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TMI BlogSupplementary Protocol modifying the agreement between the Government of India and the Government of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on incomeX X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1961 (43 of 1961), and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that all the provisions of the said Supplementary Protocol shall be given effect to in the Union of India. ANNEXURE (Please insert the Supplementary Protocol here) ( Sd. ) P. K. Appachoo, Joint Secretary to the Government of India . SUPPLEMENTARY PROTOCOL MODIFYING THE AGREEMENT BETWEEN THE GOVERNMENT OF INDIA AND THE GOVERNMENT OF BELGIUM FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND THE PROTOCOL SIGNED AT BRUSSELS ON FEBRUARY 7, 1974 . The Government of India and the Government of Belgium, Desiring to modify in certain respects the agreement between the Government of India and the Government of Belgium for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a company which is a resident of the other Contracting State, the tax so charged shall not exceed 15 per cent. of the gross amount of the dividends. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 3. The provisions regarding the reduction in the rate of tax in paragraph 2 shall apply in respect of dividends arising out of investments made after the entry into force of the Supplementary Protocol modifying this agreement. 4. The term " dividends " as used in this Article means income from shares, " jouissance " shares or " jouissance " rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... btor's profits, and in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures; however, the term " interest " shall not include for the purpose of this article penalty charges for late payment nor interest regarded as dividends under the second sentence of paragraph 4 of article 10. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 15, as the case may be, shall apply. 5. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... information concerning industrial, commercial or scientific experience. (b) The term " fees for technical services " as used in this article means payments of any kind to any person, other than payments to an employee of the person making the payments and to any individual for independent personal services mentioned in article 15, in consideration for services of a managerial, technical or consultancy nature, including the provision of services of technical or other personnel. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties or fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or fees for technical services arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which, or the contract under which, the royalties or fees for technical services are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of article 7 or article 15, as the case may be, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exceeding in the aggregate 183 days during the relevant taxable period; or (b) he has a fixed base regularly available to him in Belgium for the purpose of performing his services or activities; but in each case, only so much of the income as is attributable to those services or activities. 3. The term " professional services " includes independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. " Article 7 The text of sub-paragraph (c) of paragraph 3 of article 23 of the agreement is deleted and replaced by the following: " (c) Where a resident of Belgium receives income by way of dividends referred to in article 10 (not being dividends covered by sub-paragraph (b) of this paragraph) or interest referred to in article 11 or royalties referred to in paragraph 3(a) of article 12 of this agreement, Belgium shall allow, against the Belgian tax chargeable on such income, a credit in respect of tax chargeable in India on such income, whether actually charged or spared. The amount of the credit to be so allowed shall be computed on the gross amou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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