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Trinidad
and Tobago 1631. Agreement for avoidance
of double taxation and prevention of fiscal evasion with Trinidad and Tobago Whereas
the annexed Convention between the Government of the Republic of India and the
Government of the Republic of Trinidad and Tobago for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income, has entered into force on the
thirteenth day of October, 1999, thirty days after the receipt of the later of
the notifications by both the Contracting States to each other of the
completion of the procedures required under their laws for bringing into force
of the said Convention in accordance with article 29 of the said Convention. Now,
therefore, in exercise of the powers conferred by section 90 of the
Income-tax Act, 1961 (43 of 1961), the Central Government hereby directs that
all the provisions of the said Convention shall be given effect to in the Union
of India. Notification No. : GSR 720(E), dated 26-10-1999. annexure Convention between the Government of the Republic of India and The Government of the Republic of India and
the Government of the Republic of Trinidad and Tobago desiring to conclude a
Convention for the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income and with a view to promoting economic
co-operation between the two countries have agreed as follows : Article 1 : Personal Scope - This Convention shall apply to persons who
are residents of one or both of the Contracting States. Article 2 : Taxes Covered - 1. This
Convention shall apply to taxes on income imposed on behalf of a Contracting
State or of its political sub-divisions or local authorities irrespective of
the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total
income or on elements of income including taxes on gains from the alienation of
movable or immovable property, taxes on the total amounts of wages or salaries
paid by enterprises, as well as taxes on capital appreciation. 3. The existing taxes which are the subject of this Convention are : (a) in the case of Trinidad and Tobago, the corporation tax, the
income-tax, the unemployment levy and the petroleum profits tax (hereinafter
referred to as Trinidad and Tobago tax); (b) in the case of India, the income-tax, including any surcharge
thereon (hereinafter referred to as Indian tax). 4. This Convention shall apply also to any
identical or substantially similar taxes which are imposed by a Contracting
State after the date of signature of this Convention in addition to, or in
place of, the 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 Convention, unless the
context otherwise requires : (a) the term Trinidad and Tobago means the Archipelagic State of
Trinidad and Tobago, comprising the several islands of Trinidad and Tobago, its
archipelagic waters, territorial sea and the airspace thereof, together with
the adjacent submarine areas of the Exclusive Economic Zone and the continental
shelf beyond the territorial sea over which Trinidad and Tobago exercises
sovereign or other rights in accordance with the laws of Trinidad and Tobago
and with international law. (b) 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; (c) the terms a Contracting State and the other Contracting State
mean the Republic of Trinidad and Tobago or the Republic of India, as the
context requires; (d) 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; (e) the term company means any body corporate or any entity which is
treated as a body corporate for tax purposes; (f) 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; (g) the term international traffic means any transport by a ship or
aircraft operated by an enterprise which is a resident of a Contracting State,
except when the ship or aircraft is operated solely between places in the other
Contracting State; (h) the term competent authority means : (i) in the case of Trinidad and Tobago, the Minister to whom the
responsibility for Finance is assigned or his authorized representative; (ii) in the case of India, the Central Government in the Ministry of
Finance (Department of Revenue) or their authorised representative; (i) 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; (j) the term fiscal year means : (i) in the case of Trinidad and Tobago, the year of income as
defined in section 2(1) of the Income-tax Act, Chapter 75 : 01 ; (ii) in the case of India, previous year as defined under section 3 of
the Income-tax Act, 1961. (k) the term tax means Trinidad and Tobago tax or Indian tax, as the
context requires, but shall not include any amount which is payable in respect
of any default or omission in relation to the taxes to which this Convention
applies or which represents a penalty or fine imposed relating to those taxes. 2. In the application of this Convention by a
Contracting State any term not defined herein shall, unless the context
otherwise requires, have the meaning which it has under the laws of that
Contracting State relating to the taxes which are the subject of this
Convention. Article 4 : Resident
- 1. For purposes of this Convention, the term resident of a
Contracting State means any person who, under the laws of that State is liable
to tax therein by reason of his domicile, residence, place of management or any
other criterion of a similar nature. 2. Where by reason of the provisions of paragraph
1 and 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 Convention the term permanent
establishment means a fixed place of business through which the business of an
enterprise is wholly or partly carried on. 2. The term permanent establishment includes
especially : (a) a place of management; (b) a branch; (c) an office; (d) a factory; (e) a workshop; (f) a warehouse in relation to a person providing storage facilities
for others; (g) a sales outlet; (h) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources; (i) a drilling rig or ship used for, or in connection with, the
exploration or development of natural resources; (j) a dredging project; (k) a farm, plantation or other place where agricultural, forestry,
