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BELARUS 4. Agreement for
avoidance of double taxation and prevention of fiscal evasion with Belarus Whereas
the annexed Agreement between the Government of the Republic of India and the
Government of the Republic of Belarus for the avoidance of double taxation and
the prevention of fiscal evasion with respect to taxes on income and on
property (capital) shall enter into force on the seventeenth day of July, 1998,
in accordance with Article 30 of the said Agreement, thirty days after the
receipt of later of notifications by both the Contracting States to each other
of completion of the procedure required by their respective laws for bringing
into force of the said Agreement. Now,
therefore, in exercise of the powers conferred by section 90 of the Income-tax
Act, 1961 (43 of 1961) and section 44A of the Wealth-tax Act, 1957 (27 of
1957), the Central Government hereby directs that all the provisions of the
said Agreement shall be given effect to in the Union of India. Notification : No.
GSR 392(E), dated 17-7-1998. Annexure Agreement between the
Government of the republic of India and The
Government of the Republic of India and the Government of the Republic of
Belarus desiring to conclude an Agreement for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on income and on
property (capital) have agreed as follows : Article 1 : Personal
scope - This Agreement shall apply to persons who are residents of one or
both of the Contracting States. Article 2 : Taxes
covered - 1. This Agreement shall apply to taxes on income
and on property (capital) 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 and on property (capital) all taxes
imposed on total income, on total property (capital) or on elements of income
or of property (capital) including taxes on gains from the alienation of
immovable property or property other than immovable property and taxes on the
total amounts of wages or salaries paid by enterprises. 3. The
taxes to which this Agreement shall apply are in particular : (a) in
India : (i) the
income-tax including any surcharge thereon; and (ii) wealth-tax (hereinafter
referred to as Indian Tax); and (b) in
Belarus : (i) the
tax on income and profits of enterprises associations and organisations; (ii) the
income-tax on individuals; and (iii) the
tax on immovable property (hereinafter
referred to as Belarusian tax). 4. The
Agreement shall apply also to any similar or substantially identical taxes
which are imposed by either Contracting State after the date of signature of
the Agreement in addition to, or in place of, the taxes referred to in
paragraph 3 above. 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. In this Agreement, unless the context otherwise
requires : (a) the
term India means the territory of India and includes the territorial sea and
airspace above it, as well as any other maritime zone in which India has
sovereign rights, other rights and jurisdictions, according to the Indian law
and in accordance with international law and the U.N. Convention on the law of
the Sea; (b) the
term Belarus means the Republic of Belarus and when used in a geographical
sense, means the territory over which the Republic of Belarus exercises under
the laws of the Republic of Belarus and in accordance with international law
sovereign rights and jurisdiction; (c) the
terms a Contracting State and the other Contracting State mean, as the
context requires, India or the Republic of Belarus; (d) the
term tax means Indian tax or Belarusian tax, as the context requires, but
shall not include any amount which is payable in respect of any default or
omission in relation to the taxes to which this Agreement applies or which
represents a penalty imposed relating to those taxes; (e) 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; (f) the
term company means : (i) in
India, any body corporate or other entity which is treated as a company or body
corporate under the taxation laws in force; (ii) in
Belarus, any legal person or any entity which is treated as a legal person for
tax purposes; (g) 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; (h) the
term competent authority means : (i) in
the case of India, the Central Government in the Ministry of Finance
(Department of Revenue) or their authorised representative; (ii) in
the case of Belarus, the State Tax Committee or its 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 international traffic means any transport by a ship or aircraft operated
by an enterprise of a Contracting State, except when the ship or aircraft is
operated solely between places in the other Contracting State; (k) the
term fiscal year means : (i) in
the case of India, the previous year as defined under section 3 of the
Income-tax Act, 1961; (ii) in
the case of Belarus, the calendar year from 1st day of January to 31st day of
December of the year. 2. As
regards the application of the Agreement by a Contracting State, any term not
defined therein shall, unless the context otherwise requires, have the meaning
which it has under the laws of that State concerning the taxes to which the
Agreement applies. Article 4 : Resident
- 1. For the purposes of this Agreement, the term resident of a
Contracting State means any person who, under the laws of that State, is
liable to tax therein by reason of his domicile, place of incorporation,
residence, place of management or any other criterion of a similar nature.
