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Kyrgyz Republic 1601. Agreement for avoidance
of double taxation and prevention of fiscal evasion with Kyrgyz Republic Whereas the
annexed Agreement between the Government of the Republic of India and the
Government of the Kyrgyz Republic for the avoidance of double taxation and for
the prevention of fiscal evasion with respect to taxes on income has come into
force on the 10th January, 2001, thirty days after the date of receipt of the
latter of the notifications by the Contracting States to each other of the
completion of the procedure required by the respective laws for the entry into
force of this Agreement in accordance with Article 29 of the said Agreement. 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 Agreement shall be given effect to in the Union of
India. Notification : No. GSR 75(E), dated 7-2-2001. Annexure Agreement between the Government of the republic of India and The Government
of the Republic of India and the Government of the Kyrgyz Republic, desiring to
conclude an Agreement 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 co-operation between the two countries have agreed as follows : Article 1 : Personal
Scope - This Agreement shall apply to persons who are residents of one or
both of the Contracting States. Article 2 : Taxes
Covered - 1. This Agreement shall apply to taxes on income imposed
on behalf of a Contracting State 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 Agreement
shall apply are in particular : (a) in India: the income-tax, including
any surcharge thereon; (hereinafter referred to as
Indian tax). (b) in Kyrgyzstan : (i) tax on profits and income of legal persons; (ii) income-tax on physical persons; (hereinafter referred to as
Kyrgyz tax); 4. The Agreement shall apply also to any
identical or substantially similar taxes which are imposed after the date of
signature of the Agreement in addition to, or in place of, the existing taxes
referred to in paragraph 3. The competent authorities of the Contracting States
shall notify each other of any significant changes which have been made in
their respective taxation laws. Article 3 : General
Definitions - 1. For the purposes of this Agreement, 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 Kyrgyzstan means the Kyrgyz Republic when used in the
geographical terms the term Kyrgyzstan means the territory on which the
Kyrgyz Republic exercises sovereign rights and jurisdiction in accordance with
Kyrgyz law and in accordance with International Law. (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 corporate entity which is treated as a
body corporate for tax purposes and includes in particular joint stock
companies, limited companies or any other enterprise treated as company under
Kyrgyz law; (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 an aircraft
operated by an enterprise which is a resident of a Contracting State, except
when the 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 authorized representative; (ii) in Kyrgyz Republic, the Ministry of Finance or their authorized
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, the financial year beginning on the first day
of April; (ii) in the case of Kyrgyzstan, the calendar year; (j) the term tax means Indian tax or Kyrgyz 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 Agreement 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 Kyrgyz Republic as the context requires. 2. As regards the application of the Agreement 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 Agreement applies. Article 4 : Resident
- 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. 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 be 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 Agreement, 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
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, a construction, assembly or
installation project, or supervisory activities connected therewith, only if
such site, or project or activity lasts for 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; or (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 personother than an agent of an independent status to whom
paragraph 8 applies - is acting in a Contracting State on behalf of an
enterprise of the other Contracting State that enterprise shall be deemed to
have a permanent establishment in the first-mentioned Contracting State in
respect of any activities which that person undertakes for the enterprise, if
such a person : (a) has and habitually exercises, in that State an authority to conclude
contracts in the name of 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 paragraphs; or (b) has no such authority, but habitually maintains in the
first-mentioned State a stock of goods or merchandise from which he regularly
delivers goods or merchandise on behalf of the enterprise; or (c) habitually secures orders in the first-mentioned State, wholly or
almost wholly for the enterprise itself or for the enterprise and other
enterprises controlling, controlled by, or subject to the same control, as that
enterprise. 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 it 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 other 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 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 and aircraft or
road and railway 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. 5. Where the ownership of shares or other
corporate rights in a company entitles the owner of such shares or corporate
rights to the enjoyment of immovable property held by the company, the income
from direct use, letting, or use in any other form of such right to enjoyment
may be taxed in the Contracting State, in which the immovable property is
situated. 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 business 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 profits 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 Agreement, then the provisions
of those Articles shall not be affected by the provisions of this Article. Article 8 : International
Traffic - 1. Profits derived by an enterprise of a Contracting State
from the operation of aircraft in international traffic shall be taxable only
in that Contracting State. 2. Profits derived by a transportation enterprise
