TMI BlogConvention between the Government of the Republic of India and the Government of the Republic of Trinidad and Tobago u/s 90X X X X Extracts X X X X X X X X Extracts X X X X ..... of India. ANNEXURE CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE REPUBLIC OF TRINIDAD AND TOBAGO FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of India and the Government of the Republic of Trinidad and Tobago desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and with a view to promoting economic co-operation between the two countries have agreed as follows : ARTICLE 1 Personal Scope This Convention shall apply to persons who are residents of one or both of the Contracting States. ARTICLE 2 Taxes Covered 1. This Convention shall apply to taxes on income imposed on behalf of a Contracting State or of its political sub-divisions or local authorities irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; ( g ) the term "international traffic" means any transport by ship or aircraft operated by an enterprise which is a resident of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; ( h ) the term "competent authority" means: ( i ) in the case of Trinidad and Tobago, the Minister to whom the responsibility for Finance is assigned or his authorised representative; ( ii ) in the case of India, the Central Government in the Ministry of Finance (Department of Revenue) or their authorised representative; ( i ) the term "national" means: ( i ) any individual possessing the nationality of a Contracting State; ( ii ) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State; ( j ) the term "fiscal year" means : ( i ) in the case of Trinidad and Tobago, the "year of income" as defined in section 2(1) of the Income-tax Act, Chapter 75: 01 ; ( ii ) in the case of India, "previous year" as define ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Establishment 1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: ( a ) a place of management; ( b ) a branch; ( c ) an office ; ( d ) a factory; ( e ) a workshop; ( f ) a warehouse in relation to a person providing storage facilities for others: ( g ) a sales outlet, ( h ) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; ( i ) a drilling rig or ship used for, or in connection with, the exploration or development of natural resources; ( j ) a dredging project; ( k ) a farm, plantation or other place where agricultural, forestry, plantation or related activities are carried on; and (I) a building site or construction or assembly project or supervisory activities in connection therewith only if such site, project or activity last more than nine months. 3. Notwithstanding the preceding provisions of this Article the term "permanent establishment" shall be deemed not to include: ( a ) the use of facilities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 6 applies. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such person is acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other. ARTICLE 6 Income from Immovable P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere, in accordance with the provisions of and subject to the limitations of the laws of that State. 4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year, unless there is good and sufficient reason to the contrary. 6. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. ARTICLE 8 Shipping and Air Transport 1. Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State. 2. Profits derived by a transportation enterprise which is a resident of a Contracting State from the use, maintenance, or rental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany which is a resident of a Contracting State to a resident of the other Contracting State may also be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 10 per cent of the gross amount of the dividends. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 3. The term "dividends" as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial Development Bank of India, the Export Import Bank of India, the National Housing Bank, the Small Industries Development Bank of India and the Industrial Credit and Investment Corporation of India (ICICI); or ( iii ) any other institution of agency as may be mutually agreed upon between the two contracting States. 4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, but shall not include any item which is treated as a distribution under the provisions of Article 10 of this Convention. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans of reproduction for use in connection with television or radio broadcasting, any patent, trade-mark, design or model, plan, know-how, computer software programme, secret formula or process, or any industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience; ( b ) the term "fees for technical services" means payment of any kind in consideration for the rendering of any managerial, technical or consultancy services including the provision of services by technical or other personnel but does not include payments for services mentioned in Articles 14 and 15 of this Convention. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties or fees for technical services being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or fees for technical services arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties or fees for technical services are paid is effectively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships, aircraft shall be taxable only in that State. 4. Gains from the alienation of shares of the capital stock of a company the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that State. 5. Gains from the alienation of shares other than those mentioned in paragraph 4 in a company which is a resident of a Contracting State may be taxed in that State. 6. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3, 4 and 5, shall be taxable only in the Contracting State of which the alienator is resident. ARTICLE 14 Independent Personal Services 1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed in the other Contracting State : ( a ) if he has a fixed base regularly available to him in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erprise of a Contracting State may be taxed in that State. ARTICLE 16 Directors' Fees Directors' fees and other similar payments derived by a resident of a Contracting State in his or her capacity as a member of the Board of Directors of a company which is a resident of the other Contracting State may also be taxed in that other State. ARTICLE 17 Artistes and Sportspersons 1. Notwithstanding the provisions of Articles 14 and 15 income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from his personal activities as such exercised in the other Contracting State, may also be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such accrues not to the entertainer or sportsperson himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15 be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised. 3. The provisions of paragraphs 1 and 2, shall not apply to income from activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e other Contracting State and who is present in that other Contracting State solely for the purpose of his education or training shall, besides grants, loans and scholarships, be exempt from tax in that other State on : ( a ) payments made to him by persons residing outside that other State for the purposes of his maintenance, education or training; and ( b ) remuneration from employment in that other State for an amount not exceeding the amount which is exempt from tax under the laws of that other Contracting State for any fiscal year, provided that such employment is directly related to his studies or is undertaken for the purpose of his maintenance. 2. The benefit of this Article shall extend only for such period of time as may be reasonable or customarily required to complete the education or training undertaken, but in no event shall any individual have the benefits of this Article. for more than seven consecutive years from the date of his first arrival in that other Contracting State. ARTICLE 21 Professors, Teachers and Research Scholars 1. A professor, teacher or research scholar who is or was a resident of the Contracting State immediately before visiting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te may also be taxed in that other State. ARTICLE 23 Elimination of Double Taxation 1. The laws in force in either of the Contracting State will continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Convention. 2. In the case of Trinidad and Tobago, double taxation shall be eliminated as follows : Where a resident of Trinidad and Tobago derives income which, in accordance with the provisions of this Convention, may be taxed in India, Trinidad and Tobago shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in India, whether directly or by deduction at source. Such deduction shall not, however, exceed that part of the income-tax as computed before the deduction is given, which is attributable to the income which may be taxed in India. 3. In the case of India, double taxation shall be eliminated as follows: Where a resident of India derives income which, in accordance with the provisions of this Convention, may be taxed in Trinidad and Tobago, India shall allow as a deduction from the tax on the income of that resident an amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aph 6 of Article 12 apply, interest, royalties and fees for technical services and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shah, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. 5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly by one or more residents, of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more, burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected. 6. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description. ARTICLE 25 Mutual Agreement Procedure 1. Where a person considers that the action of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this conven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by this Convention. Such persons or authorities shall use the information. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public Court proceedings or in judicial decision. 2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation : ( a ) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; ( b ) to supply information or documents which are not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State : ( c ) to supply information or documents which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy. ARTICLE 27 Diplomatic Agents and Consular Officers Nothing in this Convention shall affect the fiscal pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... next following that in which this Convention enters into force; and ( b ) in India, in respect of income derived in any fiscal year beginning on or after the first day of April next following the calendar year in which this Convention enters into force. ARTICLE 30 Termination This Convention shall remain in force indefinitely until terminated by the Contracting State. Either Contracting State may terminate this Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year beginning after the expiration of five years from the date of entry into force of this Convention. In such event, this Convention shall cease to have effect : ( a ) In Trinidad and Tobago : ( i ) in respect of taxes withheld at source, to income paid or credited on or after first January in the calendar year next following that in which the notice is given; ( ii ) in respect of other taxes on income to income in any taxable year beginning on or after first January in the calendar year next following that in which the notice is given; ( b ) in India, in respect of income derived in any previous year on or after the first Apri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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