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TMI BlogAgreement between the Government of the Republic of India and Government of Republic of India and the Government of Greece 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 ..... bject of the present Agreement are: (a) in India: the income-tax, the super tax, the surcharge, imposed under the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as Indian tax ); (b) in Greece: the tax on physical persons and the income-tax on legal entities, and any special tax levied in Greece with reference to freight earned by shipping enterprises by the carriage of passengers, livestock or goods, imposed under the Royal Decrees No. 3323/1955 and 3843/1958 and the Law No. 1880/1951 (hereinafter referred to as Greek tax ). 2. The present Agreement shall also apply to any other taxes of substantially similar character imposed in India or Greece subsequent to the date of signature of the present Agreement. ARTICLE 2 DEFINITIONS 1. In the present Agreement, unless the context otherwise requires, (a) the term Greece means the territory of the Kingdom of Greece; (b) the terms one of the territories and the other territory mean Greece or India as the context requires; (c) the term person includes natural persons, companies and all other entities which are treated as taxable units under the tax laws in force in the respective territories; (d) the term company means any entit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the person are limited exclusively to the purchase of goods or merchandise for the enterprise, or (2) he habitually maintains in the first-mentioned territory a stock of goods or merchandise belonging to the enterprise from which the person regularly delivers goods or merchandise for or on behalf of the enterprise, or (3) he habitually secures orders in the first-mentioned territory wholly or almost wholly for the enterprise itself or for the enterprise and other enterprises which are controlled by it or have a controlling interest in it; (ee) a broker of a genuinely independent status who merely acts as an intermediary between an enterprise of one of the territories and a prospective customer in the other territory shall not be deemed to be a permanent establishment of the enterprise in the last-mentioned territory; (ff) the fact that a company, which is a resident of one of the territories has a subsidiary company which either is a resident of the other territory or carries on a trade or business in that other territory (whether through a permanent establishment or otherwise) shall not, of itself, constitute that subsidiary company a permanent establishment of its parent compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... labour or personal services or income from the operation of ships or aircraft. ARTICLE 4 BUSINESS PROFIT Where (a) an enterprise of one of the territories participates directly or indirectly in the management, control or capital of an enterprise of the other territory, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of one of the territories and an enterprise of the other territory, and in either case conditions are made or imposed between the two enterprises, in their commercial or financial relations, which differ from those which would be made between independent enterprises, then any profits which but for those conditions would have accrued to one of the enterprises but by reasons of those conditions have not so accrued may be included in the profits of that enterprise and taxed accordingly. ARTICLE 5 AIR TRANSPORT 1. Income derived from the operation of aircraft by an enterprise of one of the territories shall not be taxed in the other territory, unless the aircraft is operated wholly or mainly between places within that other territory. 2. Paragraph (1) shall likewise apply in respect of participations in pools ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the operation of mines, quarries or other natural resources. ARTICLE 8 DIVIDENDS Dividends paid by a company which is a resident of one of the territories to a resident of the other territory may be taxed only in the first-mentioned territory. ARTICLE 9 INTEREST ON BONDS Interest on bonds, securities, notes, debentures or any other form of indebtedness derived by a resident of one of the territories from sources in the other territory may be taxed only in that other territory. ARTICLE 10 INCOME FROM IMMOVABLE PROPERTY Income from immovable property may be taxed only in the territory in which the property is situated. For this purpose, any rent or royalty or other income derived from the operation of a mine, quarry or any other place of extraction of natural resources shall be regarded as income from immovable property. ARTICLE 11 CAPITAL GAINS Capital gains derived from the sale, exchange or transfer of a capital asset, whether movable or immovable, may be taxed only in the territory in which the capital asset is situated at the time of such sale, exchange or transfer. ARTICLE 12 REMUNERATION 1. Remuneration other than pensions and annuities, paid in Greece for services rendered th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... muneration are not deducted in computing the profits of an enterprise chargeable to Indian tax. 4. Where an individual permanently or predominantly performs services on ships or aircraft in international traffic operated by an enterprise of one of the territories, profits or remuneration from such services may be taxed only by the country of which the individual is resident. ARTICLE 15 PROFESSORS AND TEACHERS A professor or teacher from one of the territories, who receives remuneration for teaching, during a period of temporary residence not exceeding two years, at a university, college, school or other educational institution in the other territory, shall not be taxed in that other territory in respect of that remuneration. ARTICLE 16 STUDENTS AND APPRENTICES An individual from one of the territories who is temporarily present in the other territory solely (a) as a student at a university, college or school in such other territory, (b) as a business apprentice, or (c) as the recipient of a grant, allowance or award for the primary purpose of study or research from a religious, charitable, scientific or educational organisation, shall not be taxed in the other territory in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eement, he shall be entitled to present his case to the competent authority of the territory of which he is resident. Should his claim be deemed worthy of consideration, the competent authority to which the claim is made shall endeavour to come to an Agreement with the competent authority of the other territory with a view to avoiding double taxation. ARTICLE 20 ENTRY INTO FORCE 1. The present Agreement shall be ratified and the instruments of ratification shall be exchanged at New Delhi as soon as possible. 2. Upon exchange of the instruments of ratification, the present Agreement shall have effect (a) in India, for any year of assessment, beginning on or after the 1st April, 1964, (b) in Greece, for any fiscal year, beginning on or after the 1st January, 1964. ARTICLE 21 TERMINATION This Agreement shall continue in effect indefinitely but either of the Contracting Parties may on or before the 30th day of June in any calendar year after 1965 give to the other Contracting Party notice of termination, and in such event this Agreement shall cease to be effective (a) in India, for any year of assessment beginning on or after the 1st April in the calendar year next following such writt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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