plantation or related activities are carried on; and (l) a building site or construction or assembly project or supervisory
activities in connection therewith only if such site, project or activity last
more than nine months. 3. Notwithstanding the preceding provisions of
this Article, the term permanent establishment shall be deemed not to include
: (a) the use of facilities solely for the purpose of storage, display
or delivery of goods or merchandise belonging to the enterprise ; (b) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of storage, display or delivery; (c) the maintenance of a stock of goods or merchandise belonging to the
enterprise solely for the purpose of processing by another enterprise; (d) the maintenance of a fixed place of business solely for the purpose
of purchasing goods or merchandise or of collecting information, for the
enterprise; (e) the maintenance of a fixed place of business solely for the purpose
of carrying on, for the enterprise, any other activity of a preparatory or
auxiliary character; (f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in sub-paragraphs (a) to (e),
provided that the overall activity of the fixed place of business resulting
from this combination is of a
preparatory or auxiliary character. 4. Notwithstanding the provisions of paragraphs 1
and 2, where a person, other than an agent of an independent status to whom
paragraph 6 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 3 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. 5. 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 6 applies. 6. 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 person is 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. 7. 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 laws 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, motor vehicles
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 Convention, then the provisions
of those Articles shall not be affected by the provisions of this article. Article 8 : Shipping and Air Transport - 1. Profits
derived by an enterprise of a Contracting State from the operation of ships or
aircraft in international traffic shall be taxable only in that 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 in 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
earned incidentally 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. 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 Contacting 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 appropriate
adjustment to the amount of the tax charged therein on those profits. In
determining such adjustment, due regard shall be had to the other provisions of
this Convention and the competent authorities of the Contracting States shall,
if necessary, consult each other. Article 10 : Dividends - 1. Dividends paid
by a company which is a resident of a Contracting State to a resident of the
other Contracting State may also be taxed in that other State. 2. However, such dividends may also be taxed in
the Contracting State of which the company paying the dividends is a resident
and according to the laws of that State, but if the recipient is the beneficial
owner of the dividends the tax so charged shall not exceed 10 per cent of the
gross amount of the dividends. This paragraph shall not affect the taxation of
the company in respect of the profits out of which the dividends are paid. 3. The term dividends as used in this Article
means income from shares or other rights, not being debt-claims, participating
in profits, as well as income from other corporate rights which is subjected to
the same taxation treatment as income from shares by the laws of the state of
which the company making the distribution is a resident. 4. The provisions of paragraphs 1 and 2 shall not
apply if the beneficial owner of the dividends, being a resident of a Contracting
State, carries on business in the other Contracting State of which the company
paying the dividends is a resident, through a permanent establishment situated
therein, or performs in that other state independent personal services from a
fixed base situated therein, and the holding in respect of which the dividends
are paid is effectively connected with such permanent establishment or fixed
base. In such case the provisions of Article 7 or Article 14, as the case may
be, shall apply. 5. Where a company which is a resident of a
Contracting State derives profits or income from the other Contracting State,
that other state may not impose any tax on the dividends paid by the company,
except insofar as such dividends are paid to a resident of that other state or
insofar as the holding in respect of which the dividends are paid is
effectively connected with a permanent
establishment or a fixed base situated in that other state, nor subject the
companys undistributed profits to a tax on the companys undistributed
profits, even if the dividends paid or the undistributed profits consist wholly
or partly of profits or income arising in such other state. Article 11 : Interest - 1. Interest arising
in a Contracting State and paid to a resident of the other Contracting State
may be taxed in that other state. 2. However, such interest may also be taxed in
the Contracting State in which it arises, and according to the laws of that
State, but if the recipient is the beneficial owner of the interest the tax so
charged shall not exceed 10 per cent of the gross amount of the interest. The
competent authorities of the Contracting States shall by mutual agreement
settle the mode of application of this limitation. 3. Notwithstanding the provisions of paragraph 2,
interest arising in a Contracting State shall be exempt from tax in that State
provided it is derived and beneficially owned by (i) the Government, a political sub-division or a local authority of
the other Contracting State; or (ii) (a) in the case of Trinidad and Tobago, the Central Bank of
Trinidad and Tobago, the Agricultural Development Bank, the Export Insurance
Company, the National Housing Authority, the National Insurance Board, the Home
