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2. Agreement for avoidance of
double taxation and prevention of fiscal evasion with Whereas the
annexed Convention between the Government of the Republic of India and the Government
of the Republic of Austria for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income, shall enter into
force on 5th September, 2001, thirty days after the exchange of Instrument of
Ratification as required by paragraph 2 of Article 28 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 Notification : No. GSR 682(E), dated 20-9-2001. Annexure Convention between the government of the
republic of India and the government of the republic of Austria for the
avoidance of double taxation and the prevention of fiscal evasion with respect
to taxes on income The Government
of the ARTICLE 1 : Persons Covered - 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 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 to which the Convention
shall apply are in particular : (a) in (i) the income-tax (die Einkommensteuer); (ii) the corporation tax (die Korperschaftsteuer); (hereinafter referred to as
Austrian taxes) (b) in the income-tax, including
any surcharge thereon imposed under the Income-tax Act, 1961 (43 of 1961); (hereinafter referred to as
Indian tax) 4. The Convention shall also apply to any
identical or substantially similar taxes which are imposed after the date of
signature of the Convention in addition to, or in place of, the existing taxes.
The competent authorities of the Contracting States shall notify each other of
any substantial 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 (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 (d) the term fiscal year means : (i) in relation of Austrian tax the calendar year; (ii) in relation to Indian tax the financial year
beginning on the first day of April; (e) the term tax means Austrian 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 imposed relating to those taxes; (f) the term person includes an individual, a company and any other
entity which is treated as a taxable unit under the taxation laws in force in
the respective Contracting States; (g) the term company means any body corporate or any entity which is
treated as a company or body corporate under the taxation laws in force in the
respective Contracting States; (h) 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; (i) the term competent authority means, (i) in (ii) in (j) the term national means : (i) any individual possessing the nationality of a
(ii) any legal person, partnership or association
deriving its status as such from the laws in force in a (k) the term international traffic means any transport by a ship or
aircraft operated by an enterprise of a 2. As regards the application of the Convention
by a Contracting State, any term not defined therein shall, unless the context
otherwise requires, have the meaning which it has under the law of that State
concerning the taxes to which the Convention applies. ARTICLE 4 : Resident - 1. For the purposes
of this Convention, the term resident of a Contracting State means any person
who, under the laws of that State, is liable to tax therein by reason of his
domicile, residence, place of management or any other criterion of a similar
nature, and also includes that State and any political sub-division or local
authority thereof. 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 or capital situated therein. 2. Whereby 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 only 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 only 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 only 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 only 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 endeavour to 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 only 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 mine, an oil or gas well, a quarry or any other place of
extraction of natural resources; (g) a sales outlet; (h) a warehouse in relation to a person providing storage facilities
for others; (i) a building site or construction, installation
or assembly project or supervisory activities in connection therewith, where
such site, project or activities (for the same or connected project, site or
activities) continue for a period of more than six months. 3. 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. 4. 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. 5. 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 State, 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 4 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. 6. An enterprise shall not be deemed to have a
permanent establishment in a 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 6 applies. 8. 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 2. The term immovable property shall have the
meaning which it has under the law of the 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 2. Subject to the provisions of paragraph 3,
where an enterprise of a Contracting State carries on business in the other
Contracting State through a permanent establishment situated therein, there
shall in each Contracting State be attributed to that permanent establishment
the profits which it might be expected to make if it were a distinct and
separate enterprise engaged in the same or similar activities under the same or
similar conditions and dealing wholly independently with the enterprise of
which it is a permanent establishment. 3. In determining the profits of a permanent
establishment, there shall be allowed as deductions expenses which are incurred
for the purposes of the permanent establishment, including executive and
general administrative expenses so incurred, whether in the State in which the
permanent establishment is situated or elsewhere, and according to the domestic
law of the Contracting State in which the permanent establishment is situated.
