Agreement between Government of India and the Government of the United States of America - 0223(E) - Income Tax

Agreement between Government of India and the Government of the United States of America Notification Number: 0223(E) Dated 18-04-1980 Whereas the Government of India and the Government of the United States of America have concluded an agreement through exchange of letters as set out in the Annexure hereto for the modification of the Agreement entered into by the said Governments, for the avoidance of double taxation of income of enterprises operating aircraft; Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that the provisions of the said Agreement shall be given effect to in the Union of India. ANNEXURE EMBASSY OF THE UNITED STATES OF AMERICA New Delhi , India December 27, 1976 Mr. S. R. Mehta, Chairman, Central Board of Direct Taxes, Ministry of Finance, North Block, New Delhi . Dear Mr. Mehta, On November 26, 1976, * we exchanged letters concerning a reciprocal airline tax exemption. In this connection the text of the U. S. note does not make a specific reference to the aircraft registration requirement contained in sections 872(b)(2) and 883(a)(2) of the U. S. Internal Revenue Code of 1954, as amended, though it had been intended that these requirements be covered by the note. For this reason we wish, by this letter, to confirm the U. S. statutory requirement that the aircraft, income from the operation of which is exempt from U. S. income-tax, be registered in India, which grants an equivalent exemption to U. S. Corporations and to U. S. citizens non-resident in India in respect of income from the operation of aircraft registered in the United States. I would be most grateful if you would kindly confirm this letter so as to meet the statutory requirement of the U. S. Internal Code. Sincerely, ( Sd. ) David T. Schneider Charge d' Affairs ad interim D. O. F. No. 501/2/74-FTD. Central Board of Direct Taxes. S. R. Mehta, Chairman. New Delhi , the 29th Dec. 1976 . Dear Mr. Schneider, This is to acknowledge receipt of your letter dated December 27, 1976, regarding the agreement between the Government of India and the Government of United States of America for the avoidance of double taxation of income of the international airlines of the two countries and to confirm the text of your letter which reads as follows:- " On November 26, 1976, we exchanged letters concerning a reciprocal airline tax exemption. In this connection the text of the U. S. note does not make a specific reference to the aircraft registration requirement contained in section 872(b)(2) and 883(a)(2) of the U. S. Internal Revenue Code of 1954, as amended, though it had been intended that these requirements be covered by the note. " For this reason we wish, by this letter, to confirm the U. S. statutory requirement that the aircraft, income from the operation of which is exempt from U. S. income-tax, be registered in India, which grants an equivalent exemption to U. S. corporations and to U. S. citizens non-resident in India in respect of income from the operation of aircraft registered in the United States. " I would be most grateful if you would kindly confirm this letter so as to meet the statutory requirement of the U. S. Internal Code. " Yours sincerely, ( Sd. ) S. R. Mehta H. E. Mr. David T. Schneider, Charge d' Affairs ad interim, Embassy of the U. S. A. New Delhi . * See [1977] 106 ITR ( St. ) 5. File Number: 501/2/74-FTD