TMI BlogModifying and Supplementing the Agreement between India and Japan for the Avoidance of Double TaxationX X X X Extracts X X X X X X X X Extracts X X X X ..... vernment of India and the Government of Japan, Desiring to modify and supplement the Agreement between India and Japan for the avoidance of double taxation in respect of taxes on income, signed at New Delhi on January 5, 1960, Have agreed as follows: Article Sub-paragraph (a) of paragraph (1) of Article I shall be amended as follows: 1. By deleting the expression " the Indian Income-tax Act, 1922 (11 of 1922) " and replacing it by the expression " the Income-tax Act, 1961 (43 of 1961) ", 2. By deleting the expression, " this the super tax ", and 3. By inserting the expression " and the surtax imposed under the Companies (Profits) Surtax Act, 1964 (7 of 1964) " immediately before the expression " (hereinafter referred to as ' Indian tax '). " Article II Sub-paragraph (i) of paragraph (1) of Article II shall be amended by inserting the following immediately after sub-paragraph (iii) thereof: " (iiia) An enterprise of one of the Contracting States shall not be deemed to ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n reduced or relieved in accordance with the special incentive measures designed to promote economic development in India, effective on the date of signature of the present Protocol or which may be introduced in future in the Indian tax laws in modification of or in addition to the existing measures, provided that an agreement is made between the two Governments in respect of the scope of the benefit accorded to the taxpayer by the said measures. " Article VII Protocol which constitutes an integral part of the Agreement between Japan and India for the Avoidance of Double Taxation in respect of taxes on income, signed at New Delhi on January 5, 1960, shall be abrogated. Article VIII 1. The present Protocol shall be ratified and the instruments of ratification shall be exchanged at Tokyo as soon as possible. 2. The present Protocol shall enter into force on the thirtieth day after the date of exchange of instruments of ratification and shall be applicable- (i) on the part of Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0 per cent. of the total sale price for the order. 3. With reference to sub-paragraph (i), (iiia) of paragraph (1) of Article II of the Agreement: for the purposes of the said paragraph, the provisions thereof shall not apply where the enterprise maintains any other fixed place of business in that other Contracting State for any purpose or purposes other than the purposes specified in the said paragraph. 4. With reference to paragraph (2) of Article XI of the Agreement: for the purposes of the said paragraph, where the resident of India is a company by which the surtax is payable, the credit to be allowed against Indian tax shall be allowed in the first instance against the income-tax payable by the company in India and, as to the balance, if any, against the surtax payable by it in India. I have further the honour to request Your Excellency to confirm the foregoing understanding on behalf of the Government of Japan. Accept, Your Excellency, the assurances of my highest consideration. (Sd.) P. C. SETHI, His Excellency Mr. Shinsaku Hogen, Ambassador Extraordinary and Plenipotentiary of Japan to India. New Delhi, April 8, 1969. Excellency, I have the hono ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he foregoing understanding is also the understanding of the Government of Japan. Accept, Your Excellency, the assurances of my highest consideration. (Sd.) SHINSAKU HOGEN, Ambassador Extraordinary and Plenipotentiary of Japan to India. His Excellency Mr. P. C. Sethi, Minister of State in the Ministry of Finance, Government of India, New Delhi. New Delhi, April 8, 1969. Excellency, I have the honour to refer to sub-paragraph (b) of paragraph (3) of Article XI of the Agreement between India and Japan for the avoidance of double taxation in respect of taxes on income, signed at New Delhi on January 5, 1960, as amended by the Protocol modifying and supplementing the Agreement which was signed today and to propose, on behalf of the Government of India, that the two Governments shall agree that the measures set forth in the following sections of the Income-tax Act, 1961 (43 of 1961) of India, effective on the date of signature of the aforesaid Protocol are " the special incentive measures designed to promote economic development in India, effective on the date of signature of present Protocol " referred to in the said sub-paragraph. (i) Section 10(4)-relating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... force on the date of the entry into force of the aforesaid Protocol and be applicable in respect of any assessment year commencing on or after the first day of April, 1967. Accept, Your Excellency, the assurances of my highest consideration. Sd. P. C. SETHI. His Excellency Mr. Shinsaku Hogen, Ambassador Extraordinary and Plenipotentiary of Japan to India. New Delhi, April 8, 1969. Excellency, I have the honour to acknowledge the receipt of Your Excellency's note of today's date which reads as follows: " I have the honour to refer to sub-paragraph (b) of paragraph (3) of article XI of the Agreement between India and Japan for the avoidance of double taxation in respect of taxes on income, signed at New Delhi on January 5, 1960, as amended by the Protocol modifying and supplementing the Agreement which was signed today and to propose, on behalf of the Government of India, that the two Governments shall agree that the measures set forth in the following sections of the Income-tax Act, 1961 (43 of 1961), of India, effective on the date of signature of the aforesaid Protocol are " the special incentive measures designed to promote economic development in India, effe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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