Mortgage Bank, the Deposit Insurance Corporation, the Small Business
Development Company, the Development Finance Limited and the Trinidad and
Tobago Mortgage Finance Company ; (ii) (b) in the case of India, the Reserve Bank of India, the
Industrial Finance Corporation of India, the Industrial Development Bank of
India, the Export Import Bank of India, the National Housing Bank, the Small
Industries Development Bank of India and the Industrial Credit and Investment
Corporation of India (ICICI) ; or (iii) any other institution or agency as 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, but shall not include any item which is treated as a
distribution under the provisions of Article 10 of this Convention. 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 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 payment shall remain taxable according to the
laws of each Contracting State, due regard being had to the other provisions of
this Convention. Article 12 : Royalties
and Fees for Technical Services - 1. Royalties or fees for technical
services arising in a Contracting State and paid to a resident of the other
Contracting State may be taxed in that other State. 2. However, such royalties 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 a
literary, artistic or scientific work including cinematograph films or
recordings on any means of reproduction for use in connection with television
or radio broadcasting, any patent, trade mark, design or model, plan, know-how,
computer software programme, secret formula or process, or any industrial,
commercial or scientific equipment or for information concerning industrial,
commercial or scientific experience ; (b) The term fees for technical services means payment of any kind in
consideration for the rendering of any managerial, technical or consultancy
services including the provision of services by technical or other personnel
but does not include payments for services mentioned in Articles 14 and 15 of
this Convention. 4. The provisions of paragraphs 1 and 2 shall not
apply if the beneficial owner of the royalties or fees for technical services
being a resident of a Contracting State, carries on business in the other
Contracting State, in which the royalties or fees for technical services arise,
through a permanent establishment situated therein, or performs in that other
State independent personal services from a fixed base situated therein, and the
right or property in respect of which the royalties or fees for technical
services are paid is effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or Article 14, as the
case may be, shall apply. 5. Royalties or fees for technical services shall
be deemed to arise in a Contracting State when the payer is that State itself,
a political sub-division, a local authority or a resident of that State. Where,
however, the person paying the royalties or fees for technical services,
whether he is a resident of a Contracting
State or not, has in a Contracting State a permanent establishment or a fixed
base in connection with which the liability to pay the royalties or fees for
technical services was incurred, and such royalties or fees for technical
services are borne by such permanent establishment, or fixed base then such
royalties or fees for technical services shall be deemed to arise in the State
in which the permanent establishment or fixed base is situated. 6. Where, by reason of a special relationship
between the payer and the beneficial owner or between both of them and some
other person, the amount of the royalties or fees for technical services
having regard to the use, right or information for which they are paid, exceeds
the amount which would have been agreed upon by the payer and the beneficial
owner in the absence of such relationship, the provisions of this Article shall
apply only to the last mentioned amount. In such case, the excess part of the
payments shall remain taxable according to the laws of each Contracting State,
due regard being had to the other provisions of this Convention. Article 13 : Capital Gains - 1. Gains
derived by a resident of a Contracting State from the alienation of immovable
property referred to in Article 6 and situated in the other Contracting State
may also be taxed in that other State. 2. Gains from the alienation of movable property
forming part of the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting State or of
movable property pertaining to a fixed base available to a resident of a
Contracting State in the other Contracting State for the purpose of performing
independent personal services, including such gains from the alienation of
such a permanent establishment (alone or with the whole enterprise) or of such
fixed base, may also be taxed in that other State. 3. Gains derived by an enterprise of a
Contracting State from the alienation of ships or aircraft operated in
international traffic or movable property pertaining to the operation of such
ships, aircraft shall be taxable only in that State. 4. Gains from the alienation of shares of the
capital stock of a company the property of which consists directly or indirectly
principally of immovable property situated in a Contracting State may be taxed
in that State. 5. Gains from the alienation of 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; or (c) if the remuneration for his activities in the other Contracting
State is paid by a resident of that Contracting State or is borne by a
permanent establishment or a fixed base situated in that Contracting State and
exceeds in the fiscal year a sum of Rupees 40,000 or its equivalent in Trinidad
and Tobago currency. 2. The term professional services includes
especially independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of medical practitioners,
lawyers, engineers, architects, dentists and accountants. Article 15 : Dependent
Personal Services - 1. Subject
to the provisions of Articles 16, 18 and 19 salaries, wages, emoluments 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 also 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. 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
