Date of coming into force of India -Kenya convention on avoidance of double taxation. - Income Tax - 1836/1990

INSTRUCTION NO. 1836/1990 Dated: January 22, 1990 Reference is invited to the Board's Circular letter No. 501/3/72-FID dated 20th August, 1985 regarding Notification No.GSR 665 (E) published in the Gazette of India- Extraordinary-Part-II, Section 3 sub-section (i) dated the 20th August, 1985 relating to the Convention between India and Kenya for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income. In that Circular it was mentioned that the Convention between the two countries entered into on the 14th June, 1985 and as per Article 30 thereof had taken effect in India in respect of income assessable for any assessment year commencing on or after 1st April, 1985. This was indicated on the basis of a note date 14th June, 1985 from the Kenyan Authorities that they had completed the procedure as required under Article 30 of the Convention. The Kenyan Authorities however revoked their note dated 14th June, 1985 informing that it had been despatched inadvertently and rather prematurely. We have not succeeded in getting the Kenyan authorities to rescind their stand. 2. The matter was thereafter taken up with the Government of Kenya, who have now informed that the said Convention was notified on 10th March, 1989 as per their laws. In view of the above the convention has entered into force on the 10th March 1989 and shall have effect in India in respect of income assessable for any assessment year commencing on or after 1st April, 1989. A revised Notification in this regard is being issued separately. 3. As a result of the earlier Notification and circular letter dated 20th August, 1985, Kenyan enterprises might have been allowed tax benefits in India under the Convention for the assessment years 1985-86 to 1988-89. You are therefore, requested to direct the concerned officers working in your Region to take immediate remedial action to withdraw the relief already granted. Details of action taken in this regard may please be intimated to the Board at the earliest latest by the 1st week of April, 1990.