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TMI BlogAgreement between the Government of the Republic of India and the Government of the Republic of Belaru for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxesX X X X Extracts X X X X X X X X Extracts X X X X ..... nt hereby directs that all the provisions of the said Agreement shall be given effect to in the Union of India. [Notification No. 10646/F.No. 501/7/92-F.T.D.] A.N. PRASAD, Jt. Secy. AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE REPUBLIC OF BELARUS For the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on property (Capital) The Government of the Republic of India and the Government of the Republic of Belarus desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on property (capital) have agreed as follows: Article 1 PERSONAL SCOPE This Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2 TAXES COVERED 1. This Agreement shall apply to taxes on income and on property (capital) imposed on behalf of a Contracting State or of its political sub divisions or local authorities, irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income and on property (capital) all taxes imposed on total income, on total pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting States; (f) the term "company" means : (i) in India, any body corporate or other entity which is treated as a company or body corporate under the taxation was in force ; (ii) in belarus, any legal person or any entity which is treated as a legal person for tax purposes ; (g) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State ; (h) the term "Competent authority" means : (i) in the case of India, the Central Government in the Ministry of Finance (Department of Revenue) or their authorised representative ; (ii) in the case of Belarus, the State Tax Committee or its authorised representative; (i) the term "national" means : (i) any individual possessing the nationality of a Contracting State; (ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State ; (j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ividual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated. If the State in which its place of effective management is situated can not be determined, then the competent authorities of the Contracting States shall settle the question by mutual agreement. Article 5 Permanent Establishment 1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on, 2. The term "permanent establishment" in eludes especially : (a) a place of management; (b) a branch ; (c) an office; (d) a factory; (e) a workshop; (f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources ; (g) a warehouse in relation to a person providing storage facilities for others ; (h) a farm, plantation or other place where agriculture, forestry, plantation, or related activities are carried on ; (i) a sales outlet; (j) an installation or structure used for the exploration or exploitation of natural resources; (k) a building site o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintains in the firs-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise. 5. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, a commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise itself or on behalf of that enterprise and other enterprises controlling, controlled by, or subject to the same common control, as that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph. 6. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State or which carries on business in that other Contracting State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might make if it were a separate independent enterprise engaged in the same or similar activities under the same or similar conditions and acting wholly independently with the enterprise of which it is a permanent establishment. 3. In determining the profits of a permanent establishment, there shall be allowed as deduction expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere, in accordance with the provisions of and subject to the limitations of the taxation laws of that State. 4. No profits shall be attributed to a permanent establishment by reason of the mere purchase of goods or merchandise by that permanent establishment for the enterprise, 5. For the purpose of the preceding paragraphs, the profits to be attributed to the permanent est ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... differ from those which would be made between independent enterprises, then any profits which 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 10 Dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other Contracting 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 recipient is the beneficial owner of the dividends the tax so charged shall not exceed : (a) 10 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 25 per cent of the shares of the company paying the dividends ; (b) 15 per cent of the gross amount of the dividends in all other cases. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid, 3. The term "dividends" as used in this Article means income from shares or o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons that may be mutually agreed upon between the two Contracting States. (b) interest arising in a Contracting State shall be exempt from tax in that Contracting State to the extent approved by the Government of that State if it is derived and beneficially owned by any person, other than a person referred to in sub-paragraph (a), who is a resident of the other Contracting State, provided that the transaction giving rise to the debt-claim has been approved in this regard by the Government of the first mentioned Contracting State. 4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor'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. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. 5. 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 Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht of literary, artistic or scientific work, including cinematography films or films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. 4. The term "fees for technical services" as used in this Article means payment of any kind in consideration for the rendering of any managerial, technical or consultancy services including the provision of services by technical or other personnel but does not include payments for services mentioned in Articles 14 and 15 of this Agreement. 5. 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, property or contract in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 3. Gains from the alienation of ships or aircraft operated in international traffic or property other than immovable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State of which the alienator is a resident. 4. Gains from the alienation of shares of the capital stock of a company the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that State. 5. Gains from the alienation of shares other than those mentioned in paragraph 4 in a company which is a resident of a Contracting State may be taxed in that State. 