Agreement between the Govt. of India and the Union of Soviet Socialist Republics for the avoidance of double taxation of income from the carriage of cargo - 0419(E) - Income Tax

MINISTRY OF FINANCE (Department of Revenue) (Foreign Tax Division) NOTIFICATION New Delhi, the 31 th May, 1984 (INCOME-TAX) G.S.R. 419(E). Whereas the Government of India and the Union of Soviet Socialist Republics have concluded an agreement through exchange of letters as set out in the Annexure hereto, for the modification of the Agreement entered into by the said Government, for the avoidance of double taxation in respect of taxes on income derived from the carriage of cargo ; 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 the said agreement shall be given effect to in the Union of India ANNEXURE AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE UNION OF SOVIET SOCIALIST REPUBLICS MODIFYING THE AGREEMENT ON MERCHANT SHIPPING New Delhi, April 12, 1983 Excellency, The delegation of the Government of the Union Republic of India and the Government Of the Union of Soviet Socialist Republics met at New Delhi on April 4-6-1983 and had detailed discussions about the operation of two lighter-carriers Tibor Szemuely and Yulius Fuchik owned by the Soviet Union but on time-charter to the Interlighter International Shipping Company with headquarters at Budapest which is a joint venture company of the Governments of Soviet Union, Czechoslovakia, Bulgaria and Hungary. The ships fly the flag of the Soviet Union. Under the intergovernmental agreement between the owner countries, the Interlighter International Shipping Company can use only the Soviet vessels. In view of the special circumstances of the case and taking note of the growing Indo-Soviet cooperation in industry and commerce including shipping, the two delegations agreed that the operation of the above named lighter-carriers owned by the Soviet Union and flying the Soviet flag is covered by the Indo-Soviet Shipping Agreement of 1976. It was further agreed: (1) the cargoes handled by the Interlighter from and to India will be subject to the existing bilateral shipping agreements between the countries of origin and destination wherever they exist between India and the co-owners of the Interlighter and, in the absence of such agreements, the cargoes will not attract any special concessions; (2) (a) disbursements and port dues shall be paid hi Indian rupees to the extent the ship is carrying cargo from and to rupee payment countries; (b) disbursements and port dues shall be paid in free foreign exchange for cargoes carried from and to the non-rupee payment countries. In case circumstances change, the parties may by mutual consent review this agreement. Kindly confirm that the above correctly sets out the agreement reached between us in this regard Assuring you of my highest consideration Yours sincerely, Sd/- Mohinder Singh H.E. Mr. V.M. Nicolaichuk Deputy Minister, Soviet Ministry of Merchant Marine, Government of the U.S.S.R NEW DELHI April 12, 1983 Excellency I acknowledge the receipt of your letter of 12 April 1983 which reads as follows: The delegations of the Government of the Republic of India and the Government of the Union of Soviet Socialist Republics met at New Delhi on April 4-6-1983 and had detailed discussions about the operation of two lighter-carriers Tibor Szemuely and Yulius Fuchik owned by the Soviet Union but on time-charter to the Interlighter International Shipping Company with headquarters at Budapest which is a joint venture company of the Governments of Soviet Union, Czechoslovakia, Bulgaria and Hungary. The ships fly the flag of the Soviet Union, Under the intergovernmental agreement between the owner countries, the Interlighter International Shipping Company can use only the Soviet vessels. In view of the special circumstances of the case and taking note of the growing Indo-Soviet cooperation in industry and commerce including shipping, the two delegations agreed that the operation of the obnve named lighter-carriers owned by the Soviet Union and flying the Soviet flag is covered by the Indo-Soviet Shipping Agreement of 1976. It was further agreed; (1) the cargoes handled by the Interlighter from and to India will be subject to the existing bilateral shipping agreements between the countries of origin and destination wherever they exist between India and the co-owners of the Interlighter and, in the absence of such agreements, the cargoes will not attract any special concessions; (2) (a) disbursements and port dues shall be paid in Indian rupees to the extent the ship is carrying cargo from and to rupee payment countries; (b) disbursements and port dues shall be paid in free foreign exchange for cargoes carried from and to the non-rupee payment countries. In case circumstances change, the parties may by mutual consent review this agreement. Kindly confirm that the above correctly sets out the agreement reached between us in this regard. Assuring you of my highest consideration. : I have the honour to confirm that the contents of your letter correctly set out the understanding between us in this regard. Assuring you of my highest consideration. Yours sincerely, Sd/- V.M. Nicolaichuk H.E. Mr. Mohinder Singh, Secretary to the Government of India, Ministry of Shipping and Transport, New Delhi, April 12, 1983 Excellency I have the honour to refer to our discussions in connection with the operation of the two Soviet lighter-carriers Tibor Szamuely and Yulius Fuchik and the letter exchanged between the Indian and the Soviet delegations today, i.e. April 12, 1983. It has been further agreed between the two delegations that the above mentioned vessels are to call only at the Port of Bombay and may provide upto 14 calls in a calendar year. Further, in case the circumstances change, the parties may by mutual consent review this arrangement. Kindly confirm that the above correctly sets out the agreement reached between us in this regard. Assuring you of my highest consideration Yours sincerely Sd/- MOHINDER SINGH H. E. Mr. V. M. NICHOLAICHUK, Deputy Minister, Soviet Ministry of Merchant Marine, Government of the U.S.S.R. New Delhi, April 12, 1983. Excellency, I acknowledge the receipt of your letter of 12 April 1983 which reads as follows: I have the honour to refer to our discussions in connection with the operation of the two Soviet lighter-carriers Tibor Szemuely and Yulius Fuchik and the letter exchanged between the Indian and the Soviet delegations today, i.e. April 12, 1983. It has been further agreed between the two delegations that the above mentioned vessels are to call only at the Port of Bombay and may provide upto 14 calls in a calendar year. Further, in case the circumstances change, the parties may by mutual consent review this agreement. Kindly confirm that the above correctly sets the agreement reached between us in this regard. Assuring you of my highest consideration. I have the honour to confirm that the contents of your letter correctly set out the understanding reached between us. Assuring you of my highest consideration Yours sincerely Sd/- V. M. NICOLAICHUK H. E. Mr Mohinder Singh, Secretary to the Government of India, Ministry of Shipping Transport, New Delhi [F. No. 480|l[81|FTD] C. K. TIKKU, Jt. Secy.