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Hashemite
kingdom of Jordan 1591-1592. Agreement for
avoidance of double taxation and prevention of fiscal evasion with Hashemite
Kingdom of Jordan Whereas the
annexed convention between the Government of the Republic of India and the
Government of the Hashemite Kingdom of Jordan for the avoidance of double
taxation and the prevention of fiscal evasion with respect to taxes on income
has entered into force on the 16th day of October, 1999, in accordance with
article 29 of the said Convention, thirty days after the receipt of the later
of the notifications by both the Contracting States to each other of the
completion of the procedures required by their respective laws for bringing
into force of the said Convention : 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 Convention shall be given effect to in the Union of
India. Notification
No. GSR 810(E), dated 8-12-1999. Annexure
Convention between the Government of the
Republic of India and The Government
of the Republic of India and the Government of the Hashemite Kingdom of Jordan
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 cooperation between the two countries, have agreed as
follows : Article 1 : Personal
Scope - This Convention shall apply to persons who are residence 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, and taxes on the
total amounts of wages or salaries paid by enterprises. 3. The existing taxes to which the convention
shall apply are in particular : (a) In India : the income-tax, including
any surcharge thereon ; (hereinafter referred to as
Indian tax), (b) In Jordan : (i) the income-tax; (ii) the distribution tax; and (iii) the social service tax (hereinafter referred to as
Jordanian tax). 4. The Convention shall apply also to any
identical or substantially similar taxes which are imposed after the date of
signature of the Convention in addition to, or in place of, the existing
taxes referred to in para 3. The competent authorities of the Contracting State
shall notify each other of significant changes which have been made in their
respective taxation laws. Article 3 : General
Definitions - 1. For the purposes of this Convention, unless the
context otherwise requires : (a) the term India 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; (b) the term Jordan means the territories of the Hashemite Kingdom
of Jordan, the territorial waters of Jordan and airspace above it, and the
seabed and subsoil of the territorial waters, and includes any area extending
beyond the limits of the territorial waters of Jordan, and the seabed and
subsoil of any such area, which has been or may hereafter be designated, under
the laws of Jordan, and in accordance with international law as an area over
which Jordan has sovereign rights for the purposes of exploring and exploiting
the natural resources, whether living or non-living; (c) the term person includes an individual, a company, a body of
persons and any other entity which is treated as a taxable unit under the
taxation laws in force in the respective Contracting States; (d) the term company means any body corporate or any entity which is
treated as a body corporate for tax purposes; (e) the terms enterprise of a Contracting State and enterprise of
the other Contracting State mean respectively an enterprise carried on by a
resident of a Contracting State and an enterprise carried on by a resident of
the other Contracting State; (f) the term international traffic means any transport by a 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; (g) the term competent authority means : (i) in India : the Central Government in the Ministry of Finance
(Department of Revenue) or their authorised representative; (ii) in Jordan : the Minister of Finance or his authorised
representative. (h) 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. (i) the term fiscal year means : (i) in the case of India, previous year as defined under section 3 of
the Income-tax Act, 1961; (ii) in the case of Jordan the year as defined in Article 2 of the
Income-tax Law (57 of 1985). (j) the term tax means Indian tax or Jordanian tax, as the context
requires, but shall not include any amount which is payable in respect of any
default or omission in relation to the taxes to which this Convention applies
or which represents a penalty or fine imposed relating to those taxes; (k) the terms a Contracting State and the other Contracting State
mean the Republic of India or the Hashemite Kingdom of Jordan as the context
requires. 2. As regards the application of the Convention
by a Contracting State any term not defined therein shall, unless the context
otherwise requires, have the meaning which it has under the law of that State concerning
the taxes to which the Convention applies. Article 4 : Resident
- 1. For the purposes of this Convention, 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. But this term does not include any
person who is liable to tax in that State in respect only of income from
sources in that State. 2. Where by reason of the provisions of paragraph
1 an individual is a resident of both Contracting States, then his status shall
be determined as follows : (a) he shall be deemed to be a resident of the State in which he has a
permanent home available to him; if he has a permanent home available to him in
both States, he shall be deemed to be a resident of the State with which his
personal and economic relations are closer (centre of vital interests); (b) if the State in which he has his centre of vital interests cannot
be determined, or if he has not a permanent home available to him in either
State, he shall be deemed to be a resident of the State in which he has an
habitual abode. (c) if he has an habitual abode in both States or in neither of them,
he shall be deemed to be a resident of the State of which he is a national; (d) if he is a national of both States or of neither of them, the
