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Qatar 1617-1618. Agreement for avoidance of double taxation and prevention of fiscal evasion with Qatar Whereas the annexed Agreement between the Government of the Republic of
India and the Government of the State of Qatar for the avoidance of double
taxation and the prevention of fiscal evasion with respect to taxes on income
has come into force on the 15th day of January, 2000, on the notification by
both the Contracting States to each other, under Article 29 of the said
Agreement, of the completion of the procedures required by their respective
laws for bringing into force 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. G.S.R. 96(E), dated 8-2-2000. annexure Agreement between the Government of the
Republic of The Government of the Republic of India and the Government of the State
of Qatar, 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 cooperation between the two countries,
have agreed as follows : Article 1 : Persons Covered - 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 or of its political
sub-divisions or local authorities irrespective of the manner in which they are
levied. 2. The existing taxes to which the Agreement shall apply are in
particular : (a) In India : the
income-tax, including any surcharge thereon; and (hereinafter
referred to as Indian tax); (b) In the State of Qatar : the
Income-tax (hereinafter
referred to as Qatari Tax) 3. 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 para 2. The
competent authorities of the Contracting States 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 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 The State of Qatar means the
territory of the State of Qatar as well as its territorial sea and its continental
shelf over which it exercises sovereign rights and jurisdiction according to
the Qatari Law and in accordance with International Laws. (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 States; (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 States; (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 the State of Qatar : the Minister of Finance, Economy and
Commerce 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 in the Income-tax
Act, 1961 (43 of 1961); (ii) in the case of the State of Qatar taxable year as defined in
Qatar Income-tax Law; (j) the term tax means Indian tax or Qatari 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 State of Qatar 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. This term, however, does not include any person
who is liable to tax in that State in respect only of income from sources in
that State. 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 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, construction, assembly
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 or 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 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 paragraph; 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 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 and aircraft 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 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 : Shipping and air transport - 1. Profits derived by an enterprise of a
Contracting State from the operation of ships or aircraft in international
traffic shall be taxable only in that State. 2. In the case of the State of Qatar for the
purposes of the preceding paragraph the ships and aircraft shall mean Gulf Air
Company and United Arab Shipping Company so long as the State of Qatar owns a
share in these companies or any other air or sea transport enterprise
designated by the Government of the State of Qatar. 3. 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. 4. 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 shall not apply in relation to
such interest. 5. 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 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 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. However, in such circumstances a
Contracting State shall not adjust the profits of an enterprise after the
expiry of the time limits provided under its statute of limitations. 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 : (a) 5 per cent of the gross amount of the dividends if the beneficial
owner is a company which owns at least ten per cent of the shares of the
company paying the dividend; and (b) 10 per cent of the gross amount of the dividends in all other cases. 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. 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 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 10 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 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
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 in
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 the laws of each Contracting State,
the 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 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 shares other than
those mentioned in paragraph 4 in 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 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, 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 in international traffic, by an enterprise of a
Contracting State may be taxed in that State. 4. Notwithstanding the preceding provisions of
this Article, the two Contracting States shall exempt salaries, wages,
allowances and perquisites from tax in the case of employees of a designated
national air transport carrier of either Contracting State provided that they
are nationals of the other 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 Sportspersons - 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 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 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 sportsperson is a resident. Article 18 :
Pensions - 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. 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 - 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 exempted 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$ 1000 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. 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 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 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 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 provisions
of Article 7 or Article 14, as the case may be, shall apply. 3. Notwithstanding the provisions of paragraphs 1
and 2, items of income of a resident of a Contracting State not dealt with in
the foregoing articles of this Agreement and arising in the other Contracting
State may also be taxed in that other State. Article 23 : 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 his case comes under paragraph
1 of Article 25, 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 the Agreement. 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 Agreement. They
may 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 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 24 :
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 Agreement. 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 Agreement, may be taxed in the State of Qatar, India shall allow as a
deduction from the tax on the income of that resident an amount equal to the
income-tax paid in the State of Qatar 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 the State of Qatar. 3. In the case of the State of Qatar double
taxation shall be eliminated as follows : Where a
resident of the State of Qatar derives income which, in accordance with the
provisions of this Agreement, may be taxed in India, the State of Qatar 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. Article 25 :
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 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. 3. Nothing in this Article shall 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
nationals. 4. Nothing in this Article shall be construed as
imposing a legal obligation on a Contracting State to extend to the residents
of the other Contracting State the benefit of any treatment preference or
privilege which may be accorded to any other State or its residents through
agreements to which the first-mentioned Contracting State may be a party. 5. 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. 6. 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.
Similarly, any debts of an enterprise of
a Contracting State to a resident of the other Contracting State shall, for the
purpose of determining the taxable capital of such enterprise, be deductible
under the same conditions as if they had been contracted to a resident of the
first-mentioned State. 7. In this Article, the term taxation means
taxes which are the subject of this Agreement. 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 Agreement or of the domestic laws of the Contracting States
concerning taxes covered by the Agreement insofar as the taxation thereunder is
not contrary to the Agreement 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 Agreement. 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 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. Amount collected by the competent authority of
a Contracting State pursuant to the 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 Agreement 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 Agreement. 2. This Agreement shall enter into force thirty
days after the receipt of the latter of the notifications referred to in paragraph
1 of this Article. 3. The provisions of this Agreement shall have
effect in India and in the State of Qatar in respect of income arising on or
after the first day of the fiscal year next following the calendar year in
which the Agreement enters into force. Article 30 :
Termination - This Agreement
shall remain in force until terminated by a Contracting State. Either
Contracting State may terminate the Agreement, through diplomatic channels, by
giving 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
in India and the State of Qatar, in respect of income arising on or after the
first day of the fiscal year 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
Agreement. Signed in two
originals at New Delhi this seventh 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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