Uk Dtaa

12/5/2016 IncomeTaxDepartment
UK
AgreementforavoidanceofdoubletaxationandpreventionoffiscalevasionwithUnitedKingdomofGreatBritain
andNorthernIreland
Whereas the annexed Convention between the Government of the Republic of India and the Government of the United
KingdomofGreatBritainandNorthernIrelandfortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwith
respect to taxes on income and capital gains has entered into force on 26th October, 1993 on the notification by both the
ContractingStatestoeachotherofthecompletionoftheproceduresrequiredbytheirrespectivelaws,asrequiredbyArticle
30ofthesaidConvention
Now, therefore, in exercise of the powers conferred by section 90 of the Incometax Act, 1961 (43 of 1961), the Central
GovernmentherebydirectsthatalltheprovisionsofthesaidConventionshallbegiveneffecttointheUnionofIndia.
Notification:No.GSR91(E),dated1121994*.
ANNEXURE
CONVENTIONBETWEENTHEGOVERNMENTOFTHEREPUBLICOFINDIAANDTHEGOVERNMENTOF
THEUNITEDKINGDOMOFGREATBRITAINANDNORTHERNIRELANDFORTHEAVOIDANCEOF
DOUBLETAXATIONANDTHEPREVENTIONOFFISCALEVASIONWITHRESPECTTOTAXESONINCOME
ANDCAPITALGAINS
TheGovernmentoftheRepublicofIndiaandtheGovernmentoftheUnitedKingdomofGreatBritainandNorthernIreland
DesiringtoconcludeanewConventionfortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwithrespect
totaxesonincomeandcapitalgains
Haveagreedasfollows:
*ForearlierLimitedAgreementseeGSR38(E.D.),dated3061956.
SeealsoInstructionNo.3/2004,dated1932004.
ARTICLE1
SCOPEOFTHECONVENTION
1.ThisConventionshallapplytopersonswhoareresidentsofoneorbothoftheContractingStates.
2. This Convention extends to the territory of each Contracting State, including its territorial sea, and to those areas of the
exclusiveeconomiczoneorthecontinentalshelfadjacenttotheouterlimitoftheterritorialseaofeachStateoverwhichithas,
inaccordancewithinternationallaw,sovereignrightsforthepurposeofexplorationandexploitationofthenaturalresources
ofsuchareas,andreferencesinthisConventiontotheContractingStateortoeitherofthemshallbeconstruedaccordingly.
ARTICLE2
TAXESCOVERED
1.ThetaxeswhicharethesubjectofthisConventionare:
(a) intheUnitedKingdom:
(i) theincometax
(ii) thecorporationtax
(iii) thecapitalgainstaxand
(iv) thepetroleumrevenuetax
(hereinafterreferredtoas"UnitedKingdomtax")
(b) inIndia
theincometaxincludinganysurchargethereon
(hereinafterreferredtoas"Indiantax").
2. This Convention shall also apply to any identical or substantially similar taxes which are imposed by eitherContracting
StateafterthedateofsignatureofthisConventioninadditionto,orinplaceof,thetaxesofthatContractingStatereferredto
inparagraph1ofthisArticle.ThecompetentauthoritiesoftheContractingStatesshallnotifyeachotherofanysubstantial
changeswhicharemadeintheirrespectivetaxationlaws.
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ARTICLE3
GENERALDEFINITIONS
1.InthisConvention,unlessthecontextotherwiserequires:
(a) theterm"UnitedKingdom"meansGreatBritainandNorthernIreland
(b) theterm"India"meanstheRepublicofIndia
(c) theterm"tax"meansUnitedKingdomtaxorIndiantax,asthecontextrequiresbutshallnotincludeany
amount which is payable in respect of any default or omission in relation to the taxes to which this
Conventionappliesorwhichrepresentsapenaltyimposedrelatingtothosetaxes
(d) the term "fiscal year" in relation to Indian tax means "previous year" as defined in theIncometaxAct,
1961(43of1961)andinrelationtoUnitedKingdomtaxmeansayearbeginningwith6thAprilinone
yearandendingwith5thAprilinthefollowingyear
(e) theterms"aContractingState"and"theotherContractingState"meanIndiaortheUnitedKingdom,as
thecontextrequires
1[(f) the term "person" includes an individual, a company, a body of persons and any other entity which is
treatedasataxableunitunderthetaxationlawsinforceintherespectiveContractingStates]
(g) the term "company" means any body corporate or any entity which is treated as a company or body
corporatefortaxpurposes
(h) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean
respectivelyanenterprisecarriedonbyaresidentofaContractingStateandanenterprisecarriedonbya
residentoftheotherContractingState
(i) theterm"competentauthority"means,inthecaseoftheUnitedKingdom,theCommissionersofInland
Revenue or their authorised representative, and in the case of India, the Central Government in the
MinistryofFinance(DepartmentofRevenue)ortheirauthorisedrepresentative
(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
ContractingState
(k) theterm"Government"meanstheGovernmentofaContractingStateorapoliticalsubdivisionorlocal
authority thereof. In relation to the United Kingdom, the term "political subdivision" shall include
NorthernIreland.