competent authorities of the Contracting States shall settle the question by
mutual agreement. 3. Where by reason of the provisions of paragraph
1 a person other than an individual is a resident of both Contracting States,
then it shall be deemed to be a resident of the State in which its place of
effective management is situated. If the State in which its place of effective
management is situated cannot determined, then the competent authorities of the
Contracting States shall settle the question by mutual agreement. Article 5 : Permanent
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 mine, an oil or gas well, a quarry or any other place of
exploration, exploitation or extraction of natural resources; (g) a sales outlet; (h) a warehouse in relation to a person providing storage facilities
for others; and (i) a farm, plantation or other place where agricultural, forestry,
plantation or related activities are carried on. 3. A building site or construction or assembly
project or installation project or supervisory activities in connection
therewith constitute a permanent establishment only if such site, project or
activity last more than six months. 4. An enterprise shall be deemed to have a
permanent establishment in a Contracting State and to carry on business
through that permanent establishment if it provides services or facilities in
connection with, or supplies plant and machinery on hire used for or to be used
in the prospecting for, or extraction or exploitation of mineral oils in that
State. 5. Notwithstanding the preceding provisions of
this Article, the term permanent establishment shall be deemed not to include
: (a) the use of facilities solely for the purpose of storage, display
or delivery of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of storage, display or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a fixed place of business solely for the purpose
of purchasing goods or merchandise or of collecting information, for the
enterprise; (e) the maintenance of a fixed place of business solely for the purpose
of carrying on, for the enterprise, any other activity of a preparatory or
auxiliary character; (f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in sub-paragraphs (a) to (e),
provided that the overall activity of the fixed place of business resulting
from this combination is of a preparatory or auxiliary character. 6. Notwithstanding the provisions of paragraphs 1
and 2, where a person - other than an agent of an independent status to whom
paragraph 8 applies - is acting on behalf of an enterprise and has, and
habitually exercises, in a Contracting State an authority to conclude
contracts in the name of the enterprise, that enterprise shall be deemed to
have a permanent establishment in that State in respect of any activities which
that person undertakes for the enterprise, unless the activities of such
person are limited to those mentioned in paragraph 5 which, if exercised
through a fixed place of business, would not make this fixed place of business
a permanent establishment under the provisions of that paragraph. 7. Notwithstanding the preceding provisions of
this Article, an insurance enterprise of a Contracting State shall, except in
regard 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 8 applies. 8. 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 persons are 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. 9. 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 Property - 1. Income derived by a resident of a
Contracting State from immovable property (including income from agriculture
or forestry) situated in the other Contracting State may also be taxed in that
other State. 2. The term immovable property shall have the
meaning which it has under the law of the Contracting State in which the
property in question is situated. The term shall in any case include property
accessory to immovable property, livestock and equipment used in agriculture
and forestry, rights to which the provisions of general law respecting landed
property apply, usufruct of immovable property and rights to variable or fixed
payments as consideration for the working of, or the right to work, mineral
deposits, sources and other natural resources; ships, boats, aircraft and motor
vehicles shall not be regarded as immovable property. 3. The provisions of paragraph 1 shall apply to
income derived from the direct use, letting, or use in any other form of immovable
property. 4. The provisions of paragraphs 1 and 3 shall
also apply to the income from immovable property of an enterprise and to income
from immovable property used for the performance of independent personal services. Article 7 : Business
Profits - 1. The profits of an enterprise of a Contracting State
shall be taxable only in that State unless the enterprise carries on business
in the other Contracting State through a permanent establishment situated
therein. If the enterprise carries on business as aforesaid, the profits of
the enterprise may also be taxed in the other State but only so much of them
as is attributable to that permanent establishment. 2. Subject to the provisions of paragraph 3,
where an enterprise of a Contracting State carries on business in the other
Contracting State through a permanent establishment situated therein, there
shall in each Contracting State be attributed to that permanent establishment
the profits which it might be expected to make if it were a distinct and
separate enterprise engaged in the same or similar activities under the same or
similar conditions and dealing wholly independently with the enterprise of
which it is a permanent establishment. 3. In determining the profits of a permanent
establishment, there shall be allowed as deductions expenses which are incurred
for the purposes of the permanent establishment, 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 tax laws of that State. 4. No profit 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 by that enterprise of ships or aircraft in