However, no such deduction shall be allowed in respect of amounts, if any paid
(otherwise than towards reimbursement of actual expenses) by the permanent
establishment to the head office of the enterprise or any of its other offices,
by way of royalties, fees or other similar payments in return for the use of
patents, know-how or other rights, or by way of commission or other charges,
for specific services performed or for management, or, except in the case of a
banking enterprise, by way of interest on moneys lent to the permanent
establishment. Likewise, no account shall be taken, in the determination of the
profits of a permanent establishment, for amounts charged (otherwise than
towards reimbursement of actual expenses), by the permanent establishment to
the head office of the enterprise or any of its other offices, by way of
royalties, fees or other similar payments in return for the use of patents,
know-how or other rights, or by way of commission or other charges, for
specific services performed or for management, or, except in the case of a
banking enterprise by way of interest on moneys lent to the head office of the
enterprise or any of its other offices. 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 2. Profits derived by an enterprise referred to
in paragraph 1 which is a resident of a Contracting State from the use,
maintenance or rental of containers (including trailers and other equipment for
the transport of containers) used for the transport of goods or merchandise in
international traffic shall be taxable only in that Contracting State unless
the containers are used solely within the other Contracting State. 3. For the purposes of this Article, interest on
funds connected with the operation of 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 (b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a 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 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 beneficial owner of the
dividends is a resident of the other Contracting State, 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 2. However, such interest may also be taxed in
the 3. Notwithstanding the provisions of paragraph
2, (a) interest arising in a (i) the State, a political sub-division or a local
authority of the other (ii) the Central Bank of the other (iii) in the case of (iv) in the case of (b) interest arising in a Contracting State shall be exempt from tax in
that Contracting State to the extent approved by the State if it is derived and
beneficially owned by any person [other than a person referred to in
sub-paragraph (a)] who is a resident of the other Contracting State
provided that the transaction giving rise to the debt-claim has been approved
in this regard by the first-mentioned Contracting State. 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 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 ARTICLE 12 : Royalties and fees for technical services
- 1. Royalties and fees for technical services arising in a 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 beneficial owner of the
royalties and fees for technical services is a resident of the other
Contracting State, the tax so charged shall not exceed 10 per cent of the gross
amount of the royalties and fees for technical services. 3. 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 or films or tapes used for radio or television
broadcasting, any patent, trade mark, design or model, plan, secret formula or
process, or for the use of, or/the right to use, industrial, commercial or
scientific equipment, or for information concerning industrial, commercial or
scientific experience. 4. The term fees for technical services as
used in this Article means payments of any amount to any person other than
payments to an employee of a person making payments, in consideration for the
services of a managerial, technical or consultancy nature, including the
provision of services of technical or other personnel. 5. 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. 6. Royalties or fees for technical services
shall be deemed to arise in a 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 royalties or fees for technical services 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 ARTICLE 13 : Capital Gains - 1. Gains
derived by a resident of a 2. Gains from the alienation of movable property
forming part of the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting State or of
movable property pertaining to a fixed base available to a resident of a
Contracting State in the other Contracting State for the purpose of performing
independent personal services, including such gains from the alienation of such
a permanent establishment (alone or with the whole enterprise) or of such fixed
base, may be taxed in that other State. 3. Gains from the alienation of ships or
aircraft operated in international traffic or movable property pertaining to
the operation of such ships or aircraft, shall be taxable only in their 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 5. Gains from the alienation of shares other
than those mentioned in paragraph 4 in a company which is a resident of a 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 ARTICLE 14 : Independent Personal Services - 1.
Income derived by an individual who is a resident of a Contracting State from
the performance of professional services or other independent activities of a
similar 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 Contracting State is for a period or
periods amounting to or exceeding in the aggregate 183 days in any period of
twelve months; 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
independent scientific, literary, artistic, educational or teaching activities
as well as the independent activities of physicians, surgeons, lawyers,
engineers, architects, dentists and accountants. ARTICLE 15 : Dependent personal services - 1.
Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries, wages
and other similar remuneration derived by a resident of a 2. Notwithstanding the provisions of paragraph
1, remuneration derived by a resident of a (a) the recipient is present in the other State for a period or periods
not exceeding in the aggregate 183 days in any period of twelve months, 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 ARTICLE 16 : Directors fees - Directors fees and
other similar payments derived by a resident of a ARTICLE 17 : Entertainers and sportspersons - 1.