also 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 and Social Security Payments -
1. Subject to the provisions of
paragraph 2 of Article 19, pensions and other similar remuneration paid in
consideration of past employment to a resident of a Contracting State and any
annuity paid to such a resident may also be taxed in that State. 2. Notwithstanding the provisions of paragraph 1,
pensions paid and other payments made under a public scheme which is part of
the social security system of a Contracting State or a political sub-division
or a local authority thereof shall be taxable only in that State. Article 19 : Government Service - 1. (a)
Remuneration, other than a pension, paid by a Contracting State or a political
sub-division or a local authority thereof to an individual in respect of
services rendered to that State or sub-division or authority shall be taxable
only in that State. (b)
However, such remuneration shall be taxable only in the other Contracting State
if the services are rendered in that other 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
other State. 3. The provisions of Articles 15, 16 and 18 shall
apply to remuneration and pensions in respect of services rendered in connection
with a business carried on by a Contracting State or a political sub-division
or a local authority thereof. Article 20 : Students and apprentices - 1. A student of 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, besides grants, loans and
scholarships, 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, provided that such employment is
directly related to his studies or is undertaken for the purpose of his
maintenance. 2. The benefit of this Article shall extend only
for such period of time as may be reasonable or customarily required to
complete the education or training undertaken, but in no event shall any
individual have the benefits of this Article for more than seven consecutive
years from the date of his first arrival in that other Contracting State. Article 21 : Professors, Teachers and Research Scholars
- 1. A professor, teacher or research scholar 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
institutions means an institution which has been approved in this regard by
the competent authority of the State in which the institution is located. Article 22 : Other Income - 1. Items of
income of a resident of a Contracting State, wherever arising, not dealt with
in the foregoing Articles of this Convention shall be taxable only in that
State. 2. The provisions of paragraph 1 shall not apply
to income, other than income from immovable property as defined in paragraph 2
of Article 6, (a) 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 ; (b) if the resident of a Contracting State derives income from sources
within the other Contracting State in the form of lotteries, crossword puzzles,
races including horse races, card games and other games of any sort or gambling
or betting of any form or nature whatsoever, such income may be taxed in, the
other Contracting State. 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 Convention and arising in the other Contracting
State may also be taxed in that other State. Article 23 : Elimination of Double Taxation - 1.
The laws in force in either of the Contracting State will continue to
govern the taxation of income in the respective Contracting States except where
provisions to the contrary are made in this Convention. 2. In the case of Trinidad and Tobago, double
taxation shall be eliminated as follows : Where a
resident of Trinidad and Tobago derives income which, in accordance with the
provisions of this Convention, may be taxed in India, Trinidad and Tobago shall
allow as a deduction from the tax on the income of that resident an amount
equal to the income-tax paid in India, whether directly or by deduction at
source. 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. 3. In the case of India, double taxation shall be
eliminated as follows : Where a
resident of India derives income which, in accordance with the provisions of
this Convention, may be taxed in Trinidad and Tobago, India shall allow as a deduction from the tax on
the income of that resident an amount equal to the income-tax paid in Trinidad
and Tobago, whether directly or by deduction at source. 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
Trinidad and Tobago. 4. The tax payable in the Contracting State
mentioned in paragraphs 2 and 3 of this Article shall be deemed to include the
tax which would have been payable but for the tax incentives granted under the
laws of the Contracting State and which are designed to promote economic
development. 5. Income which in accordance with the provisions
of this Convention, is not to be subjected to tax in a Contracting State, may
be taken into account for calculating the rate of tax to be imposed in that
Contracting State. Article 24 : Non-discrimination - 1. Nationals
of a Contracting State shall not be subjected in the other Contracting State to
any taxation or any requirement connected therewith, which is other or more
burdensome than the taxation and connected requirements to which nationals of
that other State in the same circumstances 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 Convention. 3. Nothing in this Article shall be construed as
obliging a Contracting State to grant to the residents of the other
Contracting State any personal allowances, reliefs or deductions for taxation
purposes on account of civil status or family responsibilities which it grants
to its own residents. 4. Except where the provisions of Article 9,
paragraph 7 of Article 11 or paragraph 6 of Article 12 apply, interest,
royalties and fees for technical services 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. 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. The provisions of this Article shall,
notwithstanding the provisions of Article 2, apply to taxes of every kind and
description. Article 25 : Mutual Agreement Procedure - 1. Where