international traffic shall be taxable only in that State. 2. For the purposes of this Article, profits from
the operation of ships or aircraft in international traffic shall mean profits
derived by an enterprise described in paragraph 1 from the transportation by
sea or air respectively of passengers, mail, livestock or goods carried on by
the owners or lessees or charterers of ships or aircraft including - (a) the sale of tickets for such transportation on behalf of other
enterprises; (b) other activity directly connected with such transportation; and (c) the rental of ships or aircraft incidental to any activity directly
connected with such transportation. 3. Profits of an enterprise of a Contracting
State described in paragraph 1 from the use, maintenance, or rental of
containers (including trailers, barges, and related equipment for the transport
of containers) used in connection with the operation of ships or aircraft in
international traffic shall be taxable only in that State. 4. The provisions of paragraphs 1 and 3 shall
also apply to profits from participation in a pool, a joint business or code
sharing, or an international operating agency. 5. For the purposes of this Article, interest on
funds connected with the operation of ships or aircraft in international
traffic shall be regarded as profits derived from the operation of such ships
or aircraft, and the provisions of Article 11 (Interest) shall not apply in
relation to such interest. 6. Gains derived by an enterprise of a
Contracting State described in paragraph 1 from the alienation of ships,
aircraft or containers owned and operated by the enterprise, the income from
which is taxable only in that State, shall be taxed only in that State. 7. Notwithstanding the preceding provisions of
this Article, income derived by an enterprise of a Contracting State from the
operation of ships between the ports of the other Contracting State and the
ports of third countries may be taxed in that other Contracting State, but the
tax imposed in that other State shall, be reduced by an amount equal to 50%
thereof. Article 9 : Associated
Enterprises - 1. Where (a) an enterprise of a Contracting State participates directly or
indirectly in the management, control or capital of an enterprise of the other
Contracting State, or (b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a Contracting State and an
enterprise of the other Contracting State, and in either
case conditions are made or imposed between the two enterprises in their
commercial or financial relations which differ from those which would be made
between independent enterprises, then any profits which would, but for those
conditions, have accrued to one of the enterprises, but, by reason of those
conditions, have not so accrued, may be included in the profits of that
enterprise and taxed accordingly. 2. Where a Contracting State includes in the
profits of an enterprise of that State and taxes accordingly- profits on which
an enterprise of the other Contracting State has been charged to tax in that
other State and the profits so included are profits which would have accrued to
the enterprise of the first mentioned State if the conditions made between the
two enterprises has been those which would have been made between independent
enterprises, then that other State shall make an appropriate adjustment to
the amount of the tax charged therein on those profits. In determining such
adjustment, due regard shall be had to the other provisions of this Convention
and the competent authorities of the Contracting States shall, if necessary
consult each other. Article 10 : Dividends - 1. Dividends paid
by a company which is a resident of a Contracting State to a resident of the
other Contracting State may 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 establishment situated
therein, or performs in that other State independent personal services from a
fixed base situated therein, and the holding in respect of which the dividends
are paid is effectively connected with such permanent establishment or fixed
base. In such case, the provisions of Article 7 or Article 14, as the case may
be, shall apply. 5. Where a company which is a resident of a
Contracting State derives profits or income from the other Contracting State,
that other State may not impose any tax on the dividends paid by the company,
except insofar as such dividends are paid to a resident of that other State or
insofar as the holding in respect of which the dividends are paid is
effectively connected with a permanent establishment or a fixed base situated
in that other State, nor subject the companys undistributed profits to a tax
on the companys undistributed profits, even if the dividends paid or the
undistributed profits consist wholly or partly of profits or income arising in
such other State. Article 11 : Interest
- 1. Interest arising in a Contracting State and paid to a resident
of the other Contracting State may be taxed in that other State. 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 the beneficial owner of the interest the tax so
charged shall not exceed 10 per cent of the gross amount of the interest. The
competent authorities of the Contracting State shall by mutual agreement settle
the mode of application of this limitation. 3. Notwithstanding the provisions of paragraph
2, interest arising in a Contracting State shall be exempt from tax in that
State provided it is derived and beneficially owned by : (i) the Government, a political sub-division or a local authority of
the other Contracting State; or (ii) the Central Bank of the other Contracting State; or any other bank
or Governmental financial institutions/agencies that 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 debtors 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. 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 performs in that
