9911796707
TMI BlogAgreement for avoidance of double taxation with Pakistan - Whether operative for assessment year 1972-73 and subsequent assessment yearsX X X X Extracts X X X X X X X X Extracts X X X X ..... r 1972-73 and the subsequent assessment years in relation to Pakistan as well as to Bangladesh. For these assessment years, a person "resident" in India and liable to tax under the tax laws of India as well as Pakistan or Bangladesh will be entitled to relief from double taxation in India only in accordance with the provisions of section 91. 2. In regard to assessment years prior to the assessment year 1972-73 (including reopened assessments), the provisions of the aforesaid double taxation agreement, with Pakistan would continue to apply in relation to the present Pakistan as well as the erstwhile territory of East Pakistan now known as Bangladesh. Circular : No. 127 [F. No. 501/2/72-FDT], dated 10-1-1974. ANNEX - NOTIFICATION NO. 28, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unaltered in both the Dominions, and shall apply to the following assessments made under the said Acts in the two Dominions: (i) Assessments made on or after the 15th day of August, 1947, for the assessment year 1947-48 (or for the corresponding chargeable accounting period). (ii) All other assessments made on or after the 1st day of April, 1948 excepting excess profits tax assessments for chargeable accounting periods for which provisional assessments have been made before the lst April, 1948. ARTICLE III - Save under the provisions of section 34 of the Indian Income-tax Act, 1922 and section 15 of the Excess Profits Tax Act, 1940, as adapted neither Dominion shall charge to tax any income of a person whose assessment (whether regula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the total income of the assessee in each Dominion. (b) Where at the time of assessment in one Dominion, the tax payable on the total income in the other Dominion is not known, the first Dominion shall make a demand without allowing the abatement, but shall hold in abeyance for a period of one year (or such longer period as may be allowed by the Income-tax Officer in his discretion) the collection of a portion of the demand equal to the estimated abatement. If the assessee produces a certificate of assessment in the other Dominion within the period of one year or any longer period allowed by the Income-tax Officer, the uncollected portion of the demand will be adjusted against the abatement allowable under this Agreement; if no such ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dominion is entitled to charge under the Agreement Remarks 1 2 3 4 1. (a) Salaries paid by employers other than Government. 100 per cent by the Dominion in which the salary is earned by service. Nil by the other. (b) Salaries paid by Government. 100 per cent by the Dominion which pays the salary Nil by the other. 2. (a) Interest on Government securities. 100 per cent by the Dominion where the securities are enfaced for payment of interest and principal. Nil by the other. (b) Interest on securities other than Government securities. 100 per cent by the Dominion in which the investment is used. Nil by the other. 3. Income from property. 100 per cent by the Dominion in which the property is situated. Nil by the other. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sfer takes place. Nil by the other. 7. (a) Goods purchased in one Dominion and sold in the other in the same condition without any manufacturing process so as to change the identity of the goods. 10 per cent of the profits by the Dominion in which goods are purchased provided there is a branch or regular purchasing agency in the Dominion. 90 per cent by the other. If there is no regular purchasing agency, 100 per cent shall be chargeable by the Dominion in which goods are sold and nil by the other. (b) Goods, merchandise or commodities manufactured in one Dominion and delivered by the manufacturer to buyer in the same Dominion. 100 per cent by the Dominion in which the goods are manufactured. Nil by the other. (c) Goods, mercha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent of the profits by the Dominion in which minerals are extracted.
50 per cent of the profits by the Dominion in which goods are sold.
Relief in respect of any excess
income-tax deemed to be paid by the share-holder shall be allowed by each
Dominion in proportion to the profits of the company charge-able by each under this Agree-ment.
8. Dividends
By each Dominion in proportion to the profits of the company chargeable by each Dominion under this Agreement.
(As in preceding column.)
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9. Any income derived from a source or category of transactions not mentioned in any of the foregoing items of this Schedule.
100 per cent by the Dominion in which the income actually accrues or arises.
Nil by the other.
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