Notwithstanding the provisions of Articles 7, 14 and 15, income derived by a
resident of a 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 but to another person, that
income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed
in the 3. Notwithstanding the provisions of paragraph
1, income derived by an entertainer or a sportsperson who is a resident of a
Contracting State from personal activities as such exercised in the other
Contracting State, shall be taxable only in the first-mentioned Contracting
State, if the activities in the other Contracting State are supported wholly or
substantially from the public funds of the first-mentioned Contracting State,
including any of its political sub-divisions or local authorities. 4. Notwithstanding the provisions of paragraph 2
and Articles 7, 14 and 15, where income in respect of personal activities
exercised by an entertainer or a sportsperson in his capacity as such in a
Contracting State accrues not to the entertainer or sportsperson but to another
person, that income shall be taxable only in the other Contracting State, if
that other person is supported wholly or substantially from the public funds of
that other State, including any of its political sub-divisions or local
authorities. ARTICLE 18 : Pensions and annuities - 1.
Any pension, other than a pension referred to in Article 19, or any annuity
derived by a resident of a 2. The term pension means a periodic payment
made in consideration of past services or by way of compensation for injuries
received in the course of performance of services. 3. The term annuity means a stated sum payable
periodically at stated times during life or during a specified or ascertainable
period of time, under an obligation to make the payments in return for adequate
and full consideration in money or moneys worth. ARTICLE 19 : Government service - 1. (a)
Remuneration, other than a pension, paid by a Contracting State or a political
sub-division or a local authority thereof to an individual in respect of
services rendered to that State or sub-division or authority shall be taxable
only in that State. (b)
However, such remuneration shall be taxable only in the other Contracting State
if the services are rendered in that 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. The provisions of paragraph 1 of this Article
shall also apply to remuneration derived by members of permanent delegations of
foreign commerce of a 3. (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 4. The provisions of Articles 15, 16, 17 and 18
shall apply to remuneration and pensions, in respect of services rendered in
connection with a business carried on by a ARTICLE 20 : Students - 1. A student or
business apprentice who is or was a resident of one of the Contracting States
immediately before visiting the other Contracting State and who is present in
that other State solely for the purpose of his education or training shall be
exempt from tax in that other State on : (a) payments made to him by persons residing outside that other State
for the purposes of his maintenance, education or training; and (b) remuneration which he derives from an employment which he exercises
in the other Contracting State for a period or periods not exceeding in the
aggregate 183 days in any period of twelve months if the employment is directly
related to his studies or apprenticeship. 2. The benefits 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 that five consecutive
years from the date of his first arrival in that other State. ARTICLE 21 : Professors, Teachers and Research
Scholars - 1. A professor or a teacher who is or was a resident of
one 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 paragraph 1 approved
institution means an institution which has been approved in this regard by the
competent authority of the concerned ARTICLE 22 : Other Income - 1. Subject to
the provisions of paragraph 2, items of income of a resident of a 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 service from 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 ARTICLE 23 : Elimination of Double Taxation - 1.
The laws in force in either of the Contracting States shall continue to govern
the taxation of income in the respective 2. In the case of (a) Where a resident of (b) Where a resident of Austria derives items of income which, in
accordance with the provisions of paragraph 2 of Articles 10, 11, 12, paragraphs
4 and 5 of Article 13 and paragraph 3 of Article 22 may be taxed in India,
Austria shall allow as a deduction from the tax on the income of that resident
an amount equal to the tax paid in India. Such deduction shall not, however,
exceed that part of the tax, as computed before the deduction is given, which
is attributable to such items of income derived from (c) Where in accordance with any provision of the Convention income
derived by a resident of Austria is exempt from tax in Austria, Austria may
nevertheless, in calculating the amount of tax on the remaining income of such
resident, take into account the exempted income. 3. In the case of (a) Where a resident of (b) Where, in accordance with any provision of this Convention, income
derived by a resident of India is exempt from tax in India, India may
nevertheless, in calculating the amount of tax on the remaining income of such
resident, take into account the exempted income. ARTICLE 24 : Non-Discrimination - 1.