However, this term does not include any person who is liable to tax in that
State only in respect of income from sources in that State or property situated
therein. 2. Where
by reason of the provisions of paragraph 1 an individual is a resident of both
Contracting States, then his status shall be determined as follows : (a) he
shall be deemed to be a resident of the State in which he has a permanent home
available to him; if he has a permanent home available to him in both States,
he shall be deemed to be a resident of the State with which his personal and
economic relations are closer (centre of vital interests); (b) if
the State in which he has his centre of vital interests cannot be determined
or if he does not have a permanent home available to him in either Contracting
State, he shall be deemed to be a resident of the Contracting 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
each State considers him as its own national or if he is not a national of
either 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 if a person other than an individual
is a resident of both Contracting States, then it shall be deemed to be a
resident of the State in which its place of effective management is situated.
If the State in which its place of effective management is situated cannot be
determined, then the competent authorities of the Contracting States shall
settle the question by mutual agreement. Article 5 : Permanent
establishment - 1. For the purposes of this Agreement, the term
permanent establishment means a fixed place of business through which the
business of an enterprise is wholly or partly carried on. 2. The
term permanent establishment includes especially : (a) a
place of management; (b) a
branch; (c) an
office; (d) a
factory; (e) a
workshop; (f) a
mine, an oil or gas well, a quarry or any other place of extraction of natural
resources; (g) a
warehouse in relation to a person providing storage facilities for others; (h) a
farm, plantation or other place where agriculture, forestry, plantation, or
related activities are carried on; (i) a
sales outlet; (j) an
installation or structure used for the exploration or exploitation of natural resources; (k) a
building site or construction or assembly project or supervisory activities in
connection therewith only if such site, project or activity lasts for more than
six 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 purposes 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 or display; (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. However,
the provisions of sub-paragraphs (a) to (f) shall not be
applicable where the enterprise maintains any other fixed place of business in
the other Contracting State for any purposes other than the purposes specified
in the said sub-paragraphs. 4.
Notwithstanding the provisions of paragraphs 1 and 2, where a person - other
than an agent of an independent status to whom paragraph 5 applies - is acting
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. 5. An
enterprise of a Contracting State shall not be deemed to have a permanent
establishment in the other Contracting State merely because it carries on
business in that other State through a broker, a commission agent or any other
agent of an independent status, provided that such persons are acting in the
ordinary course of their business. However, when the activities of such an
agent are devoted wholly or almost wholly on behalf of that enterprise itself
or on behalf of that enterprise and other enterprises controlling, controlled
by, or subject to the same common control, as that enterprise, he will not be
considered an agent of an independent status within the meaning of this paragraph. 6. 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 Contracting State (whether through a
permanent establishment or otherwise), shall not of itself constitute either
company a permanent establishment of the other. 7. 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. 8.
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 5 applies. Article 6 : Income
from immovable property - 1. Income derived by a resident of a
Contracting State from immovable property (including income from agriculture or
forestry) situated in the other Contracting State may be taxed in that other
State. 2. The
term immovable property shall have the meaning which it has under the law of
the Contracting State in which the property in question is situated. 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 apply to income from immovable property
of an enterprise and also 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 : (a) that
permanent establishment; (b) sales
in that other State of goods or merchandise of the same or similar kind as
those sold through that permanent establishment; or (c) other
business activities carried on in that other State of the same or similar kind
as those effected through 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 make if
it were a separate independent enterprise engaged in the same or similar
activities under the same or similar conditions and acting 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
deduction expenses which are incurred for the purposes of the permanent
establishment, including executive and general administrative expenses so
incurred, whether in the State in which the permanent establishment is situated
or elsewhere, in accordance with the provisions of and subject to the
limitations of the taxation laws of that State. 4. No
profits shall be attributed to a permanent establishment by reason of the mere
purchase of goods or merchandise by that permanent establishment for the
enterprise. 5. For
the purpose 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 are good and sufficient reasons to the contrary. 6. Where
the profits include items of income which are dealt with separately in other