a person considers that the action of one or both of the Contracting States
result or will result for him in taxation not in accordance with the
provisions of this Convention, he may, irrespective of the remedies provided by
the domestic law of those States, present his case to the competent authority
of the Contracting State of which he is a resident or, if his case comes under
paragraph 1 of Article 24, to that of the Contracting State of which he is a
national. The case must be presented within three years from the first
notification of the action resulting in taxation not in accordance with the
provisions of this Convention. 2. The competent authority shall endeavour if the
objection appears to it to be justified and if it is not itself able to arrive
at a satisfactory solution, to resolve the case by mutual agreement with the
competent authority of the other Contracting State with a view to the avoidance
of taxation which is not in accordance with this Convention. Any agreement
reached shall be implemented notwithstanding any time limits in the domestic
law of the Contracting States. 3. The competent authorities of the Contracting
States shall endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of this Convention. They
may also consult together for the elimination of double taxation in cases not
provided for in this Convention. 4. The competent authorities of the Contracting
States may communicate with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs. The competent authorities
shall, through consultations, develop appropriate bilateral procedures,
conditions, methods and techniques for the implementation of the mutual
agreement procedure provided for in this Article. Article 26 : Exchange of Information - 1. The
competent authorities of the Contracting States shall exchange such
information (including documents), as is necessary for carrying out the
provisions of this Convention or of the domestic laws of the Contracting States
concerning taxes covered by this Convention insofar as the taxation thereunder
is not contrary to this Convention in particular for the prevention of fraud
or evasion of such taxes. The exchange of information is not restricted by
Article 1. Any information received by a Contracting State shall be treated as
secret in the same manner as information obtained under the domestic laws of
that State and shall be disclosed only to persons or authorities (including
courts and administrative bodies) involved in the assessment or collection of,
the enforcement or prosecution in respect of, or the determination of appeals
in relation to, the taxes covered by this Convention. Such persons or
authorities shall use the information only for such purposes. They may disclose
the information in public court proceedings or in judicial decisions. 2. In no case shall the provisions of paragraph 1
be construed so as to impose on a Contracting State the obligation : (a) to carry out administrative measures at variance with the laws and
administrative practice of that or of the other Contracting State; (b) to supply information or documents which are 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 or documents 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 : Diplomatic Agents and Consular Officers -
Nothing in this Convention shall affect the fiscal privileges of diplomatic
agents or consular officers under the general rules of international law or
under the provisions of special agreements. Article 28 : Collection Assistance - 1. The
Contracting States undertake to lend assistance to each other in the collection
of taxes to which this Convention relate, 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 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 29 : Entry into Force - 1. The
Contracting States shall notify each other in writing, through diplomatic
channels, of the completion of the procedures required by the respective laws
for the entry into force of this Convention. 2. This Convention shall enter into force thirty
days after the receipt of the later of the Notifications referred to in paragraph
1 of this Article. 3. The provisions of this Convention shall have
effect : (a) in Trinidad and Tobago : (i) in respect of taxes
withheld at source, to income paid or credit on or after first January in the
calendar year next following that in which this Convention enters into force; (ii) in respect of other taxes on income, to income in any taxable year
beginning on or after first January in the calendar year next following that
in which this Convention enters into force; and (b) in India, in respect of income derived in any fiscal year beginning
on or after the first day of April next following the calendar year in which
this Convention enters into force. Article 30 : Termination - This Convention shall
remain in force indefinitely until terminated by a Contracting State. Either
Contracting State may terminate this Convention, through diplomatic channels,
by giving notice of termination at least six months before the end of any
calendar year beginning after the expiration of five years from the date of
entry into force of this Convention. In such event, this Convention shall cease
to have effect : (a) in Trinidad and Tobago : (i) in respect of taxes withheld at source, to income paid on credited
on or after first January in the calendar year next following that in which the
notice is given ; (ii) in respect of other taxes on income, to income in any taxable year
beginning on or after first January in the calendar year next following that in
which the notice is given ; (b) in India, in respect of income derived in any previous year on or
after the first April next following the calendar year in which the notice is
given. In witness
whereof the undersigned, being duly authorised thereto, have signed this
Convention. Done in
duplicate at Port of Spain this 8th day of February, 1999 in English and Hindi
languages, both texts being equally authentic. In case of divergence, between
the texts, the English text shall be the operative one.
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