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TMI BlogConvention between the Republic of India and the Republic of Austria for the avoidance of double taxationX X X X Extracts X X X X X X X X Extracts X X X X ..... Convention for the avoidance of double taxation with respect to taxes on income, have agreed as follows: Article I (1) The taxes which are the subject of the present Convention are: (a) In Austria: (i) the Einkommensteuer (income-tax); (ii) the Korperschaftsteuer (corporation tax); (iii) the Beitrag vom Einkommen zur Forderung des Wohnbaues und fur Zwecke des Familienlastenausgleiches (Contribution from income for the promotion of residential building and for the equalisation of family burdens); (hereinafter referred to as "Austrian tax"); (b) In India: (i) the income-tax, (ii) the super-tax and (iii) the surcharge imposed under the Income-tax Act, 1961 (43 of 1961); (hereinafter referred to as "Indian tax"). (2) The present Convention shall also apply to any other taxes of a substantially similar character imposed in Austria or in India subsequently to the date of signature of the present Convention. Article II (1) In the present Convention, unless the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchase of goods or merchandise and not for any processing of such goods or merchandise in the territory of purchase, shall not constitute a permanent establishment. (dd) A person acting in one of the territories for or on behalf of an enterprise of the other territory shall be deemed to be a permanent establishment of that enterprise in the first-mentioned territory, if- 1. he has and habitually exercises in the first-mentioned territory a general authority to negotiate and enter into contracts for or on behalf of the enterprise, unless the activities of the person are limited exclusively to the purchase of goods or merchandise for the enterprise, or 2. he habitually maintains in the first-mentioned territory a stock of goods or merchandise belonging to the enterprise from which the person regularly delivers goods or merchandise for or on behalf of the enterprise, or 3. he habitually secures orders in the first-mentioned territory exclusively or almost exclusively, for the enterprise itself, or for the enterprise and other enterprises which are controlled by it or have a controlling interest in it. (ee) A broker of a genuinely independent status who merely acts as an inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions of paragraph (1) of this article shall not be construed as preventing the taxation in one of the territories in pursuance of the present Convention and in conformity with the laws of that territory of income (e.g., dividends, interest, capital gains, fees for technical services, income from the operation of aircraft, rents or royalties or income from immovable property) derived from sources therein by a resident of the other territory even if such income is not attributable to a permanent establishment situated in that former territory. Article IV Where- (a) an enterprise of one of the territories participates directly or indirectly in the management, control or capital of an enterprise of the other territory, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory, and in either case conditions are made or imposed between the two enterprises, in their commercial or financial relations, which differ from those which would be made between indep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Article IX Interest on bonds, securities, notes, debentures or any other form of indebtedness, derived by a resident of one of the territories from sources in the other territory may be taxed only in that other territory. Article X Income from immovable property may be taxed only in the territory in which the property is situated. For this purpose any rent or royalty or other income derived from the operation of a mine, quarry or any other place of extraction of natural resources shall be regarded as income from immovable property. Article XI (1) Capital gains derived from the sale, exchange or transfer of a capital asset, whether movable or immovable, may be taxed only in the territory in which the capital asset is situated at the time of such sale, exchange or transfer. For this purpose, the situs of the shares of a company shall be deemed to be in the territory where the company is incorporated. (2) In this Article the term "capital asset" does not includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a on profits or remuneration referred to in paragraph (1) if- (a) he is temporarily present in India for a period or periods not exceeding in the aggregate 183 days during the relevant "previous year", (b) the services are rendered for or on behalf of a resident of Austria, (c) the profits or remuneration are subject to Austrian tax, and (d) the profits or remuneration are not deducted in computing the profits of an enterprise chargeable to Indian tax. (3) An individual who is a resident of India shall not be taxed in Austria on profits or remuneration referred to in paragraph (1) if- (a) he his temporarily present in Austria for a period or periods not exceeding in the aggregate 183 days during a taxable year, (b) the services are rendered for or on behalf of a resident of India, (c) the profits or remuneration are subject to Indian tax, and (d) the profits or remuneration are not deducted in computing the profits of an enterprise chargeable to Austrian tax. (4) Where an individual permanently or predominantly performs services on ships or aircraft operated by an enterprise of one of the territories, such services shall be deemed to be performed in that territo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in force in either of the territories will continue to govern the assessment and taxation of income in the respective territories except where express provision to the contrary is made in this Convention. (2) Income from sources within Austria which in accordance with this Convention may be subjected to tax in Austria either directly or by deduction shall not be subject to Indian tax. (3) Income from sources within India which in accordance with this Convention may be subjected to tax in India either directly or by deduction shall not be subject to Austrian tax. (4) Notwithstanding the provisions of paragraphs (2) and (3) of this Article the items of income which under the laws of the two territories should be taken into account for calculating the rate of tax to be imposed shall continue to be so taken into account. Article XVIII The competent authorities shall exchange such information (being information which is at their disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the provisions of the present Conv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Article XXII The present Convention shall continue in effect indefinitely but either of the Contracting Parties may on or before the 30th of June in any calendar year after 1965 give to the other Contracting Party notice of termination and, in such event, the present Convention shall cease to be effective- (a) in respect of Austrian tax, for taxes which are levied for the calendar years following the year in which the notice of termination is given, and (b) in respect of Indian tax, in relation to the income which arises on or after the 1st of January following the year in which the notice of termination is given. In witness whereof the undersigned Plenipotentiaries have signed the present Convention. Done in duplicate at New Delhi, in the English language, This 24th day of September, 1963. For the Republic of India: SHRIMATI TARKESHWARI SINHA, Deputy Minister of Finance Government of India. For the Republic of Austria: DR. GEORGE SC ..... 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