other State independent personal services from a fixed base situated therein,
and the debt-claim in respect of which the interest is paid is effectively
connected with such permanent establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case may be, shall apply. 6. Interest shall be deemed to arise in a
Contracting State when the payer is that state itself, a political
sub-division, a local authority or a resident of that state. Where, however,
the person paying the interest, whether he is a resident of a Contracting
State or not, has in a Contracting State a permanent establishment or a fixed
base in connection with which the indebtedness on which the interest is paid
was incurred, and such interest is borne by such permanent establishment or fixed
base, then such interest shall be deemed to arise in the Contracting State in
which the permanent establishment or fixed base is situated. 7. Where, by reason of a special relationship
between the payer and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to the debt-claim for
which it is paid, exceeds the amount which would have been agreed upon by the
payer and the beneficial owner in the absence of such relationship, the
provisions of this Article shall apply only to the last-mentioned amount. In
such case, the excess part of the payments shall remain taxable according to
the laws of each Contracting State, due regard being had to the other
provisions of this Convention. Article 12 : Royalties
and Fees for Technical Services - 1. Royalties or fees for technical
services arising in a Contracting State and paid to a resident of the other
Contracting State may be taxed in that other State. 2. However, such royalties for fees for technical
services may also be taxed in the Contracting State in which they arise, and
according to the laws of that State, but if the recipient is the beneficial
owner of the royalties or fees for technical services, the tax so charged shall
not exceed 20 per cent of the gross amount of the royalties or fees for
technical services. 3. (a) The term royalties as used in
this Article means payments of any kind received as a consideration for the use
of, or the right to use, any copyright of literary, artistic or scientific work
including cinematograph films, and films or tapes or any other means of
reproduction for television or radio broadcasting, any patent, trade mark,
design or model, plan, 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 connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or Article 14, as the
case may be, shall apply. 5. Royalties or fees for technical services shall
be deemed to arise in a Contracting State when the payer is that State itself,
a political sub-division, a local authority or a resident of that State. Where,
however, the person paying the royalties or fees for technical services,
whether he is a resident of a Contracting State or not, has in a Contracting
State a permanent establishment or a fixed base in connection with which the
liability to pay the royalties or fees for technical services was incurred, and
such royalties or fees for technical services are borne by such permanent
establishment or fixed base, then such royalties or fees for technical services
shall be deemed to arise in the State in which the permanent establishment or
fixed base is situated. 6. Where, by reason of a special relationship
between the payer and the beneficial owner or between both of them and some
other person, the amount of the royalties or fees for technical services,
having regard to the use, right or information for which they are paid, exceeds
the amount which would have been agreed upon by the payer and the beneficial
owner in the absence of such relationship, the provisions of this Article shall
apply only to the last-mentioned amount. In such case, the excess part of the
payments shall remain taxable according to laws of each Contracting State, due
regard being had to the other provisions of this Convention. Article 13 : Capital
Gains - 1. Gains derived by a resident of a Contracting State from
the alienation of immovable property referred to in Article 6 and situated in
the other Contracting State may also be taxed in that other State. 2. Gains from the alienation of movable property
forming part of the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting State or of
movable property pertaining to a fixed base available to a resident of a
Contracting State in the other Contracting State for the purpose of performing
independent personal services, including such gains from the alienation of
such a permanent establishment (alone or with the whole enterprise) or of such
fixed base, may also be taxed in that other State. 3. Gains derived by 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 any property
other than that referred to in paragraphs 1, 2, 3 and 4 shall be taxable only
in the Contracting State of which the alienator is a resident, provided that
such resident is subject to tax thereon in that State. If the resident is not
subject to tax thereon, then such gains may be taxed in the other Contracting
State. 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 the other
Contracting State for the purpose of performing his activities; in that case,
only so much of the income as is attributable to that fixed base may be taxed
in that other State; or (b) if his stay in the other State is for a period or periods aggregating
183 days or more in any 12-month period commencing or ending in the fiscal year
concerned; in that case, only so much of the income as is derived from his
activities performed in that other State may be taxed in that other State; or (c) if the remuneration for his activities in the other Contracting
State is paid by a resident of that Contracting State or is borne by a
permanent establishment or a fixed base situated in that Contracting State and