2.2[***]
3.AsregardstheapplicationofthisConventionbyaContractingStateanytermnototherwisedefinedshall,unlessthecontext
otherwiserequires,havethemeaningwhichithasunderthelawsofthatContractingStaterelatingtothetaxeswhicharethe
subjectofthisConvention.
1.SubstitutedbyNotificationNo.10/2014[F.No.505/3/1986FTDI],dated1022014,w.r.e.f.27122013.Priorto
itssubstitution,subparagraph(f)readasunder:
'(f) theterm"person"includesanindividual,acompanyandanyotherentitywhichistreatedasataxableunit
underthetaxationlawsinforceintherespectiveContractingStates,but,subjecttoparagraph2ofthis
Article,doesnotincludeapartnership'
2.Paragraph2omittedbyNotificationNo.10/2014[F.No.505/3/1986FTDI],dated1022014,w.r.e.f.27122013.
Priortoitsomission,saidparagraphreadasunder:
"2.ApartnershipwhichistreatedasataxableunitundertheIncometaxAct,1961(43of1961)ofIndiashallbetreatedas
apersonforthepurposesofthisConvention."
ARTICLE4
FISCALDOMICILE
3[1.ForthepurposesofthisConvention,theterm"residentofaContractingState"meansanypersonwho,underthelawsof
thatState,isliabletotaxthereinbyreasonofhisdomicile,residence,placeofmanagement,placeofincorporation,orany
othercriterionofasimilarnature,provided,however,that:
(a) thistermdoes not include any person who is liable to tax in that State in respect only of income from
sourcesinthatStateand
(b) inthecaseofincomederivedorpaidbyapartnership,estate,ortrust,thistermappliesonlytotheextent
thattheincomederivedbysuchpartnership,estate,ortrustissubjecttotaxinthatStateastheincomeof
aresident,eitherinitshandsorinthehandsofitspartnersorbeneficiaries.]
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2.Wherebyreasonoftheprovisionsofparagraph1ofthisArticleanindividualisaresidentofbothContractingStates,then
hisstatusshallbedeterminedinaccordancewiththefollowingrules:
(a) heshallbedeemedtobearesidentoftheContractingStateinwhichhehasapermanenthomeavailable
tohim.IfhehasapermanenthomeavailabletohiminbothContractingStates,heshallbedeemedtobea
residentoftheContractingStatewithwhichhispersonalandeconomicrelationsarecloser(centreofvital
interests)
(b) iftheContractingStateinwhichhehashiscentreofvitalinterestscannotbedetermined,orifhehasnot
apermanenthomeavailabletohimineitherContractingState,heshallbedeemedtobearesidentofthe
ContractingStateinwhichhehasanhabitualabode
(c) ifhehasanhabitual abode in both Contracting States or in either of them, he shall be deemed to be a
residentoftheContractingStateofwhichheisanational
(d) if he is a national of both Contracting States or of neither of them, the competent authorities of the
ContractingStatesshallsettlethequestionbymutualagreement.
3. Where by reason of the provisions of paragraph 1 of this Article a person other than an individual is a resident of both
ContractingStates,thenitshallbedeemedtobearesidentoftheContractingStateinwhichitsplaceofeffectivemanagement
issituated.
