Article 30 - Termination - Korea (Old - Effective upto 31-3-2017)

Article 30 : Termination The 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 Korea: (i) in respect of tax withheld at the source on amounts paid or credited to non-residents or after the first day of January next following the calendar year in which the notice of termination is given; and (ii) in respect of other taxes for taxation years beginning on or after the first day of January next following the calendar year in which the notice of termination is given. (b) in India: (i) in respect of tax withheld at the source on amounts paid or credited to non-residents on or after the first day of April next following the calendar year in which the notice of termination is given; and (ii) in respect of other taxes for previous years beginning on or after the first day of April next following the calendar year in which the notice of termination is given. IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed the present Convention. Done in duplicate at New Delhi this 19th day of July one thousand nine hundred and eighty-five on three original copies each in the Hindi, Korean and English languages, all the texts being equally authentic. In case of divergence between the three texts, the English text shall be the operative one. (Sd.) (Vishwanath Pratap Singh) Minister of Finance For the Government of the Republic of India (Sd.) (Won Kyung Lee) Minister of Foreign Affairs For Government of Republic of Korea PROTOCOL At the moment of signing the Convention between the Government of the Republic of India and the Government of the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, the undersigned have agreed that the following provisions shall form an integral part of the Convention. 1. In respect of sub-paragraph (a) of paragraph 3 of Article 2 of the Convention, it is understood that the Convention shall also apply to the Korean defence tax where charged by reference to the income-tax or the corporation tax. 2. For the purposes of Articles 8 and 9 of the Convention, it is understood that: (i) interest on funds connected with the operation of aircraft and ships in international traffic shall also be regarded as profits from the operation of such aircraft and ships; and (ii) in respect of the operation of aircraft and ships in international traffic carried on by an enterprise of a Contracting State, that enterprise, if an enterprise of India, shall also be exempt from the value added tax in Korea and, if an enterprise of Korea, shall also be exempt from any tax similar to the value added tax in Korea, which may hereafter be imposed in India. 3. In respect of Article 9, it is understood that the provisions of its paragraphs 1 and 2 shall apply in respect of shipping transport carried on or after the taxation year in which an agreement related to shipping transport between the Contracting States or their authorised nominees is concluded and becomes effective. It is further understood that until an agreement related to shipping transport between the Contracting States or their authorised nominees enters into force, paragraph 2 shall read as follows: "profits derived from the operation of ships in international traffic may be taxed in the Contracting State in which such operation is carried on; but the tax so charged shall not exceed 90 per cent. of the tax otherwise imposed by the internal law of that State." 4. In respect of paragraphs 2 and 4 of Article 24, it is understood that the provisions of those paragraphs shall apply for the first 5 years for which this Convention is effective but the competent authorities of the Contracting States may consult each other to determine whether this period shall be extended. IN WITNESS WHEREOF, the undersigned have signed the present protocol which shall have the same force and validity as if it were inserted word by word in the Convention. Done in duplicate at New Delhi this 19th day of July of the year one thousand nine hundred and eighty-five on three original copies each in the Hindi, Korean and English languages, all the texts being equally authentic. In case of divergence between the three texts, the English text shall be the operative one. (Sd.) (Vishwanath Pratap Singh) Minister of Finance For the Government of the Republic of India (Sd.) (Won Kyung Lee) Minister of Foreign Affairs For Government of Republic of Korea EMBASSY OF INDIA SEOUL Protocol of Exchange of Instruments of Ratification The undersigned, Sudhir Tukaram Devare, Ambassador Extraordinary and Plenipotentiary of the Republic of India to the Republic of Korea and Shin Kee-Bock, Director-General of the International Organizations and Treaties Bureau, Ministry of Foreign Affairs of the Republic of Korea, being duly authorised by their respective Governments, have met for the purpose of exchanging the Instruments of Ratification of the Convention between the Government of the Republic of India and the Government of the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income which was signed at New Delhi on 19th July, 1985. The respective Instruments of Ratification of the aforementioned Convention having been examined and found to be in good and due form, the exchange thereof took place this day. IN WITNESS WHEREOF, they have signed the present Protocol. Done in two originals in the English language, both being equally authentic, at Seoul this first day of August, 1986. ( Sd. ) Illegible For the Government of the Republic of India ( Sd. ) Illegible For the Government of the Republic of Korea [No. 6937-F. No. 501/22/73-FTD] Convention between the Government of the Republic of India and the Government of the Republic of Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income: Amendment WHEREAS the Government of the Republic of India and the Government of the Republic of Korea had concluded a Convention for the avoidance of the double taxation and the prevention of fiscal evasion with respect to taxes on income which was notified by the Government of India, Ministry of Finance in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (1), under G.S.R. No. 1111 (E), dated 26th September, 1986: WHEREAS paragraph 4 of the Protocol to the said Convention provides that the provisions of paragraphs 2 and 4 of Article 24 shall apply for the first 5 years for which the said Convention is effective but the competent authorities of the Contracting States may consult each other to determine whether this period shall be extended; WHEREAS the said period of 5 years has already expired: AND WHEREAS the competent authorities of the Contracting States have since agreed to extend this period for a further period of 5 years so as to provide that the provisions of paragraphs 2 and 4 of Article 24 of the Convention will be applicable for the first 10 years for which the Convention is effective; NOW, THEREFORE, in exercise of the powers conferred by section 90 of the Income Tax Act, 1961 (43 of 1961), and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that the provisions of paragraph 4 of the Protocol of the Convention between the Government of the Republic of India and the Government of the Republic of Korea for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income stands modified to the extent mentioned below, namely:- In the said paragraph for the words and figure "the first 5 years", the words and figures "the first 10 years" shall be substituted. [Notification No. 8785/F. No. 501/22/73-FTD]