which is a resident of a Contracting State from the use, maintenance, or rental
of containers (including trailers and other equipment for the transport of
containers) used for the transport of goods or merchandise in international
traffic shall be taxable only in that Contracting State unless the containers
are used solely within the other Contracting State. 3. For the purposes of this Article, interest on
funds connected with the operation of aircraft in international traffic shall
be regarded as profits derived from the operation of such aircraft, and the
provisions of Article 11 shall not apply in relation to such interest. 4. The provisions of paragraph 1 shall also apply
to profits from the participation in a pool, a joint business or an
international operating agency. 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 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 had 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 Agreement 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 in so far as such dividends are paid to a resident of that other State
or in so far 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. 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 of the other Contracting State; or (ii) the Central Bank of the other Contracting State or Governmental
financial institutions 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 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 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 a 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 Agreement. 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 or 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 15 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 : (i) the use of, or the right to use, any copyright of literary,
artistic or scientific work including software, cinematograph and video films
or records or tapes for television or radio; (ii) any patent, design or model, plan, secret formula or process, trade
mark or for information (know-how) concerning industrial, commercial, or
scientific experience; or (iii) the use of, or right to use, any industrial
commercial or scientific equipment. (b) the
term fees for technical services as used in this Article, 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 Agreement. 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 a 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
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 the laws of each Contracting State,
due regard being had to the other provisions of this Agreement. 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 be taxed in that other State. 3. Gains derived by a resident of Contracting
State from the alienation of aircraft operated in international traffic or
movable property pertaining to the operation of such aircraft, shall be taxable
only in the Contracting State in which the enterprise is a resident. 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 shares other than
those mentioned in paragraph 4 of a company which is a resident of a
Contracting State may be taxed in that State. 6. Gains from the alienation of any property
other than that referred to in paragraphs 1, 2, 3, 4 and 5 shall be taxable only
in the Contracting State of which the alienator is a resident. 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 Contracting 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. 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, 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 an individual
who is a resident of 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
an aircraft operated in international traffic by an enterprise which is a
resident of a Contracting State may be taxed in that 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 be taxed in that
other State. Article 17 : Artistes
and Sportspersons - 1. Notwithstanding the provisions of Articles 14
and 15, the 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 sportsperson, 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 sportsperson in his capacity as such accrues
not to the entertainer or sportsperson 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
sportsperson 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 sportspersons if the visit to that State is substantially supported by
public funds of one or both of the Contracting States or the activity is
exercised within the framework of cultural or sports co-operation agreement
between the Contracting States. In such a case, the income is taxable only in
the Contracting State of which the entertainer or sportsperson is a resident. Article 18 : Pensions
and other payments - 1. Subject to the provisions of paragraph 2 of
Article 19, pensions and other similar remuneration and annuities paid to a
resident of a Contracting State shall be taxable only in that State. 2. The term annuity means a stated sum payable
periodically at stated times during life or during a specified or ascertainable
period of time under an obligation to make the payments in return for adequate
and full consideration in money or moneys worth. 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 other State and the individual is a
resident of that other 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
- 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 for an amount not
exceeding the amount which is exempt from tax under the laws of that other
Contracting State for 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 reasonably 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 a 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 two years 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: (a) the teaching or research assignment should be approved by the
Governments of the Contracting States; (b) approved institution means an institution which has been approved
in this regard by the Government 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
Agreement 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 provision 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 or any sort of gambling or
betting of any form or nature whatsoever, such income may be taxed in the
other Contracting State. Article 23 : Method
for elimination of double taxation - 1. Where a resident of a
Contracting State derives income which, in accordance with the provisions of