6. Gains from the alienation of any property other than that referred to in paragraphs 1,2,3,4 and 5 shall be taxable only in the Contracting State of which the alienator is a resident. Article 14 Independent Persona) Services 1. Income derived by a resident of a Contracting State from the performance of professional services or other independent activities of a similar character shall be taxable only in that State except in the following circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any which is a resident of the other Contracting State may be taxed in that other State. Article 17 ARTISTS AND SPORTSPERSONS 1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson from his personal activities as such exercised in the other Contracting State may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such accrues not to the entertainer or sportsperson himself but to another person, such income may, notwithstanding the provisions of Articles 7, 14 and 15 be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised. 3. The provisions of paragraphs 1 and 2, shall not apply to income from activities performed in a Contracting State by entertainers or sportspersons if the visit to that State is supported wholly by public funds of one or both of the Contracting States of political subdivisions or local authorities thereof or the activity is exercised within the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting State and who is present in that other State solely for the purpose of his education or training, shall be exempt from tax in that other State on : (a) payments made to him by persons residing outside that other State for the purposes of his maintenance, education or training; and (b) remuneration from employment in that other State for an amount not exceeding the amount which is exempt from tax under the laws of the other Contracting State for any fiscal year; provided that such employment is directly related to his studies or is undertaken for the maintenance. 2. The benefits of this Article shall extend only for such period of time as may be reasonable or customarily required to complete the education or training undertaken, but in no event shall any individual have the benefits of this Article, for more than five consecutive years from the date of his first arrival in that other Contracting State. Article 21 PROFESSORS, TEACHERS AND RESEARCH SCHOLARS 1. A professor or teacher who is or was a resident of one of the Contracting State immediately before visiting the other Contracting State for the purpose of teaching or engaging in research, or both, at a university, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pendent personal services, may be taxed in that other State. 3. Property (Capital) represented by ships and aircraft operated in international traffic or by boats engaged in inland waterways transport and by property other than immovable property pertaining to the operation of such ships, boats and aircraft shall be taxable only in the Contracting State of which the owner of such ships, boats, aircraft or property is a resident. 4. All other elements of property (Capital) or a resident of a Contracting State shall be taxed only in that State. Article 24 ELIMINATION OF DOUBLE TAXATION 1. The laws in force in either of the Contracting State shall continue to govern the taxation of income and property (Capital) on the respective Contracting State except where express provision to the contrary is made in this Agreement, 2. In the case of India, double taxation shall be elimination as follows : Where a resident of India derivers income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in the Republic of Belarus, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in the Republi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from charging the profits of a permanent establishment which an enterprise of the other Contracting State, has in the first-mentioned State at a rate of tax which is higher than that imposed on the profits of a similar enterprise of the first-mentioned Contracting State, nor as being in conflict with the provisions of paragraph 3 of Article 7 of this Agreement, 3. Nothing contained in this Article shall be construed as obliging a Contracting State to grant to persons not resident in that State any personal allowances, reliefs, reductions and deductions for taxation purposes which are by law available only to persons who are so resident. 4. Enterprises of a Contracting State the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome that the taxation and connected requirements to which other similar enterprises of the firstmentioned State may be subjected in the same circumstances and under the same conditions. 5. In this Article, the term "taxation" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach an 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 27 EXCHANGE OF INFORMATION 1. The competent authorities of the Contracting States shall exchange such information (including domestics) as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the Agreement, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Article 1. Any information received by a Contracting States shall be treated as actor in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment, or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Agreement. Such persons or authorities shall use the informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as is required by the laws of the Republic of Belarus to establish that the taxes have been finally determined and are due from the taxpayer. 5. Where that tax claim has not become final by reason of its being subject to appeal or any other proceeding, a Contracting State may, in order to protect its revenues, request the other Contracting State to take such interim measures in this behalf as are lawful under the laws of that other Contracting State. 6. A request for assistance in collection of taxes due from a taxpayer shall be made only if adequate assets of that taxpayer are not available for recovering the taxes from him in the Contracting State making the request. 7. The Contracting State in which tax is recovered in persuance of paragraphs 1, 2 and 5 of this Article shall immediately thereafter remit the amount so recovered to the Contracting State which made the request but it shall be entitled to reimbursement of actual costs, if any, incurred in the course of rendering assistance to the extent mutually agreed between the competent authorities of the Contracting States. Article 29 DIPLOMATIC AND CONSULAR OFFICIALS Nothing in this Agreement shall affect the fiscal priv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owing the year in which the notice is given; (ii) in respect of other taxes on income or taxes on property (capital) to such taxes chargeable in any taxable year beginning on or after 1st of January in the calendar year next following the year in which the notice is given. In witness whereof, the undersigned, being duly authorised thereto have signed the present Agreement. Done in duplicate at New Delhi, this 27th day of September, 1997 in Hindi, Belarusian and English languages, all the texts being equally authentic. In case of divergence between any of the texts, the English text shall be the operative one. For the Government of the Republic of India (P. Chidambaram) Minister of Finance For the Government of the Republic of Belarus (Mikhail Marinich) Minister of External Economic Relations PROTOCOL The Government of Public of India and the Government of the Republic of Belarus have agreed at the signing at New Delhi on 27th September, 1997 of the Agreement between the two states for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on property (capital) upon the following provisions which shall form an integral ..... X X X X Extracts X X X X X X X X Extracts X X X X
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