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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 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 context otherwise requires: (a) the terms "one of the territories" and "the other territory" mean Austria or India as the context requires; (b) the term "person" includes individuals, companies and all other entities which are treated as taxable units under the tax laws in force in the respective territories; (c) the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 intermediary between an enterprise of one of the territories and a prospective customer in the other territory shall not be deemed to be permanent establishment of the enterprise in the last-ment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices, 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 independent enterprises, then any profits which but for those conditions would have accrued to one of the enterprises but by reason of those conditions have not so accrued may be included in the profits of that enterprise and taxed accordingly. ARTICLE V (1) Income derived from the operation of aircraft by an enterprise of one of the territories shall not be taxed in the other terri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed to be in the territory where the company is incorporated. (2) In this Article the term "capital asset" does not include movable property in the form of personal effects (e.g., wearing apparel, jewellery and furniture) held for personal use by the taxpayer or any member of his family dependent on him. ARTICLE XII (1) Remuneration for services rendered (other than pensions and annuities) paid out of public funds of India shall not be taxed in Austria unless the payment is made to a national of India for services rendered therein. (2) Remuneration for services rendered (other than pensions and annuities) paid out of public funds of India shall not be taxed in Austria unless the payment is made to a national of Austria for services rendered therein. (3) The provisions of paragraphs (1) and (2) of this Article shall not apply to payments in respect of services in connection with any trade or business carried on by either of the Contracting Parties or political sub-divisions thereof for purposes of profit. (4) The provisions of paragraphs (1) and (2) of this Article shall also apply to remuneration other than pensions and annuities, paid by the Austrian National Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not exceeding two years, at a university, college, school or other educational institution in the other territory, shall not be taxed in that other territory in respect of that remuneration. ARTICLE XVI (1) An individual from one of the territories who is temporarily present in the other territory solely- (a) as a student at a university, college or school in that other territory, (b) as a business apprentice, or (c) as the recipient of a grant, allowance or award for the primary purpose of study or research from a religious, charitable, scientific or educational organisation, shall not be taxed in the other territory in respect of remittances from abroad for the purposes of his maintenance, education or training, in respect of a scholarship, and in respect of any amount representing remuneration for an employment which he exercises in that other territory for the purposes of practical training. (2) An individual from one of the territories who is temporarily present in the other territory for a period not exceeding one year, as an employee of, or under contract with, an enterprise of the former territory or an organisation referred to in paragraph (1), sub-paragraph (c) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the taxation authorities of the other territory has resulted or will result in double taxation contrary to the provisions of the present Convention, he shall be entitled to present his case to the competent authority of the territory of which he is a resident. Should his claim be deemed worthy of consideration, the competent authority to which the claim is made shall endeavour to come to an agreement with the competent authority of the other territory with a view to avoiding double taxation. (2) Should any difficulty or doubt arise as to the interpretation or application of the present Convention the competent authorities of both territories may settle the question by mutual agreement. ARTICLE XX The provisions of the present Convention shall not be construed to restrict in any manner any exemption, deduction, credit or other allowance now or hereafter accorded by the laws of one of the Contracting States in determining the tax of that Contracting State. ARTICLE XXI (1) The present Convention shall be ratified. (2) The instruments of ratification shall be exchanged at Vienna as soon as possible. (3) The present Convention shall enter into force upon the exchange of ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntion, and that in such case, this note and your reply thereto shall be deemed to be part of the Convention Please accept, Mr. Ambassador, the assurance of my high consideration. SHRIMATI TARKESHWARI SINHA To His Excellency Dr. George Schlumberger, Ambassador of the Republic of Austria in India, New Delhi. NEW DELHI, the 24th September, 1963. Madam, With reference to the Convention, signed today, between the Republic of Austria and the Republic of India for the avoidance of Double Taxation with respect to taxes on income, you have informed me of the following: "The Convention between the Republic of India and the Republic of Austria for the avoidance of Double Taxation with respect to taxes on income being signed today, I have the honour, on behalf of the Government of India, to inform you that where a resident of one of the territories fulfils an order for the sale of machinery to a resident of the other territory and it is incidental to the sale of the machinery that a person or persons employed by the resident of the first-mentioned territory should proceed to that other territory for assisting in the installation of the machinery therein, such activity shall no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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