exceeds in the fiscal year the equivalent of US $ 2000. 2. The term professional services includes
especially independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of physicians, lawyers,
engineers, architects, surgeons, dentists and accountants. Article 15 : Dependent
Personal Services - 1. Subject to the provisions of Articles 16, 18
and 19, salaries, wages and other similar remuneration derived by a resident of
a Contracting State in respect of an employment shall be taxable only in that
State unless the employment is exercised in the other Contracting State. If the
employment is so exercised, such remuneration as is derived therefrom may be
taxed in that other State. 2. Notwithstanding the provisions of paragraph
1, remuneration derived by a resident of a Contracting State in respect of an
employment exercised in the other Contracting State shall be taxable only in
the first-mentioned State if : (a) the recipient is present in the other State for a period or periods
not exceeding in the aggregate 183 days in any 12-month period commencing or
ending in the fiscal year concerned, and (b) the remuneration is paid by, or on behalf of, an employer who is
not a resident of the other State, and (c) the remuneration is not borne by a permanent establishment or a
fixed base which the employer has in the other State. 3. Notwithstanding the preceding provisions of
this Article, remuneration derived in respect of an employment exercised aboard
a ship or aircraft operated by an enterprise which is a resident of a
Contracting State in international traffic shall be taxable only in that
Contracting State. Article 16 : Directors
Fees - Directors fees and other similar payments derived by a resident of
a Contracting State in his 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 Sportsmen - 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 sportsman, from his personal activities as such exercised in the other
Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities
exercised by an entertainer or a sportsman in his capacity as such accrues not
to the entertainer or sportsman 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 sportsman are
exercised. 3. The provisions of paragraphs 1 and 2, shall
not apply to income from activities performed in a Contracting State by entertainers
or sportsmen if the visit to that State is substantially supported by public
funds of one or both of the Contracting State or of political sub-divisions or
local authorities thereof. In such a case, the income is taxable only in the
Contracting State of which the entertainer or sportsman is a resident. Article 18 : Pensions
- 1. Subject to the provisions of paragraph 2 of Article 19,
pensions and other similar remuneration paid to a resident of a Contracting
State in consideration of past employment shall be taxable only in that State. 2. Notwithstanding the provisions of paragraph 1,
pensions paid and other payments made under a public scheme which is part of
the social security system of a Contracting State or a political sub-division
or a local authority thereof shall be taxable only in that State. Article 19 : Government
Service - 1. (a) Remuneration, other than a pension, paid by
a Contracting State or a political sub-division or a local authority thereof
to an individual in respect of services rendered to that State or sub-division
or authority shall be taxable only in that State. (b)
However, such remuneration shall be taxable only in the other Contracting State
if the services are rendered in that State and the individual is a resident of
that State who : (i) is a national of that State ; or (ii) did not become a resident of that State solely for the purpose of
rendering the services. 2. (a) Any pension paid by, or out of
funds created by, a Contracting State or a political sub-division or a local
authority thereof to an individual in respect of services rendered to that
State or sub-division or authority shall be taxable only in that State. (b)
However, such pension shall be taxable only in the other Contracting State if
the individual is a resident of and a national of, that State. 3. The provisions of Articles 15, 16 and 18 shall
apply to remuneration and pensions in respect of services rendered in connection
with a business carried on by a Contracting State or a political sub-division
or a local authority thereof. Article 20 : Students
and Apprentices - 1. A student or business apprentice who is or was
a resident of a Contracting State immediately before visiting the other
Contracting State and who is present in that other Contracting State solely for
the purpose of his education or training shall 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, in an amount not
exceeding US $ 500 or its equivalent amount during any fiscal year, as the case
may be, 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 five consecutive
years from the date of his first arrival in that other Contracting State. Article 21 : Professors,
Teachers and Research Scholars - 1. A professor or teacher who is or
was a resident of the Contracting State immediately before visiting the other
Contracting State for the purpose of teaching or engaging in research, or both,
at a university, college, school or other approved institution in that other
Contracting State shall be exempt from tax in that other State on any
remuneration for such teaching or research for a period not exceeding one year
from the date of his arrival in that other State. 2. This Article shall not apply to income from
research, if such research is undertaken primarily for the private benefit of a
specific person or persons. 3. For the purposes of this Article and Article
20, an individual shall be deemed to be a resident of a Contracting State if he
is resident in that State in the fiscal year in which he visits the other
Contracting State or in the immediately preceding fiscal year. 4. For the purposes of paragraph 1 approved
institution means an institution which has been approved in this regard by the
