Protocol - Protocol - Lithuania

PROTOCOL At the moment of signing the Agreement between the Government of the Republic of India and the Government of the Republic of Lithuania for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed that the following provisions shall form an integral part of the Agreement: 1. Ad Article 5 It is understood that on the date of this Agreement none of the agreements for the avoidance of double taxation concluded by Lithuania provide for special provision deeming an insurance enterprise of a Contracting State to have a permanent establishment in the other Contracting State if it collects premiums or insures risks in the territory of that other State through a dependent agent. However, if after that date, such special provision is included in any agreement for the avoidance of double taxation concluded by Lithuania, then, after consultations between the competent authorities of the Contracting States, such provision shall also be considered for this Agreement. 2. Ad Article 6 Where the ownership of shares or other corporate rights in a company entitles the owner of such shares of corporate rights to the enjoyment of immovable property held by the company, the income from the direct use, letting, or use in any other form of such right to the enjoyment may be taxed in the Contracting State in which the immovable property is situated. 3. Ad Article 7 paragraph 3 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 Agreement. No deduction shall be allowed in respect of amounts paid or 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: (i) royalties, fees or other similar payments in return for the use of patents or other rights; (ii) commission for specific services performed or for management; and (iii) interest on moneys lent to the permanent establishment except in case of a banking institution. 4. Ad Article 8 paragraph 1It is understood that: (i) profits from the operation of ships or aircraft in international traffic shall include profits from the use, maintenance or rental of containers (including trailers and related equipment for the transportation of containers) used for the transportation of goods or merchandise in international traffic, where such kind of activities are supplementary or incidental to the operation of ships or aircraft by the enterprise in international traffic, unless the containers are used solely within the other Contracting State; (ii) interest on funds directly connected with the operation of ships or aircraft in international traffic shall be regarded as profits from the operation of such ships or aircraft if they are integral to the carrying on of such business, and the provisions of Article 11 shall not apply in relation to such interest. Done in duplicate at New Delhi this 26th day of July, 2011, each in the Hindi, Lithuanian and English languages, all texts being equally authentic. In the case of divergence of interpretation, the English text shall prevail.