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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 ..... rnment 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 property (capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : (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) the term international traffic means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontracting 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 or construction or assembly project or supervisory activities in connection there with only if such site, project or activity lasts for more than six months. 3. Notwithstanding the preceding provisions of this Article, the term permanent establishment shall be deemed not to include: (a) the use of facilities solely for the purposes of stor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 establishment of the other. 7. An enterprise shall be deemed to have a permanent establishment in a Contracting State and to carry on business through that permanent establishment if it provides services or facilities in connection with, or supplies plant and machinery on hire used for or to be used in the prospecting for, or extraction or exploitation of mineral oils in that St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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 establishment shall be determined by the same method year by year unless there are good and sufficient reasons to the contrary. 6. Where the profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article. Article 8 International Traffic 1. Profits of an enterprise of a Contracting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 other rights, not being debt-claims, participating in profits, as well as income from other rights which is subjected to the same taxation treatment as income from shares under the laws of the Contracting State of which the company making the distribution is a resident. 4. 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 Contracting St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard 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 Contracting State in which 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 14, as the case may be, shall apply. 6. Interest shall be deemed to arise in a Contracting State when the payer is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agerial, 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 respect of 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 14, as the case may be, shall apply. 6. Royalties or fees for technical services shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties or fees for technical services, whether he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 circumstances when such income may also be taxed in the other Contracting State : (a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities, in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State ;or (b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in a period of twelve months; in that case, only so much of the income as is derived ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 framework of cultural or sports cooperation agreement between the Contracting States. In such a case, the income is taxable only in the Contracting State of which the entertainer or sportsperson is a resident, Article 18 GOVERNMENT SERVICE 1. (A) Remuneration, other than pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority Shall be taxable only in that State. (b) However, such remuneration shall be taxable only in the other Contracting Sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 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, college, or other similar institution in that Contracting State shall be exempt from tax in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date of his arrival in that other State. 2. This Article shall not apply to income from research if such research is undertaken primarily for the private benefit of a specific person or persons. 3. For the purposes of this Article and Article 20, an individual shall be deemed to be a resident of Contracting State if ho is resident in that Contracting State in the fiscal year in which he visits the other Contracting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cting 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 Republic of Belarus whether directly or by deduction; and as a deduction from the tax on the capital of that resident an amount equal to the property (capital) tax paid in the Republic of belarus. Such deduction in either case shall not, however, exceed that part of the income-tax or capital tax as computed before the deduction is given) which is attributable, as the case may be, to the income or the capital which may be taxed in the Republic of Belarus. 3. In the case of the Republic of Belarus, double taxation shall be eliminated as follow : Where a resident of the Republic of Belarus derives income which, in accordance with the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erprises 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 means taxes which are the subject of this Agreement. 6. Except where the provisions of Article 9, paragraph 7 of Article 11 of paragraph 7 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxation profits of such enterprises, be deductible under the same conditions as if they had been paid to a resident of the first mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxation capital of such enterpr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nformation 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 information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The competent authorities shall, through consultation, develop appropriate conditions, methods and techniques, the list of information and documents concerning the matters in respect of which such exchange of information shall be made, including, where appropriate, exchange of information regarding tax avoidance. The exchange of information or documents shall be on request of the competent authorities of the Contracting States. 2. In no case shall the provisions of paragraph 1 be construed as to impose on a Contracting State the obligation : (a) to carry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting 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 privileges of diplomatic or consular officials under the general rules of international law or under the provisions of special agreements. Article 30 ENTRY INTO FORCE 1. The Contracting States shall notify each other in writing, through diplomatic channels, the completion of the procedure required by the respective laws for the entry into force of this Agreement. 2. This Agreement shall enter into force thirty days after the receipt of the later of the notifications referred to in paragraph 1 of this Article. 3. The provisions of this Agreement shall have effect: (a) in India: (i) in respect of income arising in any fiscal year beginning or after the first day of April next following the calen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blic 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 part of the said Agreement. 1. For purposes of this Agreement, the term political subdivision as used in the Agreement shall be applicable to India only. 2. With reference to Article 4, it is understood that when establishing the place of effective management as used in paragraph 3 of Article 4, circumstances which may, interalia, be taken into account are the place where a company is actually managed and controlled, the place where the decision making at the highest level on important policies essential for the management of company takes place, the place that plays a leading part in the management of a company from an economic and functional point of view and the place where the relevant accounting books are kept. 3. For purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X
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