competent authority of the concerned State. Article 22 : Other
Income - 1. Items of income of a resident of a Contracting State,
wherever arising, not dealt with in the foregoing Articles of this Convention
shall be taxable only in that State. 2. The provisions of paragraph 1 shall not apply
to income, other than income from immovable property as defined in paragraph 2
of Article 6, if the recipient of such income, being a resident of a
Contracting State, carries on business in the other Contracting State 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 income is paid is effectively connected
with such permanent establishment or fixed base. In such case the provisions
of Article 7 or Article 14, as the case may be, shall apply. 3. Notwithstanding the provisions of paragraph 1,
if a resident of a Contracting State derives income from sources within the
other Contracting State in the form of lotteries, crossword puzzles, races
including horse races, card games and other games of any sort or gambling or
betting of any form or nature whatsoever, such income may be taxed in the other
Contracting 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 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 Jordan. India shall allow as a deduction from
the tax on the income of that resident an amount equal to the income-tax paid
in Jordan whether directly or by deduction at source. Such amount 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 Jordan. 3. In the case of Jordan, double taxation shall
be eliminated as follows : Where a
resident of Jordan derives income which in accordance with the provisions of
this Convention, may be taxed in India. Jordan shall allow as a deduction from
the tax on the income of that resident an amount equal to the income-tax paid
in India. 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. 4. The tax payable in the Contracting State
mentioned in paragraphs 2 and 3 of this Article shall be deemed to include the
tax which would have been payable but for the tax incentives granted under the
Laws of the Contracting State and which are designed to promote economic
development. 5. Income which in accordance with the provisions
of this Convention, is not to be subjected to tax in a Contracting State, may
be taken into account for calculating the rate of tax to be imposed in that
Contracting State. Article 24 : Non-Discrimination
- 1. Nationals of a Contracting State shall not be subjected in the
other Contracting State to any taxation or any requirement connected therewith,
which is other or more burdensome than the taxation and connected requirements
to which nationals of that other State in the same circumstances, in
particular with respect to residence, are or may be subjected. This provision
shall, notwithstanding the provisions of Article 1, also apply to persons who
are not residents of one or both of the Contracting States. 2. The taxation on a permanent establishment
which an enterprise of a Contracting State has in the other Contracting State
shall not be less favourably levied in that other State than the taxation
levied on enterprises of that other State carrying on the same activities. This
provision shall not be construed as preventing a Contracting State from
granting to residents of the other Contracting State any personal allowances,
reliefs and reductions for taxation purposes on account of civil status or
family responsibilities which it grants to its own residents. 3. 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. 4. Except where the provisions of Article 9,
paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties
and other disbursement paid by an enterprise of a Contracting State to a
resident of the other Contracting State shall, 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. The provisions of this Article shall, notwithstanding
the provisions of Article 12 apply to taxes of every kind and description
which are the subject of this Convention. Article 25 : Mutual
Agreement Procedure - 1. Where a person considers that the actions
of one or both of the Contracting States result or will result for him in
taxation not in accordance with the provisions of this Convention, he may,
irrespective of the remedies provided by the domestic law of those States,
present his case to the competent authority of the Contracting State of which
he is a resident or, if his case comes under paragraph 1 of Article 24, to that
of the Contracting State of which he is a national. The case must be presented
within three years from the first notification of the action resulting in
taxation not in accordance with the provisions of the Convention. 2. The competent authority shall endeavour, if
the objection appears to it to be justified and if it is not itself able to
arrive at a satisfactory solution, to resolve the case by mutual agreement with
the competent authority of the other Contracting State, with a view to the
avoidance of taxation which is not in accordance with the Convention. Any
agreement reached shall be implemented notwithstanding any time-limits in the
domestic law of the Contracting States. 3. The competent authorities of the Contracting
States shall endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the Convention. They
may also consult together for the elimination of double taxation in cases not
provided for in the Convention. 4. The competent authorities of the Contracting
States may communicate with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs. When it seems advisable in
order to reach agreement to have an oral exchange of opinions, such exchange
may take place through a Commission consisting of representatives of the
competent authorities of the Contracting States. Article 26 : Exchange
of Information - 1. The competent authorities of the Contracting
States shall exchange such information (including documents), as is necessary