3. Substituted byNotification No. 10/2014 [F.No.505/3/1986FTDI], dated 1022014,w.r.e.f.27122013. Prior to

itssubstitution,paragraph1readasunder:
'1.ForthepurposesofthisConvention,theterm"residentofaContractingState"meansanypersonwho,underthelawof
thatState,isliabletotaxationthereinbyreasonofhisdomicile,residence,placeofmanagementoranyothercriterionofa
similarnature.'
ARTICLE5
PERMANENTESTABLISHMENT
1.ForthepurposesofthisConvention,theterm"permanentestablishment"meansafixedplaceofbusinessthroughwhichthe
businessofanenterpriseiswhollyorpartlycarriedon.
2.Theterm"permanentestablishment"shallincludeespecially:
(a) aplaceofmanagement
(b) abranch
(c) anoffice
(d) afactory
(e) aworkshop
(f) premisesusedasasalesoutletorforreceivingorsolicitingorders
(g) a warehouse in relation to a person providing store facilities for
others
(h) a mine, an oil or gas well, quarry on other place of extraction of
naturalresources
(i) aninstallationorstructureusedfortheexplorationorexploitationof
naturalresources
(j) a building site or construction, installation or assembly project or
supervisory activities in connection therewith, where such site,
projectorsupervisoryactivitycontinuesforaperiodofmorethansix
months, or where such project or supervisory activity, being
incidental to the sale or machinery or equipment, continues for a
period not exceeding six months and the charges payable for the
projectorsupervisoryactivityexceed10percentofthesalepriceof
themachineryandequipment
(k) thefurnishingof services including managerial services, other than
those taxable under Article 13 (Royalties and fees for technical
services), within a Contracting State by an enterprise through
employeesorotherpersonnel,butonlyif:
(i) activitiesofthatnaturecontinuewithinthatStateforaperiodorperiodsaggregatingmorethan90dayswithinany
twelvemonthperiodor
(ii) servicesareperformedwithinthatStateforanenterprisewithinthemeaningofparagraph1ofArticle10(Associated
enterprises)andcontinueforaperiodorperiodsaggregatingmorethan30dayswithinanytwelvemonthperiod:
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Providedthatforthepurposesofthisparagraphanenterpriseshallbedeemedtohaveapermanentestablishmentina
ContractingStateandtocarryonbusinessthroughthatpermanentestablishmentifitprovidesservicesorfacilitiesin
connectionwith,orsuppliesplantandmachineryonhireusedortobeusedin,theprospectingfor,orextractionor
productionof,mineraloilsinthatState.
3.Theterm"permanentestablishment"shallnotbedeemedtoinclude:
(a) theuseoffacilitiessolelyforthepurposeofstorageordisplayofgoodsormerchandisebelongingtothe
enterprise
(b) themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
storageordisplay
(c) themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
processingbyanotherenterprise
(d) themaintenanceofafixedplaceofbusinesssolelyforthepurposeofpurchasinggoodsormerchandise,or
forcollectinginformation,fortheenterprise
(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of
informationorforscientificresearch,beingactivitiessolelyofapreparatoryorauxiliarycharacterinthe
trade of business of the enterprise. However, this provision shall not be applicable where the enterprise
maintains any other fixed place of business in the other Contracting State for any purpose or purposes
otherthanthepurposesspecifiedinthisparagraph
(f) themaintenanceofafixedplaceofbusinessessolelyforanycombinationofactivitiesmentionedinsub
paragraphs (a) to (e) of the paragraph, provided that the overall activity of the fixed place of business
resultingfromthiscombinationisofapreparatoryorauxiliarycharacter.
4.ApersonactinginaContractingStatefororonbehalfofanenterpriseoftheothercontractingStateotherthananagentof
anindependentstatustowhomparagraph(5)ofthisArticleapplies,shallbedeemedtobeapermanentestablishmentofthat
enterpriseinthefirstmentionedStateif:
(a) hehas,andhabituallyexercisesinthatState,anauthoritytonegotiateandenterintocontractsfororon
behalfoftheenterprise,unlesshisactivitiesarelimitedtothepurchaseofgoodsormerchandiseforthe
enterpriseor
(b) he habitually maintains in the firstmentioned Contracting State a stock of goods or merchandise from
whichheregularlydeliversgoodsormerchandisefororonbehalfoftheenterpriseor
(c) hehabituallysecuresordersinthefirstmentionedState,whollyoralmostwhollyfortheenterpriseitself
orfortheenterpriseandtheenterprisescontrolling,controlledby,orsubjecttothesamecommoncontrol,
asthatenterprise.
