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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 ..... pplementary Protocol shall be given effect to in the Union of India. ANNEXURE (Please insert the Supplementary Protocol here) [No. 7788 F. No. 505/1/87-F.T.D] P. K. Appachoo, Jt. Secy. 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 (hereinafter referred to as " the agreement ") and the Protocol signed at Brussels on February 7, 1974, have decided to conclude for this purpose a Supplementary Protocol and have agreed upon the following articles: Article 1 The text of paragraph 3 of article 7 of the agreement is deleted and replaced by the following: " 3. In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 distribution is a resident. This term means also income-even paid in the form of interest-which is taxable under the head of income on capital invested by the members of a company other than a company with share capital, which is a resident of Belgium. 5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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, shall apply. 5. Royalties and fees for technical services 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 royalties or fees for technical services, whether he is a resident of a Contracting State or not, has in a C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dent 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 amount of dividends, interest or royalties so received after deduction of Indian tax, if any, at a rate which shall not be less than 15 per cent. in the case of dividends and interest and 20 per cent. in the case of royalties. " Article 8 The text of paragraph (c) of the Protocol to the agreement is deleted and replaced by the following: & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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