TMI BlogDouble Taxation Avidence Agreement (DTAA) among SAARC Members.X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of the said Agreement shall be given effect to in the Union of India with effect from the 1st day of April, 2011. FTD-II [F.NO.500/96/97-FTD-II] Annexure SAARC Limited Multilateral Agreement on Avoidance of Double Taxation and Mutual Administrative Assistance in Tax Matters PREAMBLE The Governments of the SAARC (South Asian Association for Regional Cooperation) Member States comprising the People s Republic of Bangladesh, the Kingdom of Bhutan, the Republic of India, the Republic of Maldives, the Kingdom of Nepal, the Islamic Republic of Pakistan and the Democratic Socialist Republic of Sri Lanka; Desiring to conclude an Agreement on Avoidance of Double Taxation and Mutual Administrative Assistance in tax matters with a view to promoting economic cooperation amongst the SAARC Member States Have agreed as follows : ARTICLE 1 GENERAL DEFINITIONS 1. For the purposes of this Agreement, unless the context otherwise requires : (a) the term Member State means one of the States as per Schedule I; (b) the term person includes an individual, a company, a body of persons and any other entity which is treated as a ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s liable to tax in that Member State in respect only of income from sources in that Member State. 2. Where, by reason of the provisions of paragraph 1, an individual is a resident of more than one Member State, his/her status shall be determined as follows : (a) he/she shall be deemed to be a resident only of the Member State in which he/she has a permanent home available to him/her; if he/she has a permanent home available to him/her in more than one Member State, he/she shall be deemed to be a resident only of the Member State with which his/her personal and economic relations are closer (centre of vital interests); (b) if the Member State in which he/she has his/her centre of vital interests cannot be determined, or if he/she has not a permanent home available to him/her in any Member State, he/she shall be deemed to be a resident only of the Member State in which he/she has an habitual abode; (c) if he/she has an habitual abode in more than one Member State or in neither of them, he/she shall be deemed to be a resident only of the Member State of which he/she is a national; (d) if he/she is a national of more than one Member State or of none of them, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to each other in the collection of revenue claims. The Competent Authorities of the Member States may, by mutual agreement, settle the mode of application of this Article. 2. The term revenue claim as used in this Article means an amount owed in respect of taxes covered by the Agreement together with interest, penalties and costs of collection or conservancy related to such amount. 3. When a revenue claim of a Member State is enforceable under the laws of that Member State and is owed by a person who, at that time, cannot, under the laws of that Member State, prevent its collection, that revenue claim shall, at the request of the Competent Authority of that Member State, be accepted for purposes of collection by the Competent Authority of the other Member State, and that revenue claim shall be collected by that other Member State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other Member State. 4. When a revenue claim of a Member State is a claim in respect of which that Member State may, under its law, take measures of conservancy with a view to ensure i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate may, under its laws, take measures of conservancy with a view to ensure its collection. The Competent Authority of the first-mentioned Member State shall promptly notify the Competent Authority of the other Member State of that fact and, at the option of the other Member State, the first-mentioned Member State shall either suspend or withdraw its request. 9. In no case shall the provisions of this Article be construed so as to impose on a Member State the obligation : (a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Member State; (b) to carry out measures which would be contrary to public policy (ordre public); (c) to provide assistance if the other Member State has not pursued all reasonable measures of collection or conservancy, as the case may be, available under its laws or administrative practices; (d) to provide assistance in those cases where the administrative burden for that Member State is clearly disproportionate to the benefit to be derived by the other Member State. ARTICLE 7 SERVICE OF DOCUMENTS 1. At the request of the applicant Member State the requested ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or training, be exempt from tax in that other Member State on remuneration which he/she derives from an employment which he/she exercises in the other Member State if the employment is directly related to his/her studies. 2. The exemption available under paragraph 1 above in respect of remuneration from employment shall not exceed an amount equal to US$ 3000 per annum. 3. The benefits 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 six consecutive years from the date of his/her first arrival in that other Member State. ARTICLE 10 TRAINING 1. The Member States shall endeavour to hold and organise training programmes, seminars and workshops for the tax administrators with the objective of : (i) providing a common forum for senior tax administrators to meet and discuss problems of common concern; (ii) enhancing the technical and administrative knowledge and skills of tax administrators; and (iii) evolving strategies to combat common tax problems like tax avoida ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bhutan (a) in respect of taxes withheld at source, in respect of amounts paid or credited on or after the first day of July next following the date upon which the Agreement enters into force; (b) with regard to other taxes, in respect of tax years beginning on or after the first day of July next following the date upon which the Agreement enters into force; (iii) In India , in respect of income derived in any fiscal year on or after the first day of April next following the date upon which the Agreement enters into force; (iv) In Maldives in respect of income derived in any fiscal year on or after the first day of January next following the date upon which the Agreement enters into force; (v) In Nepal in respect of income arising in any year of income beginning on or after the first day of Nepalese fiscal year starting mid-July next following the date upon which the Agreement enters into force; (vi) In Pakistan : (a) in respect of taxes withheld at source, in respect of amounts paid or credited on or after the first day of July next following the date upon which the Agreement enters into force; (b) with regard to other taxe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned this Agreement. DONE at Dhaka, Bangladesh, On This The Thirteenth Day of November Two Thousand Five, In Nine Originals In English Language, All Texts Being Equally Authentic. Protocol On formalization, this SAARC Limited Multilateral Agreement on Avoidance of Double Taxation and Mutual Administrative Assistance in Tax Matters shall be applicable only in the Member States where an adequate Direct Tax Structure is in place. Further, in case of a Member State where such a structure is not in place, this Agreement shall become effective from the date on which such a Member State introduces a proper Direct Tax Structure and notifies the SAARC Secretariat to this effect. Further that in the event of a conflict between the provisions of this Limited Multilateral Agreement and that of any bilateral Double Taxation Avoidance Agreement between the Member States, the provisions of the Agreement signed or amended at a later date shall prevail. DONE at Dhaka, Bangladesh, On This The Thirteenth Day of November Two Thousand Five, In Nine Originals In English Language, All Texts Being Equally Authentic. Schedule I Member States to the Agreement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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