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TMI BlogAmendment in the convention between the Republic of India and the Republic of Finland for the Avoidance of Double Taxation with respect to Taxes on Income and on CapitalX X X X Extracts X X X X X X X X Extracts X X X X ..... equirements, as required by Paragraph 1 of Article 29 of the said Convention; And whereas the Central government, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), and section 44A of the Wealth Tax Act, 1957 (27 of 1957), directed, by Notification of the Government of India in the Ministry of Finance (Department of Revenue) (Foreign Tax Division) number G.S.R. 786(E) dated the 20th November 1984 , that all the provisions of the Convention annexed to the said Notification shall be given effect to in the Union of India; And whereas the Government of Republic of Finland and the Government of Republic of India desired to amend the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the following : 1. The taxes which are the subject of the present Convention are: (a) in Finland: (i) the state income taxes; (ii) the corporate income-tax; (iii) the communal tax; (iv) the church tax; (v) the tax withheld at source from interest; (vi) the tax withheld at source from non-residents' income; and (vii) the state capital tax; (hereinafter referred to as Finnish tax'') (b) In India : (i) the income-tax including any surcharge thereon; and (ii) the wealth-tax; (hereinafter referred to as Indian tax''). ARTICLE II Sub-paragraph (f) of paragraph I of Article 3 of the Convention shall be deleted and replaced by the following, and the following new sub-paragraphs (g) and (h) shall be inserted after sub-paragraph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Finland, the following provisions of this paragraph shall apply in Finland instead of the provisions of paragraph 1. Dividends paid by a company which is a resident of Finland to a resident of India shall be exempt from Finnish tax on dividends. 3. The provisions of paragraphs 1 and 2 shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. ARTICLE IV Paragraph 1, 2, 3 and 4 of Article 12 of the Convention shall be deleted and replaced by the following, and the existing paragraphs 5 and 6 shall be renumbered as paragraphs 6 and 7, respectively: 1. Interest arising in a Contracting State and paid to a resident of the other Contracting Slate may be taxed in that other State. 2. However, su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of this Article. 5. The provisions of paragraphs 1 and 2 shall not apply if the recipient 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. ARTICLE V Paragraphs 2, 3 and 4 of Article 13 of the Convention shall be deleted and replaced by the following and the existing par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n with radio or television broadcasting any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience; and (b) payments of any kind received as a consideration for the use of, or the right to use, any industrial, commercial or scientific equipment, other than income derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic. 4. For the purposes of paragraph 2, and subject to paragraph 5, the term fees for technical services means payments of any kind to any person in consideration for the rendering of any technical or consultancy services (including the provision of services of technical or other pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sident of Finland and which controls directly at least 10 per cent of the voting power in the company paying the dividends shall be exempt from Finnish tax. 2. Sub-paragraph (a) of paragraph 2 of the Article shall be deleted and replaced by the following: (a) sections 10(4), 10(4A), 10(5B), 10(15)(iv) and 80-1A of the Income-tax Act, 1961 so far as they are in force or as modified only in minor respects so as not to affect their general character; or ARTICLE VII 1. The Contracting Parties shall notify each other that the constitutional requirements for the entry into force of this Protocol have been complied with. 2. The Protocol shall enter into force thirty days after the date of the later of the notifications referred to in paragraph 1 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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