5.AnenterpriseofaContractingStateshallnotbedeemedtohaveapermanentestablishmentintheotherContractingState
merelybecauseitcarriesonbusinessinthatotherStatethroughabroker,generalcommissionagentoranyotheragentofan
independentstatus,wheresuchpersonsareactingintheordinarycourseoftheirbusiness.However,iftheactivitiesofsuchan
agentarecarriedoutwhollyoralmostwhollyfortheenterprise(orfortheenterpriseandotherenterpriseswhicharecontrolled
byitorhaveacontrollinginterestinitoraresubjecttosamecommoncontrol)heshallnotbeconsideredtobeanagentofan
independentstatusforthepurposesofthisparagraph.
6.ThefactthatacompanywhichisaresidentofaContractingStatecontrolsoriscontrolledbyacompanywhichisaresident
oftheotherContractingState,orwhichcarriesonbusinessinthatotherState(whetherthroughapermanentestablishmentor
otherwise),shallnotofitselfconstituteeithercompanyapermanentestablishmentoftheother.
7.ForthepurposesofthisArticletheterm"control",inrelationtoacompany,meanstheabilitytoexercisecontroloverthe
company'saffairsbymeansofthedirectorindirectholdingofthegreaterpartoftheissuedsharecapitalorvotingpowerin
thecompany.
ARTICLE6
INCOMEFROMIMMOVABLEPROPERTY
1.IncomefromimmovablepropertymaybetaxedintheContractingStateinwhichsuchpropertyissituated.
2.(a) The term "immovable property" shall, subject to the provisions of subparagraph (b) of this paragraph, be defined in
accordancewiththelawoftheContractingStateinwhichthepropertyinquestionissituated.
(b) The term "immovable property" shall in any case include property accessory in immovable property, livestock and
equipment used in agriculture and forestry, rights, to which the provisions ofgeneral law respecting landed property apply,
usufruct of immovable property and rights to variable orfixed payment as consideration for the working of, or the right to
work,mineraldeposits,sourcesandothernaturalresources.Shipsandaircraftshallnotberegardedasimmovableproperty.
3.Theprovisionsofparagraph1ofthisArticleshallapplytoincomederivedfromthedirectuse,letting,oruseinanyother
formofimmovableproperty.
4.Theprovisionsofparagraphs1and3ofthisArticleshallalsoapplytotheincomefromimmovablepropertyofaenterprise
andtoincomefromimmovablepropertyusedfortheperformanceofindependentpersonalservices.
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ARTICLE7
BUSINESSPROFITS
1.TheprofitsofanenterpriseofaContractingStateshallbetaxableonlyinthatStateunlesstheenterprisecarriesonbusiness
in the other Contracting State through a permanent, establishment situated therein. If the enterprise carries on business as
aforesaid,theprofitsoftheenterpricemaybetaxedintheotherStatebutonlysomuchofthemasisdirectlyorindirectly
attributabletothatpermanentestablishment.
2. Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent
establishmentsituatedtherein,theprofitswhichthatpermanentestablishmentmightbeexpectedtomakeifitwereadistinct
and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly
independentlywiththeenterpriseofwhichitisapermanentestablishmentshallbetreatedforthepurposesofparagraph1of
thisArticleasbeingtheprofitsdirectlyattributabletothatpermanentestablishment.
3.Whereapermanentestablishmenttakesanactivepartinnegotiating,concludingorfulfillingcontractsenteredintobythe
enterprise,then,notwithstandingthatotherpartsoftheenterprisehavealsoparticipatedinthosetransactions,thatproportion
of profits of the enterprise arising out of those contracts which the contribution of the permanent establishment to those
transactionsbearstothatoftheenterpriseasawholeshallbetreatedforthepurposeofparagraph1ofthisArticleasbeingthe
profitsindirectlyattributabletothatpermanentestablishment.
4.Insofarasithasbeencustomaryin a Contracting State according to its law to determine the profits tobeattributedtoa
permanentestablishmentonthebasisofanapportionmentofthetotalprofitsoftheenterprisetoitsvariousparts,nothingin
paragraphs 1and 2 of this Article shall preclude that Contracting State from determining the profits to be taxed by such an
apportionmentasmaybenecessarythemethodofapportionmentadoptedshall,however,besuchthattheresultshallbein
accordancewiththeprincipleslaiddowninthisArticle.
