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TMI BlogModifying and Supplementing the Agreement between India and Japan for the Avoidance of Double TaxationX X X X Extracts X X X X X X X X Extracts X X X X ..... the avoidance of double taxation in respect of taxes on income, signed at New Delhi on January 5, 1960, Have agreed as follows: Article Sub-paragraph (a) of paragraph (1) of Article I shall be amended as follows: 1. By deleting the expression " the Indian Income-tax Act, 1922 (11 of 1922) " and replacing it by the expression " the Income-tax Act, 1961 (43 of 1961) ", 2. By deleting the expression, " this the super tax ", and 3. By inserting the expression " and the surtax imposed under the Companies (Profits) Surtax Act, 1964 (7 of 1964) " immediately before the expression " (hereinafter referred to as ' Indian tax '). " Article II Sub-paragraph (i) of paragraph (1) of Article II shall be amended by inserting the following immediately after sub-paragraph (iii) thereof: " (iiia) An enterprise of one of the Contracting States shall not be deemed to have a permanent establishment in the other Contracting State if it maintains a fixed place of business solely for the purpose of advertising, for the supply of information or for scientific research, being activities solely of a preparatory or auxiliary character in the trade or business of the enterprise. " Article III Arti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratified and the instruments of ratification shall be exchanged at Tokyo as soon as possible. 2. The present Protocol shall enter into force on the thirtieth day after the date of exchange of instruments of ratification and shall be applicable- (i) on the part of India, in respect of any assessment year commencing on or after the 1st day of April, 1967; and (ii) on the part of Japan, in respect of any taxable years beginning on or after the 1st day of January, 1966. 3. The present Protocol shall continue in force as long as the aforesaid Agreement remains in force. However, the provisions of paragraph 1 of Article IV of the present Protocol shall be applicable for a period of five years from the date on which the present Protocol shall become applicable as long as the aforesaid Agreement remains in force, provided that on expiry of such period, the two Governments will consult each other with a view to extending further such period by mutual agreement. IN WITNESS WHEREOF, the representatives of the two Governments duly authorized for the purpose, have signed the present Protocol. DONE at New Delhi in duplicate in the English language this eighth day of of April, 1969. For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy, the assurances of my highest consideration. (Sd.) P. C. SETHI, His Excellency Mr. Shinsaku Hogen, Ambassador Extraordinary and Plenipotentiary of Japan to India. New Delhi, April 8, 1969. Excellency, I have the honour to acknowledge the receipt of Your Excellency's Note of today's date which reads as follows: " I have the honour to refer to the Protocol modifying and supplementing the Agreement between India and Japan for the avoidance of double taxation in respect of taxes on income, which was signed today and to state the following on behalf of the Government of India. 1. With reference to paragraph 3 of Article I of the Protocol: the surtax has been the subject of the Agreement before modification under the provisions of paragraph (2) of Article I of the Agreement before modification, since its introduction in India by the Companies (Profits) Surtax Act of 1964. 2. With reference to sub-paragraph (i), (ii) of paragraph (1) of Article II of the Agreement: for the purposes of the said sub-paragraph, where a resident of one of the Contracting States fulfils an order for the sale of plant or machinery to a resident of the other Contracting State and it is incident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e special incentive measures designed to promote economic development in India, effective on the date of signature of present Protocol " referred to in the said sub-paragraph. (i) Section 10(4)-relating to exemption from tax on interest payable to a non-resident on any security notified by the Government of India; (ii) Section 10(15)(iv)-relating to exemption from tax of (a) a non-resident in respect of moneys lent by him to the Government or a local authority in India; (b) an approved foreign financial institution in respect of interest on moneys lent by it to an industrial undertaking in India under a loan agreement; and (c) a non-resident in respect of interest on moneys lent or credit facilities allowed by him to an industrial undertaking in India for the purchase outside India of raw materials or capital plant and machinery; (iii) Section 10(28)-relating to exemption from tax on the amount of tax credit certificates granted under the provisions of Chapter XXII-B; (iv) Section 33-relating to development rebate in respect of ships, machinery or plant; (v) Section 33A-relating to development allowance for planting or replanting of tea bushes; (vi) Section 54A-relating to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961 (43 of 1961), of India, effective on the date of signature of the aforesaid Protocol are " the special incentive measures designed to promote economic development in India, effective on the date of signature of the present Protocol " referred to in the said sub-paragraph. (i) Section 10(4)-relating to exemption from tax on interest payable to a non-resident on any security notified by the Government of India; (ii) Section 10(15)(iv)-relating to exemption from tax of (a) a non-resident in respect of moneys lent by him to the Government or a local authority in India; (b) an approved foreign financial institution in respect of interest on moneys lent by it to an industrial undertaking in India under a loan agreement; and (c) a non-resident in respect of interest on moneys lent or credit facilities allowed by him to an industrial undertaking in India for the purchase outside India of raw materials or capital plant and machinery; (iii) Section 10(28)-relating to exemption from tax on the amount of tax credit certificates granted under the provisions of Chapter XXII-B; (iv) Section 33-relating to development rebate in respect of ships, machinery or plant; (v) Section 33A-rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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