Nationals of a 2. The taxation on a permanent establishment
which an enterprise of a 3. Except where the provisions of paragraph 1 of
Article 9, paragraph 7 of Article 11, or paragraph 7 of Article 12, apply,
interest, royalties and other disbursements paid by an enterprise of a
Contracting State to a resident of the other Contracting State shall, for the
purpose of determining the taxable profits of such enterprise, be deductible
under the same conditions as if they had been paid to a resident of the
first-mentioned State. 4. 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. 5. 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 actions of one or both of the Contracting
States result or will result for him in taxation not in accordance with the
provisions of this Convention, he may, irrespective of the remedies provided by
the domestic law of those States, present his case to the competent authority
of the Contracting State of which he is a resident or, if his case comes under
paragraph 1 of Article 24, to that of the Contracting State of which he is
national. The case must be presented within three years from the first
notification of the action resulting in taxation not in accordance with the
provisions of the Convention. 2. The competent authority shall endeavour if
the objection appears to it to be justified and if it is not itself able to
arrive at a satisfactory solution, to resolve the case by mutual agreement with
the competent authority of the other 3. The competent authorities of the Contracting
States shall endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the Convention. They
may also consult together for the elimination of double taxation in cases not
provided for in the Convention. 4. The competent authorities of the Contracting
States may communicate with each other directly, including through a joint
commission consisting of themselves or their representatives, for the purpose
of reaching an agreement in the sense of the preceding paragraphs. ARTICLE 26 : Exchange of Information - 1.
The competent authorities of the Contracting States shall exchange such
information as is necessary for carrying out the provisions of this Convention.
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) concerned with the assessment or collection of, the
enforcement or prosecution in respect of, or the determination of appeals in
relation to, the taxes covered by the Convention. Such persons or authorities
shall use the information only for such purposes. They may disclose the
information in public court proceedings or in judicial decisions. 2. In no case shall the provisions of paragraph
1 be construed so as to impose on a (a) to carry out administrative measures at variance with the laws and
administrative practice of that or of the other (b) to supply information which is not obtainable under the laws or in
the normal course of the administration of that or of the other (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 (ordre public). ARTICLE 27 : Members of Diplomatic Missions and
Consular Activities - Nothing in this Convention shall affect the fiscal
privileges of diplomatic or consular officials under the general rules of
international law or under the provisions of special agreements. ARTICLE 28 : Entry into Force - 1. The
Convention shall be ratified and the instruments of ratification shall be
exchanged at 2. The Convention shall enter into force thirty
days after the exchange of instruments of ratification and its provisions shall
have effect : (a) in (b) in 3. The Convention between the ARTICLE 29 : Termination - This Convention shall
remain in force indefinitely but either of the Contracting States may on or
before the thirtieth day of June in any calendar year beginning after the
expiration of a period of five years from the date of its entry into force,
give the other Contracting State through diplomatic channels, written notice of
termination and, in such event, this Convention shall cease to have effect : (a) in (b) in In witness
whereof the Plenipotentiaries of the two Contracting States, duly authorised
thereto, have signed this Convention. Done in
duplicate in
Protocol At the moment
of signing the Convention between the Government of the Ad Articles
6 and 13 : With reference to
paragraph 1 of Article 6 and Article 13 it is understood that in case of Ad Article
7 : (a) It is understood that the deductions in respect of the head office
expenses as referred to in paragraph 3 of Article 7 shall in no case be less
than those allowable under the Indian Income-tax Act as on the date of entry
into force of this Convention. (b) In the case of Austria the term profits as used in this Article
includes the profits derived by any partner from his participation in a
partnership and in any other body of persons which is treated in the same way
for tax purposes and from a participation in a sleeping partnership (Stille
Gesellschaft) created under Austrian law. Ad Article
24 : It is understood that
the provisions of Article 24 paragraph 2 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 being in conflict with
the provisions of paragraph 3 of Article 7. However, the difference in tax rate
shall not exceed 15 percentage points. Ad Article
26 : It is understood that in
the case of disclosure of information referred to in paragraph 1 of Article 26
the confidentiality of person related data may be waived only insofar as this
is necessary to safeguard predominant and legitimate interests of another
person or predominant public interests. It is understood
that the provisions of Article 26 paragraph 2 sub-paragraph (c) include
the basic rights granted by a State, in particular in the area of data
protection. In witness
whereof the Plenipotentiaries of the two Contracting States, duly authorised
thereto, have signed this Protocol. Done in
duplicate at
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