5.Subjecttoparagraphs6and7ofthisArticle,inthedeterminationoftheprofitsofapermanentestablishment,thereshallbe
allowedasdeductionexpenseswhichareincurredforthepurposesofthebusinessofthepermanentestablishment,including
executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is
situated or elsewhere, which are allowed under the provisions of and subject to the limitations of the domestic law of the
ContractingStateinwhichthepermanentestablishmentissituated.
6.WherethelawoftheContractingStateinwhichthepermanentestablishmentissituatedimposesarestrictionontheamount
oftheexecutiveandgeneraladministrativeexpenseswhichmaybeallowed,andtherestrictionitrelaxedoroverriddenbyany
ConventionbetweenthatContractingStateandathirdStatewhichisamemberoftheOrganisationforEconomicCooperation
and Development or a State in a comparable stage of development, and that Convention enters into force, after the date of
entryintoforceofthisConvention,thecompetentauthorityofthatContractingStateshallnotifythecompetentauthorityof
theotherContractingStateofthetermsoftherelevantparagraphintheConventionwiththatthirdstateimmediatelyafterthe
entryintoforceofthatConventionand,ifthecompetentauthorityoftheotherContractingStatesorequests,theprovisionsof
thisConventionshallbeamendedbyprotocoltoreflectsuchterms.
7. Paragraph 5 of this Article shall not apply to amounts, if any, paid (otherwise than towards reimbursement of actual
expenses)bythepermanentestablishmenttotheheadofficeoftheenterpriseoranyofitsotheroffices,bywayofroyalties,
feesorothersimilarpaymentsinreturnfortheuseofpatentsorotherrights,tobywayofcommission,forspecificservices
performed or for management, or, except in the case of a banking enterprise, by way of interest on monies lent to the
permanent establishment nor shall account be taken in the determination of the profits of a permanent establishment of
amounts charged (otherwise than towards reimbursement of actual expenses) by the permanent establishment of the head
officeoftheenterpriseoranyofitsotheroffices,bywayofroyalties,feesorothersimilarpaymentsinreturnfortheuseof
patentsorotherrights,oranywayofcommission,forspecificservicesperformedorformanagement,or,exceptinthecaseof
abankingenterprise,bywayofinterestonmonieslenttobeheadofficeoftheenterpriseoranyofitsotheroffices.
8.Noprofitsshallbeattributedtopermanentestablishmentbyreasonofthemerepurchasebythatpermanentestablishmentof
goodsormerchandisefortheenterprise.
9. Where profits include items of income which are dealt with separately in other Articles of this convention, then the
provisionsofthoseArticlesshallnotbeaffectedbytheprovisionsofthisArticle.
ARTICLE8
AIRTRANSPORT
1.ProfitsderivedfromtheoperationofaircraftininternationaltrafficbyanenterpriseofoneoftheContractingStatesshall
notbetaxedintheotherContractingState.
2. The provisions of paragraph 1 of this Article shall likewise apply in respect of participation in pools of any kind by
enterprisesengagedinairtransport.
3. For the purposes of this Article the term "operation of aircraft" shall include transportation by air of persons livestock,
goodsormail,carriedonbytheownersorlesseesorcharterersofaircraft,includingthesaleofticketsforsuchtransportation
onbehalfofotherenterprises,theincidentalleaseofaircraftonacharacterbasisandanyotheractivitydirectlyconnectedwith
suchtransportation.
4.GainsderivedbyanenterpriseofaContractingStatefromthealienationofaircraftownedandoperatedbytheenterprise,
theincomefromwhichistaxableonlyinthatState,shallbetaxedonlyinthatState.
ARTICLE9
SHIPPING
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1.IncomeofanenterpriseofaContractingStatefromtheoperationofshipsininternationaltrafficshallbetaxableonlyinthat
State.
2.Theprovisionsofparagraph1ofthisArticleshallnotapplytoincomefromjourneysbetweenplaceswhicharesituatedina
ContractingState.
3.ForthepurposesofthisArticle,incomefromtheoperationofshipsincludesincomederivedfromtherentalonabareboat
basisofshipsifsuchrentalincomeisincidentaltotheincomedescribedinparagraph1ofthisArticle.