Articles of this Agreement, then the provisions of those Articles shall not be
affected by the provisions of this Article. Article 8 : International
traffic - 1. Profits of an enterprise of a Contracting State from the
operation of ships or aircraft in international traffic, as the case may be,
shall be taxable only in that State. 2. The
provisions of paragraph 1 shall also apply to profits from the participation in
a pool, a joint business or an international operating agency. 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. For
the purposes of this Article, profits from the operation of ships or aircraft
in international traffic shall mean profits derived by an enterprise from the
transportation by sea or air, respectively, of passengers, mail, livestock,
goods or merchandise carried on by the owners or lessees or charterers of
ships or aircraft. This will also include : (a) the
sale of tickets for such transportation on behalf of other enterprises; (b) the
use, maintenance, or rental of containers (including trailers, barges, and
related equipment for the transportation of containers) used in connection
with the operation of ships or aircraft in international traffic; (c) the
rental of ships or aircraft incidental to the operation of ships or aircraft in
international traffic; and (d) other
activity directly connected with operation of ships or aircraft in
international traffic. Article 9 : Associated
enterprises - Where, (a) an
enterprise of a Contracting State participates directly or indirectly in the
management, control or capital of an enterprise of the other Contracting State,
or (b) the
same persons participate directly or indirectly in the management, control or
capital of an enterprise of a Contracting State and an enterprise of the other
Contracting State, and in
either case, conditions are made or imposed between the two enterprises in
their commercial or financial relations which differ from those which would be
made between independent enterprises, then any profits which would 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. Article 10 : Dividends
- 1. Dividends paid by a company which is a resident of a
Contracting State to a resident of the other Contracting State may be taxed in
that other Contracting State. 2.
However, such dividends may also be taxed in the Contracting State of which the
company paying the dividends is a resident and according to the laws of that
State, but if the recipient is the beneficial owner of the dividends the tax so
charged shall not exceed : (a) 10
per cent of the gross amount of the dividends if the beneficial owner is a
company which holds directly at least 25 per cent of the shares of the company
paying the dividends; (b) 15
per cent of the gross amount of the dividends in all other cases. This
paragraph shall not affect the taxation of the company in respect of the
profits out of which the dividends are paid. 3. The
term dividends as used in this Article means income from shares or other
rights, not being debt-claims, participating in profits, as well as income from
other rights which is subjected to the same taxation treatment as income from
shares under the laws of the Contracting 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 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 that other State. Article 11 : Interest
- 1. Interest arising in a Contracting State and paid to a resident
of the other Contracting State may be taxed in that other State. 2.
However, such interest may also be taxed in the Contracting State in which it
arises and according to the laws of that State, but if the recipient is the
beneficial owner of the interest the tax so charged shall not exceed 10 per cent of the gross amount of the interest. 3.
Notwithstanding the provisions of paragraph 2, (a) interest
arising in a Contracting State shall be exempt from tax in that State provided
it is derived and beneficially owned by : (i) the
Government, a political sub-division or a local authority of the other
Contracting State; or (ii) the
Central Bank of the other Contracting State or any other bank or Governmental
financial institutions that may be mutually agreed upon between the two
Contracting States; (b) interest
arising in a Contracting State shall be exempt from tax in that Contracting
State to the extent approved by the Government of that 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 Government of 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 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 a case, the provisions of
Article 7 or 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, its political sub-division or a local authority or a resident of
that State. Where, however, the person paying the interest whether he is a
resident of a Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the indebtedness on
which the interest is paid was incurred, and such interest is borne by such
permanent establishment or fixed base, then such interest shall be deemed to
arise in the Contracting State in which the permanent establishment or fixed
base is situated. 7. Where
by reason of a special relationship between the payer and the beneficial owner
or between both of them and some other person, the amount of the interest
having regard to the debt-claim for which it is paid, exceeds the amount which
would have been agreed upon by the payer and the beneficial owner in the
absence of such relationship, the provisions of this Article shall apply only
to the last-mentioned amount. In such a case, the excess part of the payments
shall remain taxable according to the laws of each Contracting State, due
regard being had to the other provisions of this Agreement. Article 12 : Royalties
and fees for technical services - 1. Royalties or fees for technical
services arising in a Contracting State and paid to a resident of the other
Contracting State may be taxed in that other State. 2.
