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TMI BlogConvention between Socialist Peoples' Libyan Arab Jamahiriya and the Government of the Republic of India for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income.X X X X Extracts X X X X X X X X Extracts X X X X ..... THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME. CHAPTER I SCOPE OF THE CONVENTION ARTICLE 1 TAXES COVERED 1. This Convention shall apply to taxes on income imposed on behalf of each Contracting State or local authorities, irrespective of the manner in which they are levied. 2. They shall be regarded as taxes on income, all taxes imposed on total income, or on elements of income. 3. The existing taxes to which this Convention shall apply are: A. With regard to the Socialist Peoples Libyan Arab Jamahiriya- (i) Real Estate Revenue Tax (ii) Agricultural Revenue Tax (iii) Taxes on Commercial, Industrial and Professional profits, which comprise- (a) taxes on profits realised from commercial, industrial and professional activities; (b) taxes on Companies. (iv) Taxes on profits realised by practising Fee Professions. (v) Taxes on wages, salaries and the like. (vi) Taxes on income realised abroad (vii) General Tax on income (viii) Al-Jihad Tax (Defence Tax) (ix) Income arising from depositing money in banks and savings accounts B. With regard to the Republic of India- (i) The Income-tax including a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... siness in which the business of the enterprise is wholly or partly carried on. 2. The term " permanent establishment " shall include especially: (a) a place of management (b) a branch (c) an office (d) a factory (e) a workshop (f) a mine, quarry or other place of extraction of natural resources; (g) a building or building site which continues for a period of more than three months. 3. The term " permanent establishment " shall not be deemed to include: (a) the use of facilities solely for the purpose of storage and display of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage and display; (c) the maintenance of a stock of goods of merchandise belonging to the enterprise solely for the purpose of processing by any other enterprise; (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods, or merchandise, or for collecting information, for the enterprise; (e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is a permanent establishment. 3. In the determination of the profits of a permanent establishment, there shall be allowed as deduction expenses which are incurred for the purpose of the permanent establishment whether such expenses have been incurred in the State in which the permanent establishment is situated or elsewhere in accordance with regulations of the State in which the income is taxable. 4. No profit shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purpose of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 6. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article. ARTICLE 7 SHIPPING AND AIR TRANSPORT Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective mana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience. 3. The term " royalties " as used in this Article shall exclude rentals and other income in respect of cinematographic films. Such rentals and income shall, for the purpose of this Convention, be considered the profits from business. ARTICLE 12 INDEPENDENT PERSONAL SERVICES 1. Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base. 2. The term " professional services " means independent activities according to the laws and regulations in force in each Contracting State. ARTICLE 13 DEPENDENT PERSONAL SERVICES Salaries, wages and similar emoluments arising in one of the Contracting States may be taxable in the State where the services giving ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss apprentice may derive from an employment in the other Contracting State: provided that such employment is related to his study or training and/or that the income deriving therefrom is required by the student or trainee to meet his living expenses. ARTICLE 19 PROFESSORS, TEACHERS AND RESEARCHERS A professor, teacher or research worker from one of the Contracting States who receives remuneration for teaching or carrying out research work during a period of temporary residence not exceeding three months at a university, college or/other institute of higher education or scientific research in the other Contracting State shall be exempt from tax in that other State, in respect of that remuneration, provided that the period of three months may be extended by similar periods. CHAPTER IV ELIMINATION OF DOUBLE TAXATION ARTICLE 20 TAX CREDITS 1. When a resident of a Contracting State derives income which has also suffered tax in the other Contracting State, the first mentioned State shall allow a deduction from its tax on the income of that person equal to the tax in the other Contracting State: provided that the deduction shall not exceed that part of the tax, as computed before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those States, present his case to the competent authority of the Contracting State of which he is a resident. 2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States. ARTICLE 23 EXCHANGE OF INFORM ..... X X X X Extracts X X X X X X X X Extracts X X X X
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