4.NotwithstandingtheprovisionsofArticle7(businessprofits)ofthisConvention,theprovisionsofparagraphs1and2of
this Article shall likewise apply to income of an enterprise of a Contracting State from the use, maintenance or rental of
containers (including trailers and related equipment for the transport of containers) used for the transport of goods or
merchandise.
5. The provisions of this Article shall apply also to income derived from participation in a pool, a joint business or an
internationaloperatingagency.
6.GainsderivedbyanenterpriseofacontractingStatefromthealienationofshipsorcontainersownedandoperatedbythe
enterpriseshallbetaxedonlyinthatStateifeithertheincomefromtheoperationofthealienatedshipsorcontainerswastaxed
onlyinthatState,ortheshipsorcontainersaresituatedoutsidetheotherContractingStateatthetimeofthealienation.
ARTICLE10
ASSOCIATEDENTERPRISES
Where
1. (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an
enterpriseoftheotherContractingState,or
(b)thesamepersonsparticipatedirectlyorindirectlyinthemanagement,controlorcapitalofanenterpriseofaContracting
StateandanenterpriseoftheotherContractingState,
andineithercaseconditionsaremadeorimposedbetweenthetwoenterprisesintheircommercialorfinancialrelationswhich
differs from those which would be made between independent enterprises, then any profits which would, but for those
conditions,haveaccruedtooneoftheenterprises,but,byreasonofthoseconditions,havenotsoaccrued,maybeincludedin
theprofitsofthatenterpriseandtaxedaccordingly.
2.WhereaContractingStateincludesintheprofitsofanenterpriseofthatStateandtaxesaccordinglyprofitsonwhichan
enterpriseoftheotherContractingStatehasbeenchargedtotaxinthatotherStateandtheprofitssoincludedareprofitswhich
wouldhaveaccruedtotheenterpriseofthefirstmentionedStateiftheconditionsmadebetweenthetwoenterpriseshadbeen
those which would have been made between independent enterprises, then that other State shall make an appropriate
adjustmenttotheamountofthetaxchargedthereinonthoseprofits.Indeterminingsuchadjustment,dueregardshallbehad
totheotherprovisionsofthisConventionandthecompetentauthoritiesoftheContractingStatesshall,ifnecessary,consult
eachother.
4[ARTICLE11
DIVIDENDS
1.DividendspaidbyacompanywhichisaresidentofaContractingStatetoaresidentoftheotherContractingStatemaybe
taxedinthatotherState.
2.However,suchdividendsmayalsobetaxedintheContractingStateofwhichthecompanypayingthedividendsisaresident
andaccordingtothelawsofthatState,butifthebeneficialownerofthedividendsisaresidentoftheotherContractingState,
thetaxsochargedshallnotexceed:
(a) 15percentofthegrossamountofthedividendswherethosedividendsarepaidoutofincome(including
gains) derived directly or indirectly from immovable property within the meaning of Article 6 by an
investment vehicle which distributes most of this income annually and whose income from such
immovablepropertyisexemptedfromtax
(b) 10percentofthegrossamountofthedividends,inallothercases.
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these
limitations.Theprovisionsofthisparagraphshallnotaffectthetaxationofthecompanyinrespectoftheprofitsoutofwhich
thedividendsarepaid.
3.Theterm"dividends"asusedinthisArticlemeansincomefromshares,orotherrights,notbeingdebtclaims,participating
inprofits,aswellasanyotheritemwhichissubjectedtothesametaxationtreatmentasincomefromsharesbythelawsofthe
Stateofwhichthecompanymakingthedistributionisaresident.
4.Theprovisionsofparagraphs1and2ofthisArticleshallnotapplyifthebeneficialownerofthedividends,beingaresident
of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a
resident,throughapermanentestablishmentsituatedtherein, or performs in that other State independent personal services
fromafixedbasesituatedtherein,andtheholdinginrespectofwhichthedividendsarepaidiseffectivelyconnectedwithsuch
permanent establishment. In such case the provisions of Article 7 (Business profits) or Article 15 (Independent personal
services),asmaybethecase,shallapply.