However, such royalties or fees for technical services may also be taxed in the
Contracting State in which they arise and according to the laws of that State,
but if the recipient is the beneficial owner of the royalties or fees for
technical services, the tax so charged shall not exceed 15 per cent of the
gross amount of the royalties or fees for technical services. 3. The
term royalties as used in this Article means payment 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 cinematographic films or films or tapes
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 payment of any
kind in consideration for the rendering of any managerial, technical or
consultancy services including the provision of services by technical or other
personnel but does not include payments for services mentioned in Articles 14
and 15 of this Agreement. 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, property
or contract in respect of which the royalties or fees for technical services
are paid is effectively connected with such permanent establishment or fixed
base. In such a case, the provisions of Article 7 or Article 14, as the case
may be, shall apply. 6.
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. 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 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 in
the absence of such relationship, the provisions of this Article shall apply
only to the last-mentioned amount. In such a case, the excess part of the
payments shall remain taxable according to the laws of each Contracting State,
due regard being had to the other provisions of this Agreement. Article 13 : Capital
gains (gains from alienation of property) - 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 Contracting State. 2. Gains
from the alienation of property other than immovable 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 property other than immovable
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
property other than immovable property pertaining to the operation of such
ships or aircraft, shall be taxable only in the Contracting State of which the
alienator is a resident. 4. Gains
from the alienation of shares of the capital stock of a company the property of
which consists directly or indirectly principally of immovable property
situated in a Contracting State may be taxed in that State. 5. Gains
from the alienation of shares other than those mentioned in paragraph 4 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 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 a 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 especially independent scientific,
literary, artistic, educational or teaching activities as well as independent
activities of physicians, lawyers, engineers, architects, dentists and
accountants. Article 15 : Dependent
personal services - 1. Subject to the provisions of Articles 17, 18,
19, 20 and 21 salaries, wages and other similar remuneration derived by a
resident of a Contracting State in respect of an employment shall be taxable
only in that State unless the employment is exercised in the other Contracting
State. If the employment is so exercised, such remuneration as is derived
therefrom may be taxed in that other State. 2.
Notwithstanding the provisions of paragraph 1, remuneration derived by a
resident of a Contracting State in respect of an employment exercised in the
other Contracting State shall be taxable only in the first-mentioned State if : (a) the
recipient is present in the other Contracting 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 Contracting State. 3.
Notwithstanding the preceding provisions of this Article, the remuneration
derived in respect of an employment exercised aboard a ship or aircraft
operated in international traffic by the 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 be taxed in that
other State. Article 17 : Artists
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 sports person from his personal activities as such exercised in the
other Contracting State may be taxed in that other State. 2. Where
income in respect of personal activities exercised by an entertainer or a
sportsperson in his capacity as such accrues not to the entertainer or
sportsperson himself but to another person, such 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 supported wholly by public funds of one or both of the
Contracting States of political sub-divisions or local authorities thereof or
the activity is exercised within the framework of cultural or sports
co-operation agreement between the
Contracting States. In such a case, the income is taxable only in the
Contracting State of which the entertainer or sportsperson is a resident. Article 18 : 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 local authority
thereof shall be taxed only in that State. (b)
However, such pension shall be taxable only in the other Contracting State if
the individual is a resident of, and a national of, that State. 3. The
provisions of Articles 15, 16 and 19 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 19 : Non-Government
pensions and annuities - 1. Any pension, other than a pension
referred to in Article 18, or any annuity derived by a resident of a
Contracting State from sources within the other Contracting State shall be
taxable only in the first-mentioned Contracting State. 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 payments in return for adequate and full consideration in money or
moneys worth. Article 20 : Students
and apprentices - 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
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
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 than five consecutive years from the date of his first
arrival in that other Contracting State. Article 21 : Professors,
teachers and research scholars - 1. A professor or teacher who is or
was a resident of one of the Contracting States immediately before visiting the
other Contracting State for the purpose of teaching or engaging in research, or
both, at a university, college, or other similar institution in that
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 the Contracting State if he is resident in that Contracting
State in the fiscal year in which he visits the other Contracting State or in
the immediately fiscal year. Article 22 : Other
income - 1. Items of income of a resident of a Contracting State,
wherever arising, not dealt with in the foregoing Articles of this Agreement
shall be taxable only in that State. 2. The
provisions of paragraph 1 shall not apply to income other than income from
immovable property as defined in paragraph 2 of Article 6, if the recipient of
such income, being a resident of a Contracting State, carries on business in
the other Contracting State through a permanent establishment situated therein,
or performs in that other State independent personal services from a fixed base
situated therein, and the right or property in respect of which the income is
paid is effectively connected with such permanent establishment or fixed base.
