Application of agreement between the Govt. of India and the Govt. of the Federal Republic of Germany for avoidance of double taxation of income and capital over the unified territories of Federal Republic of Germany and the German Democratic Republic - Income Tax - 659/1993

Application of agreement between the Govt. of India and the Govt. of the Federal Republic of Germany for avoidance of double taxation of income and capital over the unified territories of Federal Republic of Germany and the German Democratic Republic Circular No. 659 Dated 8/9/1993 The unification of the Federal Republic of Germany with the German Democratic Republic took place on 3rd October, 1990. Under the unification treaty, the tax law in force in the Federal Republic of Germany is applicable in the territory of the former German Democratic Republic from 1st January, 1991. 2. Under Article XVIII of the Agreement between the Government of India and the Government of the Federal Republic of Germany for Avoidance of Double Taxation of Income (as notified vide notification No. 87 (25/33/57-IT), dated 13th September, 1960 (see [1960] 40 ITR (St.) 21, and subsequently amended by a protocol notified, vide Notification No. 6387 (F. No. 501/2/90-FTD), and exchange of notes dated 28th June, 1984 (see [1985] 156 ITR (St.) 90), mutual agreement has been reached for application of this agreement with effect from 1st January, 1991, in the territory of five new States as well as part of the Land Berlin where Basic Law was not valid before the coming into force of the German merger. The existing Agreement between the Government of India and the Government of the German Democratic Republic for the avoidance of double taxation with respect to taxes on income and on capital ( as notified vide Notification No. GSR 107 (E), dated 2nd March 1990 (see [1990] 182 ITR (St.) 357)) will be applied only until 31st December, 1990. 3. A similar intention has also been expressed by the Government of the Federal Republic of Germany for extension of the aforesaid agreement to the five new States as well as part of Land Berlin, vide their Circular No. 2/93, dated 4th January, 1993. (Sd.) S. P. Singh, Secretary, Central Board of Direct Taxes.