Amendment in Double Taxation Agreement with Finland - Exempting Interest paid to FINNVERA and Finnish Export Credit - 005/2008 - Income Tax

Amendment in Double Taxation Agreement with Finland - Exempting Interest paid to FINNVERA and Finnish Export Credit NOTIFICATION NO. 5/2008 DATED 10-1-2008 Whereas in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961) and section 44A of the Wealth-tax Act, 1957 (27 of 1957) read with item ( ii ) of sub-paragraph (a) of paragraph 3 of Article 12 of the Convention between the Government of the Republic of India and the Government of the Republic of Finland for the avoidance of double taxation with respect to taxes on income and on capital, the competent authorities of the Republic of India and the Republic of Finland have agreed to include FINNVERA and Finnish Export Credit in the list of institutions mentioned in item ( ii ) of sub-paragraph ( a ) of paragraph 3 of Article 12 of the said Convention. And whereas the competent authority of the Republic of Finland vide their letter dated 15th February, 2007 has proposed to the competent authority of the Government of the Republic of India to consider to include FINNVERA and Finnish Export Credit to the list of those institutions referred in item ( ii ) of sub-paragraph ( a ) of paragraph 3 of Article 12 of the Convention and the competent authority of India vide their letter D.O. No. 501/13/80-FTD-I, dated 28th August, 2007 has conveyed their consent to the said proposal and thereby constituting a mutual agreement between the competent authorities of the Contracting States in the matter as required under the said Convention. Now, therefore, under the provisions of paragraph 3 of Article 12 of the Convention between the Government of the Republic of India and the Government of the Republic of Finland for the avoidance of double taxation with respect to taxes on income and on capital, interest arising in India shall be exempt from Indian tax if the interest is paid to FINNVERA or Finnish Export Credit on or after 28th day of August, 2007. [F. No. 501/13/80-FTD-I]