5.WhereacompanywhichisaresidentofaContractingStatederivesprofitsorincomefromtheotherContractingState,that
other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a
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residentofthatotherStateorinsofarastheholdinginrespectofwhichthedividendsarepaidiseffectivelyconnectedwitha
permanentestablishmentsituatedinthatotherState,norsubjectthecompany'sundistributedprofitstoataxonundistributed
profits,evenifthedividendspaidortheundistributedprofitsconsistwhollyorpartlyofprofitsorincomearisinginthatother
State.
6. No relief shall be available under this Article if it was the main purpose or one of the main purposes of any person
concerned with the creation or assignment of the shares or other rights in respect of which the dividend is paid to take
advantageofthisArticlebymeansofthatcreationorassignment.]
4.Article11substitutedbyNotificationNo.10/2014[F.No.505/3/1986FTDI],dated1022014,w.r.e.f.27122013.
Priortoitssubstitution,article11readasunder:
'ARTICLE11
DIVIDENDS
1.(a)Adividendpaidbyacompany which is a resident of the United Kingdom to a resident of Indiamaybetaxedin
India.
(b)Whereunderparagraph2ofthisArticle,aresidentofIndiaisentitledtoataxcreditinrespectofthatdividend,taxmay
also,bechargedintheUnitedKingdomandaccordingtothelawsoftheUnitedKingdomontheaggregateoftheamount
orvalueofthedividendandtheamountofthetaxcredit,ataratenotexceeding15percent.
(c)Exceptasprovidedinsubparagraph(b)ofthisparagraph,adividendderivedfromacompanywhichisaresidentofthe
UnitedKingdombyaresidentofIndia,whoisthebeneficialownerofthatdividend,shallbeexemptfromanytaxinthe
UnitedKingdomwhichischargeableondividends.
2.AnindividualwhoisaresidentofIndiaandwhoreceivesadividendfromacompanywhichisaresidentoftheUnited
Kingdomshall,providedheisthebeneficialownerofthedividend,beentitledtothetaxcreditinrespectofthatdividend
whichanindividualresidentintheUnitedKingdomwouldhavebeenentitledtohadhereceivedthatdividend,andtothe
paymentofanyexcessofthattaxcreditoverhisliabilitytoUnitedKingdomtax.
3.AdividendpaidbyacompanywhichisaresidentofIndiatoaresidentoftheUnitedKingdommaybetaxedinthe
UnitedKingdom.ThedividendmayalsobetaxedinIndiabuttheIndiantaxsochargedshallnotexceed15percentofthe
grossamountofthedividend.
4. The preceding paragraphs of this Article shall not affect the taxation of the company in respect of the profits out of
whichthedividendispaid.
5.Theprovisionofparagraphs1and2or,asthecasemaybe,paragraph3oftheArticleshallnotapplyifthebeneficial
ownerofthedividend,beingaresidentofaContractingState,has,intheotherContractingStateofwhichthecompany
payingthedividendisaresident,apermanentestablishmentorfixedbasewithwhichtheholdingbyvirtueofwhichthe
dividend is paid is effectively connected. In such a case the provisions of Article 7 (Business profits) or Article 15
(Independentpersonalservices)ofthisConvention,asthecasemaybe,shallapply.
6.WhereacompanywhichisaresidentofaContractingStatederivesprofitsorincomefromtheotherContractingState,
thatotherStatemaynotimposeanytaxonthedividendspaidbythecompany,exceptinsofarassuchdividendsarepaidto
aresidentofthatotherStateorinsofarastheholdinginrespectofwhichthedividendsarepaidiseffectivelyconnected
withapermanentestablishmentorafixedbasesituatedinthatotherState,norsubjectthecompany'sundistributedprofits
toataxonthecompany'sundistributedprofits,evenifthedividendspaidortheundistributedprofitsconsistswhollyor
partlyofprofitsorincomearisinginthatotherState.
7. As used in this Article the term "dividend" means income from shares or other rights, not being debitclaims,
participatinginprofits,aswellasincomefromothercorporaterightstreatedinthesamemannerasincomefromsharesby
thetaxationlawoftheStateofwhichthecompanymakingthedistributionisaresidentandanyotheritemtreatedasa
dividendordistributionunderthatlaw.'
ARTICLE12
INTEREST
1.InterestarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemaybetaxedinthatotherState.
