Agreement between the Government of the Republic of India and the Government of Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes - G.S.R. 635 (E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) (Foreign Tax Division) NOTIFICATION New Delhi, the 24th June, 1992 INCOME-TAX G.S.R. 635 (E).- Whereas paragraph 4 of the Protocol to the Agreement between the Government of India and the Government of Canada for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income which was notified by the Government of India in the Ministry of Finance (Department of Revenue) in the Gazette of India. Extra-ordinary, Part II, Section 3, Sub-section (i) vide No. G.S.R. 1108(E), dated 25th September, 1986, provides that in the event that, pursuant to an Agreement or a Convention concluded with a State which is a member of the Organisation for Economic. Cooperation and Development after the date of signature of the Agreement, that is the 30th day of October, 1985, India would accept a rate lower than 30 per cent for the taxation of royalties or fees for technical services paid by a resident of India to a resident of that State, such lower rate would automatically be applied for the taxation of royalties and fees for technical services paid by a resident of India to a resident of Canada where such payment is made in respect of a right or property, which is first granted, or under a contract which is signed, after the date of entry into force of the first mentioned Agreement; And whereas in the Convention with the Government of the Kingdom of Sweden which is a member of the Organisation for Economic Cooperation and Development, and which entered into force on the 12th day of December, 1988, the Government of India has accepted the rate of 20 per cent for the Taxation of royalties and fees for technical services; Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (41 of 1961) and section 24A of this Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that the rate of taxation of royalties and fees for technical services paid by a resident of India to a resident of Canada, where such payment is made in respect of right or property which is first granted, or under a contrast which is signed, after the 12th day of December, 1988 shall be twenty per cent. [No. 9047/F. No. 505/2/87-FTD] T. S KRISHNAMURTHY, Jt. Secy.