this Agreement, may be taxed in the other Contracting State, the
first-mentioned State shall allow as a deduction from the tax on the income of
that resident, an amount equal to the income-tax paid in that other State. 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 that other State. 2. In the case of India, the tax payable in the
Contracting State mentioned in paragraph 1 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. 3. Where in accordance with any provision of the
Agreement income derived by a resident of a Contracting State is exempt from
tax in that State, such State may nevertheless, in calculating the amount of
tax on the remaining income of such resident, take into account the exempted
income. 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
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, nor as being in conflict with the provisions
of paragraph 3 of Article 7 of this Agreement. This provision shall not be
construed as obliging a Contracting State to grant 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 paragraph 1 of
Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12 apply,
interest, royalties and other disbursements 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. 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 Agreement, 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 he 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 Agreement. 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 this Agreement. Any
agreement reached shall be implemented notwithstanding any time limits in the
domestic law of the Contracting State. 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 Agreement. They
shall also consult each other for the elimination of double taxation in cases
not provided for in the Agreement. 4. The competent authorities of the Contracting
States may communicate with each other directly, including through a joint
commission consisting of themselves or their representatives, for the purpose
of reaching an agreement in the sense of the preceding paragraphs. Article 26 : Exchange
of information - 1. The competent authorities of the Contracting
States shall exchange such information (including certified copies of
documents) as is necessary for carrying out the provisions of this Agreement or
of the domestic laws of the Contracting State concerning taxes covered by the
Agreement, insofar as the taxation thereunder is not contrary to the Agreement.
The exchange of information is not restricted by Article 1. Any information
received by the competent authority of 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 to which the Agreement applies and shall be used 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 the competent authority of a Contracting State
the obligation: (a) to carry out administrative measures at variance with the laws or administrative
practice of that or of the other Contracting State; (b) to supply information (including certified copies of 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 Agreement 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
and consular officials - Nothing in this Agreement shall affect the fiscal
privileges of diplomatic or consular officials 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 Agreement. It shall
enter into force thirty days after the date or receipt of the latter of the
notifications. 2. The provisions of this Agreement 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 Agreement enters into force; and (b) in Kyrgyzstan : (i) in respect of taxes withheld at source, in relation to taxable
amount paid on or after the first day of January following the calendar year in
which the Agreement enters into force; (ii) in respect of other Kyrgyz taxes in relation to profits and income
arising in the calendar year following the calendar year in which the Agreement
enters into force and in subsequent calendar years. Article 30 : Termination
- This Agreement shall remain in force until terminated by one of the
Contracting States. Either Contracting State may terminate the Agreement,
through diplomatic channels, by giving written notice of termination at least
six months before the end of any calendar year after the expiration of five
years from the date of entry into force of the Agreement. In such event, the
Agreement 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; and (b) in Kyrgyzstan : (i) in respect of taxes withheld at source, in relation to taxable
amount paid on or after the first day of January following the calendar year in
which the notice of termination is given; (ii) in respect of other Kyrgyz taxes in relation to profits and income
arising in the calendar year following the calendar year in which the notice of
termination is given and in subsequent calendar years. In witness
whereof, the undersigned, being duly authorized thereto, have signed this
Agreement. Done in
duplicate at New Delhi, this thirteenth day of April, 1999, in Hindi, Kyrgyz,
Russian and English languages, all four texts being equally authentic. In case
of divergence between the texts, the English text shall prevail. Protocol At the signing
of the Agreement between the Government of the Republic of India and the
Government of the Kyrgyz Republic for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income and on capital,
the undersigned have agreed that the following shall form an integral part of
the Agreement. 1. With reference to Article 6 it is understood
that income from immovable property may be taxed in both the Contracting
States. 2. With reference to Article 11 paragraph 3(i)
it is understood that Government in the case of India shall include a political
sub-division. 3. With reference to Article 11 paragraph 6 and
Article 12 paragraph 5 it is understood that in the case of India interest,
royalties or fees for technical services shall be deemed to arise in a
Contracting State if the payer is a political sub-division of that State. In witness
whereof, the undersigned, being duly authorized thereto, have signed this
Protocol. Done in duplicate at New Delhi, this thirteenth day of April, 1999, in Hindi, Kyrgyz, Russian and English languages, all four texts being equally authentic. In case of divergence between the texts, the English text shall prevail.
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