TMI BlogAgreement for Avoidance of double taxation and prevention of fiscal evasion with foreign countries - PolandX X X X Extracts X X X X X X X X Extracts X X X X ..... y the respective laws for entry into force of the said Protocol, in accordance with paragraph 1 of article 17 of the said Protocol; And whereas, sub-paragraph (a) of paragraph 1 of article 17 of the said Protocol provides that the provisions of the said Agreement shall have effect in India in respect of taxes withheld at source to amounts of income derived on or after the first day of the fiscal year next following the year in which the Protocol enters into force and in respect of other taxes on income to amounts of income derived in any fiscal year beginning on or after the first day of the fiscal year next following the year in which the Protocol enters into force; Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961) , the Central Government hereby directs that all the provisions of the said Protocol amending the agreements between the Government of the Republic of India and the Government of Polish People's Republic for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, as set out in the Annexure hereto, shall be given effect to in the Union of India with effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd exploitation of the natural resources of the seabed and its sub-soil may be exercised; . 2. After clause (j) of paragraph 1 the following clause shall be inserted: (k) The term fiscal year , in the case of India, means the financial year beginning on the first day of April. . ARTICLE 3 In Article 4 (FISCAL RESIDENCE) of the Agreement, paragraph 1 shall be deleted and replaced by the following paragraph: 1. For the purposes of this Agreement, the term resident of a Contracting State means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State. . - ARTICLE 4 In Article 5 (PERMANENT ESTABLISHMENT), the following paragraph shall be inserted after Paragraph 2: 2A. The term permanent establishment shall also include the furnishing of services, including consultancy services, by an enterprise of a Contracting State thro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting State, 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 dividends are paid. . ARTICLE 7 In Article 12 (INTEREST) of the Agreement: 1. Paragraph 2 shall be deleted and replaced by the following paragraph: 2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient is beneficial owner of the interest the tax so charged shall not exceed TO per cent of the gross amount of the interest. . 2. Clause (i) of sub paragraph (b) of paragraph 3 shall be deleted and replaced by the following clause: (i) in the case of Poland, Bank Gospodarstwa Krajowego (BGK), to the extent such interest is attributable to financing of exports and imports only; . ARTICLE 8 In Article 13 (ROYALTIES AND FEES FOR TECHNICAL SERVICES) of the Agreement, paragraphs 2, 3 and 4 shall be deleted and replaced by the following paragraphs: 2. However, such royalties or fees for technical services may also be taxed in the Contracting State in which they arise, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such payments arise from sources outside that State. 2. Notwithstanding the provisions of Article 16, remuneration which a student, or an apprentice or trainee who is or was, immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training, receives for dependent personal services rendered in that first-mentioned State shall not be taxable in that State, provided that such services are directly related, and incidental, to his education or training or the remuneration for those services is necessary to supplement the resources for his maintenance. However, in any case the benefits of this paragraph shall not be granted for a period of more than five consecutive years from the date of his first arrival in the first-mentioned State. . ARTICLE 12 Article 24 (ELIMINATION OF DOUBLE TAXATION) of the Agreement shall be deleted and replaced by the following Article: Article 24 ELIMINATION OF DOUBLE TAXATION 1. In case of India, double taxation shall be avoided as follows: (a) Where a resident of India derives income which, in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TION) of the Agreement shall be deleted and replaced by the following Article: Article 27 EXCHANGE OF INFORMATION 1. The competent authorities of the Contracting States shall exchange such information (including documents or certified copies of the documents) as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2. 2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng with the individuals concerned. 7. At the request of the competent authority of one Contracting State, the competent authority of the other Contracting State may allow representatives of the competent authority of the first-mentioned Contracting State to be present at the appropriate part of a tax examination in the second-mentioned Contracting State. 8. If the request referred to in paragraph 7 is acceded to, the competent authority of the Contracting State conducting the examination shall, as soon as possible, notify the competent authority of the other Contracting State about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Contracting State for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be madeby the Contracting State conducting the examination. ARTICLE 15 Article 28 (ASSISTANCE IN COLLECTION) of the Agreement shall be deleted and replaced by the following Article: Article 28 ASSISTANCE IN THE COLLECTION OF TAXES 1. The Contracting States shall lend assistance to each othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts of that person in that other Contracting State to the extent permitted in the provisions of its law. 6. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State for purposes of paragraph 3 or 4 shall not, in that State, be subject to the time limits or accorded any priority applicable to a revenue claim under the laws of that State by reason of its nature as such. In addition, a revenue claim accepted by a Contracting State for the purposes of paragraph 3 or 4 shall not, in that State, have any priority applicable to that revenue claim under the laws of the other Contracting State. 7. Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall only be brought before the courts or administrative bodies of that State. Nothing in this Article shall be construed as creating or providing any right to such proceedings before any court or administrative body of the other Contracting State. 8. Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other Contracting State has collected and remitted the relevant revenue claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieth day after the date of receipt of the latter of the notifications referred to above and shall have effect: (a) in India: (i) in respect of the taxes withheld at source - to amounts of income derived on or after the first day of the fiscal year next following the year in which the Protocol enters into force; (ii) in respect of other taxes on income - to amounts of income derived in any fiscal year beginning on or after the first day of the fiscal year next following the year in which the Protocol enters into force. (b) in Poland: (i) in respect of the taxes withheld at source - to amounts of income derived on or after the first of January of the calendar year next following the year in which the Protocol enters into force; (ii) in respect of other taxes on income - to amounts of income derived in any fiscal year beginning on or after the first of January of the calendar year next following the year in which the Protocol enters into force. 2. Notwithstanding the provisions of paragraph 1 of this Article, the provisions of Articles 14 and 15 of this Protocol shall apply in respect of any matter referred to in these Articles even if such matters pre-date ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
