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TMI BlogProtocolX X X X Extracts X X X X X X X X Extracts X X X X ..... N WITH RESPECT TO TAXES ON INCOME SIGNED IN INDIA ON 24TH JANUARY 1994 The Government of the Republic of Singapore and the Government of the Republic of India, Desiring to conclude a Protocol to amend the Agreement between the Government of the Republic of Singapore and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed in India on 24th January 1994 (hereinafter referred to as the Agreement), Have agreed as follows: ARTICLE 1 5[****] ARTICLE 2 3[***] ARTICLE 3 6[****] ARTICLE 4 Paragraph 2 of Article 12 (Royalties and Fees for Technical Services) of the Agreement shall be deleted and replaced by the following paragraph: 2. However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the royalties or fees for technical services, the tax so charged shall not exceed 10%. ARTICLE 5 7[****] ARTICLE 6 8[****] ARTICLE 7 This Protocol, which shall form an integral part of the Agreement, shall come into force on 1 Augus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political sub-divisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2. 2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: (a) to carry ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, in the Hindi and English languages, both texts being equally authentic. In the case of divergence between the two texts, the English text shall be the operative one.] 4[Whereas, a Third Protocol amending the Agreement between the Government of the Republic of India and the Government of the Republic of Singapore for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was signed at New Delhi on the 30th day of December, 2016 (hereinafter referred to as the Third Protocol); And whereas, the Third Protocol entered into force on the 27th day of February, 2017, being the date of the later of the notifications of the completion of the procedures as required by the respective laws for the entry into force of the Third Protocol, in accordance with Article 6 of the Third Protocol; Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the Third Protocol, as annexed hereto, shall be given effect to in the Union of India. Annexure "THIRD PROTOCOL AMENDING THE AGREEMENT BETWEEN THE GOVERNMENT OF TH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o in paragraph 4B of this Article which arise during the period beginning on 1 April 2017 and ending on 31 March 2019 may be taxed in the State of which the company whose shares are being alienated is a resident at a tax rate that shall not exceed 50% of the tax rate applicable on such gains in that State. 5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3, 4A and 4B of this Article shall be taxable only in the Contracting State of which the alienator is a resident." Article 3 The Agreement is amended by adding after Article 24, the following Article, with effect from 1 April 2017: "Article 24A 1. A resident of a Contracting State shall not be entitled to the benefits of paragraph 4A or paragraph 4C of Article 13 of this Agreement if its affairs were arranged with the primary purpose to take advantage of the benefits in the said paragraph 4A or paragraph 4C of Article 13 of this Agreement, as the case may be. 2. A shell or conduit company that claims it is a resident of a Contracting State shall not be entitled to the benefits of paragraph 4A or paragraph 4C of Article 13 of this Agreement. A shell or conduit company is any legal e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tes shall complete the procedures required by its law for the bringing into force of this Protocol and notify the other State about such completion of the procedures. This Protocol shall enter into force on the date of the later of these notifications. If this Protocol does not enter into force as at 31 March 2017 due to either of the aforesaid notifications remaining pending, this Protocol shall enter into force on 1 April 2017. Article 7 This Protocol, which shall form an integral part of the Agreement, shall remain in force as long as the Agreement remains in force and shall apply as long as the Agreement itself is applicable. IN WITNESS WHEREOF, the undersigned, duly authorised thereto by their respective Governments, have signed this Protocol. DONE in duplicate at New Delhi on this 30th day of December, 2016, in the English and Hindi languages, both texts being equally authentic. In the case of divergence between the two texts, the English text shall be the operative one.] ************** NOTES: - 1. Inserted vide Notification No. 185/2005 dated 18-7-2005. 2. Inserted vide Notification No. 47/2011, Dated 1-9-2011. 3. Omitted vide Notification No. 47/2011, Dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The cases of legal entities not having bona fide business activities shall be covered by Article 3.1 of this Protocol.)
7.
Omitted vide NOTIFICATION NO. 18/2017 dated 23-03-2017 w.e.f. 01-04-2017 before it was read as:-
"ARTICLE 5
It is agreed that there shall be an inter-governmental group consisting of representatives of the revenue authorities of the two Contracting States which shall review the working of the provisions of this Protocol at least once a year or earlier at the request of either Contracting State and may make recommendations for improvements including improvements to the provisions of this Protocol."
8
Omitted vide NOTIFICATION NO. 18/2017 dated 23-03-2017 w.e.f. 01-04-2017 before it was read as:-
"ARTICLE 6
Articles 1, 2, 3 and 5 of this Protocol shall remain in force so long as any Convention or Agreement for the Avoidance of Double Taxation between the Government of the Republic of India and the Government of Mauritius provides that any gains from the alienation of shares in any company which is a resident of a Contracting State shall be taxable only in the Contracting State in which the alienator is a resident."
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