for carrying out the provisions of this Convention or of the domestic laws of
the Contracting States concerning taxes covered by the Convention insofar as
the taxation thereunder is not contrary to the Convention in particular for
the prevention of fraud or evasion of such taxes. The exchange of information
is not restricted by Article 1. Any information received 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) 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 the
Convention. Such persons or authorities shall use the information only for such
purposes. They may disclose the information in public court proceedings or in
judicial decisions. 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 is 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 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 : Collection
Assistance - 1. The Contracting States undertake to lend assistance to
each other in the collection of taxes to which this Convention relates,
together with interest, costs and civil penalties relating to such taxes
referred to in this Article as a revenue claim. 2. Request for assistance by the competent
authority of a Contracting State in the collection of a revenue claim shall
include a certification by such authority that, under the laws of that State,
the revenue claim has been finally determined. For the purposes of this
Article, a revenue claim is finally determined when a Contracting State has the
right under its internal law to collect the revenue claim and the taxpayer has
no further rights to restrain collection. 3. Amounts collected by the competent authority
of a Contracting State pursuant to this Article shall be forwarded to the competent
authority of the other Contracting State. However, the first-mentioned
Contracting State shall be entitled to reimbursement of costs, if any,
incurred in the course of rendering such assistance to the extent mutually agreed
between the competent authorities of the two States. 4. Nothing in this Article shall be construed as
imposing on either Contracting State the obligation to carry out administrative
measures of a different nature from those used in the collection of its own
taxes or those which would be contrary to its public policy. Article 28 : Diplomatic
Agents and Consular Officers - Nothing in this Convention shall affect the
fiscal privileges of diplomatic agents or consular officers under the general
rules of international law or under the provisions of special agreements. Article 29 : Entry
into Force - 1. The Contracting States shall notify each other in
writing, through diplomatic channels, the completion of the procedure required
by the respective laws for the entry into force of this Convention. 2. This Convention shall enter into force thirty
days after the receipt of the later of the notifications referred to in paragraph
1 of this Article. 3. The provisions of this Convention shall have
effect : (a) in India, in respect of income arising in any fiscal year beginning
on or after the first day of April next following the calendar year in which
the Convention enters into force; and (b) in Jordan, in respect of income arising in any fiscal year
beginning on or after the first day of January next following the calendar
year in which the Convention enters into force. Article 30 : Termination
- This Convention shall remain in force indefinitely until terminated by a
Contracting State. Either Contracting State may terminate the 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 the Convention. In such event,
the Convention shall cease to have effect : (a) in India, in respect of income arising in any previous year on or
after the first day of April next following the calendar year in which the
notice of termination is given; (b) in Jordan, in respect of income arising in any previous year on or
after the first day of January next following the calendar year in which the
notice of termination is given. In witness whereof the
undersigned, being duly authorised thereto, have signed this Convention. Done in duplicate at
New Delhi, this twentieth day of April, 1999 in Arabic, Hindi and English
languages. All three texts being equally authentic. In case of divergence
between the texts the English text shall be the operative one. Protocol At the signing
of the Convention concluded today between the Government of the Republic of
India and the Government of the Hashemite Kingdom of Jordan for the avoidance
of double taxation and the prevention of fiscal evasion with respect to taxes
on income, the undersigned have agreed that the following provisions shall form
an integral part of the said Convention : Article 9 : Associated
Enterprises - 1. With reference to paragraph 2 of Article 9, it is
understood that the provisions shall not apply in the case of fraud or wilful
default. Article 17 : Artists
and Sportsmen - 2. With reference to paragraph 3 of Article 17, it
is understood that the provisions shall apply in respect of income derived by
an artiste from the activities performed in the other Contracting State under
the cultural agreements concluded between the Governments of the Contracting
States. Article 24 : Non
Discrimination - 3. With reference to paragraph 3 of Article 24, it
is understood that this provision shall not be construed as preventing a Contracting
State from charging the profits of a permanent establishment which a company
of the other Contracting State has in the first-mentioned State at a rate of
tax which is higher than that imposed on the profits of a similar company of
the first-mentioned Contracting State. In witness whereof the
undersigned, being duly authorised thereto, have signed this Convention. Done in duplicate at
New Delhi, this twentieth day of April, 1999 in Arabic, Hindi and English
languages, all three texts being equally authentic. In case of divergence
between the texts the English text shall be the operative one.
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