In such a case, the provisions of Article 7 or Article 14, as the case may be,
shall apply. 3.
Notwithstanding the provisions of paragraphs 1 and 2, items of income of a
resident of a Contracting State not
dealt with in the foregoing Articles of this Agreement, and arising in the
other Contracting State may be taxed in that other State. Article 23 : Property
(Capital) - 1. Property (Capital) represented by immovable
property referred to in Article 6, owned by a resident of a Contracting State
and situated in the other Contracting State, may be taxed in that other State. 2.
Property (Capital) represented by property other than immovable 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 by
property other than immovable 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, may be taxed in that other
State. 3.
Property (Capital) represented by ships and aircraft operated in international
traffic or by boats engaged in inland waterways transport and by property other
than immovable property pertaining to the operation of such ships, boats and
aircraft shall be taxable only in the Contracting State of which the owner of such
ships, boats, aircraft or property is a resident. 4. All
other elements of property (capital) of a resident of a Contracting State shall
be taxed only in that State. Article 24 : Elimination
of double taxation - 1. The laws in force in either of the Contracting
States shall continue to govern the taxation of income and property (capital)
on the respective Contracting States except where express provision to the
contrary is made in this Agreement. 2. In the
case of India, double taxation shall be eliminated as follows : Where a
resident of India derives income or owns capital which, in accordance with the
provisions of this Agreement, may be taxed in the Republic of Belarus, India
shall allow as a deduction from the tax on the income of that resident an
amount equal to the income-tax paid in the Republic of Belarus whether directly
or by deduction; and as a deduction from the tax on the capital of that
resident an amount equal to the property (capital) tax paid in the Republic of
Belarus. Such deduction in either case shall not, however, exceed that part of
the income-tax or capital tax (an computed before the deduction is given) which
is attributable, as the case may be, to the income or the capital which may be
taxed in the Republic of Belarus. 3. In the
case of the Republic of Belarus, double taxation shall be eliminated as follows
: Where a
resident of the Republic of Belarus derives income which, in accordance with
the provisions of this Agreement, may be taxed in India, the Republic of
Belarus shall allow as a deduction from the tax on the income of that resident,
an amount equal to the income-tax paid in India; and as a deduction from the
tax on the property (capital) of that resident, an amount equal to the capital
tax paid in India. Such deduction shall not, however, exceed that part of the
income-tax or property (capital) tax, as computed before the deduction is
given, which is attributable, as the case may be, to the income or the property
(capital) which may be taxed in India. 4. The
tax payable in the Contracting State mentioned in paragraphs 2 and 3 of this
Article shall be deemed to include the tax which would have been payable but
for the tax incentives granted under the laws of the Contracting State and
which are designed to promote economic development. 5. Income
which in accordance with the provisions of this Agreement, is not to one
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 25 : Non-discrimination
- 1. Nationals of a Contracting State shall not be subjected in the
other Contracting State to other or more burdensome taxation or any requirement
connected therewith, than the taxation and connected requirements to which
nationals of that other State in the same circumstances are or may be
subjected. 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 an enterprise 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 enterprise of the first-mentioned Contracting State, nor as being in
conflict with the provisions of paragraph 3 of Article 7 of this Agreement. 3.
