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Article 30 - Termination - CanadaExtract Article 30 : Termination -This Agreement shall continue in effect indefinitely but either Contracting State may, on or before June 30 in any calendar year after expiry of five years from the year in which it enters into force, give notice of termination to the other Contracting State and in such event, the Agreement shall cease to have effect : (a) in Canada : (i) in respect of tax withheld at the source on amounts paid or credited to non-residents on or after the first day of January in the next following calendar year; and (ii) in respect of other Canadian tax for taxation years beginning on or after the first day of January in the next following calendar year; (b) in India : (i) in respect of income arising in any taxable year beginning on or after the first day of April in the next following calendar year; and (ii) in respect of capital which is held at the end of any fiscal year beginning on or after the first day of April in the next following calendar year. In witness whereof the undersigned, duly authorised to that effect, have signed this Agreement. Done in duplicate at New Delhi this 11th day of January, 1996 in the English, French and Hindi languages, each version being equally authentic. Sd/- For the Government of the Republic of India Sd/- For the Government of Canada Protocol At the signing of the Agreement between the Government of the Republic of India and the Government of Canada 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 be an integral part of the Agreement : 1. It is understood that the term fiscal year in relation to Indian tax, means previous year as defined in the Income-tax Act, 1961. 2. It is understood that the provisions of paragraph 1 of Article 6, also apply to income, other than capital gains, derived from the alienation of immovable property. 3. It is understood that where an enterprise of a Contracting State has a permanent establishment in the other Contracting State in accordance with the provisions of paragraph 2(j), 2(k), or 2(l) of Article 5, and the time period referred to in that paragraph extends over two taxable years, a permanent establishment shall not be deemed to exist in a year, if any, in which the use, site, project or activity, as the case may be, continues for a period or periods aggregating less than 30 days in that taxable year. A permanent establishment will exist in the other taxable year, and the enterprise will be subject to tax in that other Contracting State in accordance with the provisions of Article 7, but only on income arising during that other taxable year. 4. With reference to Article 13, it is understood that the term alienation includes a transfer within the meaning of Indian taxation laws. 5. It is understood that nothing in the Agreement shall be construed as preventing a Contracting State from imposing a tax on amounts included in the income of a resident of that Contracting State with respect to a partnership, trust, or controlled foreign affiliate, in which he has an interest. In witness whereof the undersigned, duly authorised to that effect, have signed this Protocol. Done in duplicate at New Delhi, this 11th day of January, 1996 in the English, French and Hindi languages each version being equally authentic. Sd/- For the Government of the Republic of India Sd/- For the Government of Canada
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