nothing in the Agreement will affect the imposition of the Land Value Increment Tax under Land Tax Act. 3. In respect of sub-paragraphs ( a ) and ( b ) of paragraph 4 of Article 5 on Permanent Establishment , it is understood that if the Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income between the Republic of India and the People s Republic of China is revised and the revised Agreement between the Republic of India and the People s Republic of China omits the words or delivery from these two sub-paragraphs, then, a corresponding revision of these two sub-paragraphs shall be automatically effected in this Agreement and the words or delivery shall stand omitted from these two sub-paragraphs, with effect from the date on which the revised Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion between the Republic of India and the People s Republic of China enters into force. 4. It is further understood that in respect of paragraph 5 of Article 5 on Permanent Establishment , if the Agreement for the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to taxes on income between the Republic of India and the People s Republic of China is revised and the revised Agreement between the Republic of India and the People s Republic of China includes provisions to the effect that a person other than an agent of in independent status to whom paragraph 7 applies acting in a Contracting State on behalf of an enterprise of the other Contracting State shall constitute a permanent establishment in the first-mentioned Contracting State in respect of activities he undertakes for the enterprise, if he 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, then a corresponding revision of paragraph 5 of Article 5 shall be automatically effected in this Agreement by inserting similar provision with effect from the date on which the revised Agreement between the Republic of India and the People s Republic of China enters into force. The exact formulation of the provisions to be inserted in this Agreement shall be finalized by exchange of letters. 5. With respect to Article 23, it is understood that the laws in force in either of the territories shall continue to govern the taxation of income in the respective territories except when express provision to the contrary is made in this Agreement. When income is subject to tax in both territories, relief from double taxation shall be given in accordance with the provisions of Article 23. 6. With respect to Article 23, it is further understood that the territory referred to in paragraph 3( a ) of Article 2 shall not allow as a deduction from the tax on the income of its resident, Land Value Increment Tax under Land Tax Act imposed in the territory referred to in paragraph 3( b ) of Article 2. In witness whereof, the undersigned, being duly authorized thereto, have signed this Protocol. DONE in duplicate at New Delhi this 12th day of July, 2011, each in the Hindi, Chinese and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.