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Article 25 - Elimination of double taxation - Norway (Old - Effective upto 31-3-2012)Extract ARTICLE 25 - Elimination of double taxation - 1. The laws in force in either of the Contracting States shall continue to govern the taxation of income and capital in the respective Contracting States except where express provision to the contrary is made in this Convention. 2. Where a resident of India derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Norway, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in Norway, whether directly or by deduction; and as a deduction from the tax on the capital of that resident an amount equal to the capital tax paid in Norway. Such deduction in either case shall not, however, exceed that part of the income-tax or capital tax (as computed before the deduction is given) which is attributable, as the case may be, to the income or the capital which may be taxed in Norway. Further, where such resident is a company by which surtax is payable in India, the deduction in respect of income-tax paid in Norway shall be allowed in the first instance from income-tax payable by the company in India and as to the balance, if any, from surtax payable by it in India. 3. Where a resident of Norway derives income or owns capital which, in accordance with the provisions of the Convention, may be taxed in India, Norway shall, subject to the provisions of paragraphs (4), (5), (6) and (7), exempt such income or capital from tax. 4. Where a resident of Norway derives items of income which, in accordance with the provisions of articles 9, 11, 12, 13, 14, paragraphs (5), (17), (22), and (23) may be taxed in India, Norway shall allow as a deduction from the tax on the income of that person an amount equal to the tax paid in India. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from India. 5. For the purposes of the deduction referred to in paragraph (4), the term income-tax paid in India shall be deemed to include any amount which would have been payable as Indian tax under the law of India and in accordance with this Convention for any year but for an exemption from, or reduction of, tax granted for that year under : (a) sections 10(4), 10(4A), 10(4B), 10(6)(viia), 10(15)(iv), and 80L of the Income-tax Act, 1961 (43 of 1961), so, far as they were in force on, and have not been modified since, the date of the signature of this Convention, or have been modified only in minor respects so as not to affect their general character ; or (b) any other provisions which may be enacted after 11th November, 1983, granting a deduction in computing the taxable income or an exemption or reduction from tax which the competent authorities of the Contracting States agree to be for the purposes of the economic development of India, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character. This paragraph does not apply to article 17. 6. For the deduction indicated in paragraph (4), Indian tax on interest shall be considered as having been paid at a rate of not less than 15 per cent. 7. The provisions of paragraphs (5) and (6) of this article shall apply for the first 10 years for which this Convention is effective, but the competent authorities of the Contracting States may consult each other to determine whether this period shall be extended. 8. Where, under this Convention, a resident of a Contracting State is exempt from tax in that Contracting State in respect of income derived or capital owned in the other Contracting State, then the first-mentioned Contracting State may, in calculating tax on the remaining income or capital of that person, apply the rate of tax which would have been applicable if the income or capital exempted from tax in accordance with this Convention had not been so exempted.
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