Nothing contained in this Article shall be construed as obliging a Contracting State to grant to persons not
resident in that State any personal allowances, reliefs, reductions and
deductions for taxation purposes which are by law available only to persons who
are so resident. 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 may be subjected in the same
circumstances and under the same conditions. 5. In
this Article, the term taxation means taxes which are the subject of this
Agreement. 6. Except
where the provisions 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 enterprises,
be deductible under the same conditions as if they had been paid to a resident
of the first mentioned State. Similarly, any debts of an enterprise of a
Contracting State to a resident of the other Contracting State shall, for the
purpose of determining the taxable capital of such enterprise, be deductible
under the same conditions as if they had been contracted to a resident of the
first mentioned State. Article 26 : Mutual
agreement procedure - 1. Where a resident of a Contracting State
considers that the actions of one or both of the Contracting States result or
will result for him in taxation not in accordance with this Agreement, he may,
irrespective of the remedies provided
by the domestic laws of those Contracting States, present his case to the
competent authority of the Contracting State of which he is a resident, or if
his case comes under paragraph 1 of Article 25, to that of the Contracting
State of which he is a national. The case must be presented within three years
from the date of the first notification of the action resulting in taxation not
in accordance with the provisions of this Agreement. 2. The
competent authority shall endeavour, if the objection appears to it to be
justified and if it is not itself able to arrive at a satisfactory solution, to
resolve the case by mutual agreement with the competent authority of the other
Contracting State for the avoidance of taxation which is not in accordance with
the Agreement. Any agreement reached shall be implemented notwithstanding any
time limits in the domestic law of the Contracting States. 3. The
competent authorities of the Contracting States shall endeavour to resolve by
mutual agreement any difficulties or
doubts arising as to the interpretation or application of the Agreement. They
may also consult together for the elimination of double taxation in cases not
provided for in the Agreement. 4. The
competent authorities of the Contracting States may communicate with each
other directly for the purpose of reaching an agreement in the sense of the
preceding paragraphs. When it seems advisable in order to reach an agreement to
have an oral exchange of opinions, such exchange may take place through a
Commission consisting of representatives of the competent authorities of the
Contracting States. Article 27 : Exchange
of information - 1. The competent authorities of the Contracting
States shall exchange such information (including documents) as is necessary
for carrying out the provisions of this Agreement or of the domestic laws of
the Contracting States concerning taxes covered by the Agreement, insofar as
the taxation thereunder is not contrary to the Agreement. The exchange of
information is not restricted by Article 1. Any information received by a
Contracting State shall be treated as secret in the same manner as information
obtained under the domestic laws of that State and shall be disclosed only to
persons or authorities (including Courts and administrative bodies) involved
in the assessment, or collection of, the enforcement or prosecution in respect
of, or the determination of appeals in relation to, the taxes covered by the
Agreement. Such persons or authorities shall use the information only for such
purposes. They may disclose the information in public court proceedings or in
judicial decisions. The competent authorities shall, through consultation,
develop appropriate conditions, methods and techniques, the list of
information and documents concerning the matters in respect of which such
exchange of information shall be made, including, where appropriate, exchange
of information regarding tax avoidance. The exchange of information or
documents shall be on request of the competent authorities of the Contracting
States. 2. In no
case shall the provisions of paragraph 1 be construed as to impose on a
Contracting State the obligation : (a) to
carry out administrative measures at variance with the laws or administrative
practice of that or 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 28 : Assistance
in collection - 1. The
Contracting States undertake to lend assistance and support to each other, in
the collection of the taxes to which this Agreement relates, in the cases where
the taxes are definitely due according to the laws of the State making the
request. 2. In the
case of a request for enforcement of collection, tax claims of either of the
Contracting States which have been finally determined will be accepted for
enforcement by the other Contracting State to which the request is made and
collected in that State in accordance with the laws applicable to the enforcement
and collection of its taxes. 3. In the
case of Indian tax, the request will be sent by the Central Board of Direct
Taxes, Department of Revenue to the State Tax Committee of the Republic of
Belarus and will be accompanied by such certificate as is required by the laws
of India to establish that the taxes have been finally determined and are due from the taxpayer. 4. In the
case of Belarusian tax, the request will be sent by the State Tax Committee of
the Republic of Belarus to the Central Board of Direct Taxes, Department of
Revenue, in India and will be accompanied by such certificate as is required by
the laws of the Republic of Belarus to establish that the taxes have been
