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Article 31 - Termination - BulgariaExtract Article 31 : Termination - This Convention shall remain in force indefinitely, but either of the Contracting States may, on or before the thirtieth day of June, in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give to the other Contracting State through diplomatic channels, written notice of termination. In such event, the Convention shall cease to have effect : (a) in India : (i) in respect of income arising in any previous year beginning on or after the first day of April, next following the calendar year in which the notice of termination is given; and (ii) in respect of capital which is held on the last day of any previous year beginning on or after the first day of April next following the calendar year in which the notice of termination is given. (b) In Bulgaria : (i) in respect of income arising in any year of income beginning on or after the first day of January, next following the calendar year in which the notice of termination is given; and (ii) in respect of capital which is held on the last day of any year of income beginning on or after the first day of January, next following the calendar year in which the notice of termination is given. IN WITNESS WHEREOF the undersigned, being duly authorised thereto have signed the present Convention. Done in duplicate at Sofia on this 26th day of May of one thousand nine hundred and ninety-four in Hindi, Bulgarian and English languages, all the texts being equally authentic. In case of divergence between any of the two texts, the English text shall prevail. PROTOCOL At the signing today of the Convention between the Government of the Republic of India and the Government of the Republic of Bulgaria for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed upon the following provisions which shall form an integral part of the Convention : 1. To Article 7 (Business Profits) : (a) In respect of paragraph 1, the profits attributable to a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall include profits directly or indirectly attributable to the permanent establishment and in particular shall include profits of the enterprise from the sales in that other State of goods or merchandise of the same or similar kind as those sold through the permanent establishment. (b) In respect of paragraph 3, it is agreed that while determining the profits of a permanent establishment, no deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents, know-how or other rights, or by way of commission or other charges, for specific services performed or for management or, except in the case of a banking enterprise, by way of interest on money lent to the permanent establishment. Likewise, no account shall be taken in the determination of the profits of a permanent establishment, for amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any other of its offices, by way of royalties, fees or other similar payments in return for the use of patents, know-how or other rights, or by way of commission or other charges, for specific services performed or for the management or, except in the case of a banking enterprise, by way of interest on money lent to the head office of the enterprise or any of its other offices. 2. To Article 12 (Interest) : In respect of paragraph 3(a)(ii), it is understood that the Central Bank in the case of India means the Reserve Bank of India. 3. To Article 26 (Non-discrimination) : In respect of paragraph 3, it is understood that a Contracting State may not exercise in respect of a resident of the other Contracting State a higher or more burdensome taxation than the taxation which that State would exercise in respect of a resident of a third State. IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed the present Protocol. DONE in duplicate at Sofia on this 26th day of May of one thousand nine hundred and ninety-four in the Hindi, Bulgarian and English languages, all the texts being equally authentic. In case of divergence between any of the two texts, the English text shall prevail.
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