Article 24 - Elimination of double taxation - Syria (Old - Effective upto 31-3-2009)

CHAPTER IV METHODS FOR ELIMINATION OF DOUBLE TAXATION 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 in the respective ContractingState except where provisions to the contrary are made in this Agreement. 2. Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Syria, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the income-tax paid in Syria, whether directly or by deduction. Such deduction shall not, however, exceed that part of the Indian-tax (as computed before the deduction is given) which is attributable to the income which may be taxed in Syria. Further, where such resident is a company by which surtax is payable in India, the deduction aforesaid shall be allowed in the first instance from income-tax payable by the company in India and as to the balance, if any, from surtax payable by it in India. 3. For the purposes of the deduction referred to in paragraph 2, "income-tax paid in Syria" shall be deemed to include any amount which would have been payable as Syrian tax but for a deduction allowed in computing the taxable income or an exemption or reduction from tax granted for that year under :- (i) the Legislative Decree 103 of 1952 regarding exemption of new industrial projects or Article 9 of Law No. 44 of 1959, regarding relief to contractors engaged in development projects during the period of execution, so far as the aforesaid Legislative Decree and Article were in force on, and have not been modified since, the date of the signature of this Agreement, or have been modified only in minor respects so as not to affect their general character; or (ii) any other provision which may be enacted after the fifth day of March, 1982, granting a deduction in computing the taxable income or an exemption or reduction from tax which the competent authorities of the Contracting States agree to be for the purposes of economic development, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character. 4. Where a resident of Syria derives income which, in accordance with the provisions of this Agreement, may be taxed in India, Syria shall allow as a deduction from the tax on the income of that resident, an amount equal to the income-tax paid in India, whether directly or by deduction. Such deduction shall not, however, exceed that part of the Syrian tax (as computed before the deduction is given) which is attributable to the income which may be taxed in India. 5. For the purposes of the deduction referred to in paragraph 4, "income-tax paid in India" shall be deemed to include any amount which would have been payable as Indian tax but for a deduction allowed in computing the taxable income or an exemption or reduction from tax granted for that year under :- (i) sections 10(4), 10(4A), 10(6)(viia), 10(15)(iv), 10(28), 10A, 32A, 33A, 35P (sic), 54E, 80HH, 80HHA, 80-I, or 80L of the Income Tax Act, 1961 (43 of 1961), so far as they were in force on, and have not been modified since, the date of the signature of this Agreement, or have been modified only in minor respects so as not to affect their general character, or (ii) any other provision which may be enacted after the fifth day of March, 1982, granting a deduction in computing the taxable income or an exemption or reduction from tax which the competent authorities of the Contracting States agree to be for the purposes of economic development, if it has not been modified thereafter or has been modified only in minor respects so as not to affect its general character. 6. Where under this Agreement a resident of a Contracting State is exempt from tax in that Contracting State in respect of income derived from the other Contracting State, then the first-mentioned Contracting State may, in calculating tax on the remaining income of that person, apply the rate of tax which would have been applicable if the income exempted from tax in accordance with this Agreement had not been so exempted.