finally determined and are due from the taxpayer. 5. Where
that tax claim has not become final by reason of its being subject to appeal or
any other proceeding, a Contracting State may, in order to protect its
revenues, request the other Contracting State to take such interim measures in
this behalf as are lawful under the laws of that other Contracting State. 6. A
request for assistance in collection of taxes due from a taxpayer shall be made
only if adequate assets of that taxpayer are not available for recovering the
taxes from him in the Contracting State making the request. 7. The
Contracting State in which tax is recovered in pursuance of paragraphs 1, 2 and
5 of this Article shall immediately thereafter remit the amount so recovered
to the Contracting State which made the request but it shall be entitled to
reimbursement of actual costs, if any, incurred in the course of rendering
assistance to the extent mutually agreed between the competent authorities of
the Contracting States. Article 29 : Diplomatic
and consular officials - Nothing in this Agreement shall affect the fiscal
privileges of diplomatic or consular officials under the general rules of
international law or under the provisions of special agreements. Article 30 : Entry
into force - 1. The Contracting States shall notify each other in
writing, through diplomatic channels, the completion of the procedure required
by the respective laws for the entry into force of this Agreement. 2. This
Agreement shall enter into force thirty days after the receipt of the later of
the notifications referred to in paragraph 1 of this Article. 3. The
provisions of this Agreement shall have effect : (a) in
India : (i) in
respect of income arising in any fiscal year beginning on or after the first
day of April next following the calendar year in which the Agreement enters
into force; (ii) in
respect of capital which is held on the last day of any fiscal year beginning
on or after the first day of April next following the calendar year in which
the Agreement enters into force ; (b) in
Belarus : (i) in
respect of taxes withheld at source on amounts of income, derived on or after
the 1st day of January in the calendar year next following the year in which
the Agreement enters into force; and (ii) in
respect of other taxes on income and taxes on property (capital) to such taxes
chargeable in any taxable year beginning on or after the 1st day of January in
the calendar year next following the year in which the Agreement enters into
force. Article 31 : Termination
- This Agreement shall remain in force indefinitely until terminated by a
Contracting State. Either Contracting State may terminate the Agreement,
through diplomatic channels, by giving notice of termination at least six
months before the end of any calendar year beginning after the expiration of
five years from the date of entry into force of the Agreement. In such event,
the Agreement shall cease to have effect : (a) in
India, (i) in
respect of income arising in any fiscal year beginning on or after the first
day of April next following the calendar year in which the notice of
termination is given; (ii) in
respect of capital which is held at the expiry of any previous year beginning
on or after the first day of April next following the calendar year in which
the notice of termination is given; (b) in
Belarus, (i) in
respect of taxes withheld at source, to amounts of income derived on or after
the 1st day of January in the calendar year next following the year in which
the notice is given; (ii) in
respect of other taxes on income or taxes on property (capital) to such taxes
chargeable in any taxable year beginning on or after the 1st day of January in
the calendar year next following the year in which the notice is given. In witness whereof, the undersigned, being duly
authorised thereto have signed the present Agreement. Done in duplicate at New Delhi, this 27th day of
September, 1997, in Hindi, Belarusian and English languages, all the texts
being equally authentic. In the case of divergence between any of the texts,
the English text shall be the operative one.
Protocol The
Government of Republic of India and the Government of the Republic of Belarus
have agreed at the signing at New Delhi on 27th September, 1997, of the
Agreement between the two States for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income and on property
(capital) upon the following provisions which shall form an integral part of
the said Agreement. 1. For
purposes of this Agreement, the term political sub-division as used in the
Agreement shall be applicable to India only. 2. With
reference to Article 4, it is understood that when establishing the place of
effective management as used in paragraph 3 of Article 4, circumstances which
may, inter alia, be taken into account are the place where a company is
actually managed and controlled, the place where the decision making at the
highest level on important policies essential for the management of a company
takes place, the place that plays a leading part in the management of a company
from an economic and functional point of view and the place where the relevant
accounting books are kept. 3. For
purposes of this Agreement, it is understood that the term fixed base
includes a fixed place such as an office or a room or any other place regularly
available to him through which the activity of a person performing independent
personal services is wholly or partly carried on. In witness thereof, the undersigned, being duly
authorised thereto have signed this Protocol. Done, in duplicate, at New Delhi, this 27th day of
September, 1997, in Hindi, Belarusian and English languages, all texts being
equally authentic. In the case of divergence between any of the texts, the
English text shall be the operative one.
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