TMI BlogDefinitionsX X X X Extracts X X X X X X X X Extracts X X X X ..... 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the said Agreement between the Government of the Republic of India and the Government of the United States of America for the exchange of information with respect to taxes, as set out in the said Agreement, shall be given effect to in the Union of India with effect from the 31 st August, 2015, that is, the date of entry into force of the said Agreement. [F. No. 500/137/2011-FTD-I] (Akhilesh Ranjan) Joint Secretary Agreement between the Government of the Republic of India and the Government of the United States of America to Improve International Tax Compliance and to Implement FATCA Whereas, the Government of the Republic of India and the Government of the United States of America (each, a Party, and together, the Parties ) desire to conclude an agreement to improve international tax compliance through mutual assistance in tax matters based on an effective infrastructure for the automatic exchange of information; Whereas, Article 28 of the Convention between the Government of the Republic of India and the Government of the United States of America for the Avoi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans the territory of the United States of America, including inland waters, the air space, the territorial sea thereof and any maritime area beyond the territorial sea within which the United States may exercise sovereign rights or jurisdiction in accordance with international law; the term, however, does not include the U.S. Territories. Any reference to a State of the United States includes the District of Columbia. b) The term U.S. Territory means American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, or the U.S. Virgin Islands. c) The term IRS means the U.S. Internal Revenue Service. d) The term India means the Republic of India, and when used in a geographical sense, means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the U.N. Convention on the Law of the Sea. e) The term Partner Jurisdiction means a jurisdiction that has in effect an agreement with the United States to facilitate the implement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... term Indian Financial Institution means (i) any Financial Institution resident in India, but excluding any branch of such Financial Institution that is located outside India, and (ii) any branch of a Financial Institution not resident in India, if such branch is located in India. m) The term Partner Jurisdiction Financial Institution means (i) any Financial Institution established in a Partner Jurisdiction, but excluding any branch of such Financial Institution that is located outside the Partner Jurisdiction, and (ii) any branch of a Financial Institution not established in the Partner Jurisdiction, if such branch is located in the Partner Jurisdiction. n) The term Reporting Financial Institution means a Reporting Indian Financial Institution or a Reporting U.S. Financial Institution, as the context requires. o) The term Reporting Indian Financial Institution means any Indian Financial Institution that is not a Non-Reporting Indian Financial Institution. p) The term Reporting U.S. Financial Institution means (i) any Financial Institution that is resident in the United States, but excluding any branch of such Financial Institution that is located outside the U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bility benefit provided under an account that is excluded from the definition of Financial Account in Annex II. Notwithstanding the foregoing, the term Financial Account does not include any account that is excluded from the definition of Financial Account in Annex II. For purposes of this Agreement, interests are regularly traded if there is a meaningful volume of trading with respect to the interests on an ongoing basis, and an established securities market means an exchange that is officially recognized and supervised by a governmental authority in which the market is located and that has a meaningful annual value of shares traded on the exchange. For purposes of this subparagraph 1(s), an interest in a Financial Institution is not regularly traded and shall be treated as a Financial Account if the holder of the interest (other than a Financial Institution acting as an intermediary) is registered on the books of such Financial Institution. The preceding sentence will not apply to interests first registered on the books of such Financial Institution prior to July 1, 2014, and with respect to interests first registered on the books of such Financial Institution on or after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The term also includes a contract that is considered to be an Annuity Contract in accordance with the law, regulation, or practice of the jurisdiction in which the contract was issued, and under which the issuer agrees to make payments for a term of years. y) The term Cash Value Insurance Contract means an Insurance Contract (other than an indemnity reinsurance contract between two insurance companies) that has a Cash Value greater than $50,000. z) The term Cash Value means the greater of (i) the amount that the policyholder is entitled to receive upon surrender or termination of the contract (determined without reduction for any surrender charge or policy loan), and (ii) the amount the policyholder can borrow under or with regard to the contract. Notwithstanding the foregoing, the term Cash Value does not include an amount payable under an Insurance Contract as: (1) a personal injury or sickness benefit or other benefit providing indemnification of an economic loss incurred upon the occurrence of the event insured against; (2) a refund to the policyholder of a previously paid premium under an Insurance Contract (other than under a life insurance contract) due t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to access the Cash Value or change the beneficiary of the contract. If no person can access the Cash Value or change the beneficiary, the Account Holder is any person named as the owner in the contract and any person with a vested entitlement to payment under the terms of the contract. Upon the maturity of a Cash Value Insurance Contract or an Annuity Contract, each person entitled to receive a payment under the contract is treated as an Account Holder. ee) The term U.S. Person means a U.S. citizen or resident individual, a partnership or corporation organized in the United States or under the laws of the United States or any State thereof, a trust if (i) a court within the United States would have authority under applicable law to render orders or judgments concerning substantially all issues regarding administration of the trust, and (ii) one or more U.S. persons have the authority to control all substantial decisions of the trust, or an estate of a decedent that is a citizen or resident of the United States. This subparagraph 1(ee) shall be interpreted in accordance with the U.S. Internal Revenue Code. ff) The term Specified U.S. Person means a U.S. Person, other than ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... withstanding the foregoing, a U.S. Source Withholdable Payment does not include any payment that is not treated as a withholdable payment in relevant U.S. Treasury Regulations. jj) An Entity is a Related Entity of another Entity if either Entity controls the other Entity, or the two Entities are under common control. For this purpose control includes direct or indirect ownership of more than 50 percent of the vote or value in an Entity. Notwithstanding the foregoing, India may treat an Entity as not a Related Entity of another Entity if the two Entities are not members of the same expanded affiliated group as defined in section 1471(e)(2) of the U.S. Internal Revenue Code. kk) The term U.S. TIN means a U.S. federal taxpayer identifying number. ll) The term Indian TIN means an Indian taxpayer identifying number. mm) The term Controlling Persons means the natural persons who exercise control over an Entity. In the case of a trust, such term means the settlor, the trustees, the protector (if any), the beneficiaries or class of beneficiaries, and any other natural person exercising ultimate effective control over the trust, and in the case of a legal arrangement oth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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