2.However,suchinterestmayalsobetaxedintheContractingStateinwhichitarisesandaccordinglytothelawofthatState,
providedthatwheretheresidentoftheotherContractingStateisthebeneficialowneroftheinterestthetaxsochargedshall
notexceed15percentofthegrossamountoftheinterest.
3.Notwithstandingtheprovisionsofparagraph2ofthisArticle:
(a) wheretheinterestispaidtoabankcarryingonabonafidebanking business which isaresidentofthe
otherContractingStateandisthebeneficialowneroftheinterest,thetaxchargedintheContractingState
inwhichtheinterestarisesshallnotexceed10percentofthegrossamountoftheinterest
(b) wheretheinterestispaidtotheGovernmentofoneoftheContractingStatesorapoliticalsubdivisionor
local authority of that State or the Reserve Bank of India, it shall not be subject to tax by the State in
whichitarises.
4.NotwithstandingtheprovisionsofArticle7ofthisConventionandofparagraphs2and3ofthisArticle:
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(a) interestarisinginIndiawhichispaidtoanybeneficiallyownedbyaresidentoftheUnitedKingdomshall
be exempt from tax in India if it is paid in respect of a loan made, guaranteed or insured, or any other
debtclaimorcreditguaranteedorinsuredbytheUnitedKingdomExportCreditsGuaranteeDepartment
and
(b) interestarisingintheUnitedKingdomwhichispaidtoandbeneficiallyownedbyaresidentofIndiashall
beexemptfromtaxintheUnitedKingdomifitispaidinrespectofaloanmade,guaranteedorinsured,or
anyotherdebtclaimorcreditguaranteedorinsuredbytheExportCreditsandGuaranteeCorporationof
Indiaand/orExportImportBankofIndia.
5. The term "interest" as used in this Article means income from debtclaims of every kind, whether or not secured by
mortgageandwhetherornotcarryingarighttoparticipateinthedebtor'sprofits,andinparticular,incomefromGovernment
securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or
debentures but, subject to the provisions of paragraph 9 of this Article, shall not include any item which is treated as a
distributionundertheprovisionsofArticle11(Dividends)ofthisConvention.
6.Theprovisionsofparagraphs 1, 2 and 3(a) of this Article 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 debtclaim in respect of which the interest is paid is effectively connected with such permanent
establishment or fixed base. Insuch case the provisions of Article 7 (Business profits) or Article 15 (Independent personal
services)ofthisConvention,asthecasemaybeshallapply.
7.InterestshallbedeemedtoariseinaContractingStatewhenthepayeristhatStateitself,apoliticalsubdivision,alocal
authorityoraresidentofthatState.Where,however,thepersonpayingtheinterest,whetherheisaresidentofaContracting
Stateornot,hasinaContractingStateapermanentestablishmentorafixedbaseinconnectionwithwhichtheindebtedness
onwhichtheinterestispaidwasincurred,andsuchinterestisbornebythatpermanentestablishmentorfixedbase,thensuch
interestshallbedeemedtoariseintheContractingStateinwhichthepermanentestablishmentorfixedbaseissituated.
8.Where,owingtoaspecialrelationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsomeother
person,theamountoftheinterestpaidexceedsforwhateverreasontheamountwhichwouldhavebeenpaidintheabsenceof
suchrelationship,theprovisionsofthisArticleshallapplyonlytothelastmentionedamount.Inthatcase,theexcesspartof
thepaymentsshallremaintaxableaccordingtothelawofeachContractingState,dueregardbeinghadtotheotherprovisions
ofthisConvention.
9.AnyprovisioninthelawsofeitherContractingStaterelatingonlytointerestpaidanonresidentcompanyshallnotoperate
soastorequiresuchinterestpaidtoacompanywhichisaresidentoftheotherContractingStatetobetreatedasadistribution
ordividendbythecompanypayingsuchinterestortobeleftoutofaccountasadeductionincomputingthetaxableprofitsof
thecompanypayingtheinterest.Theprecedingsentenceshallnotapplytointerestpaidtoacompanywhichisaresidentof
one of the Contracting State in which more than 50 per cent of the voting power is controlled, directly or indirectly, by a
personorpersonswhoareresidentsoftheotherContractingState.
10.Therelieffromtaxprovidedforinparagraph2ofthisArticleshallnotapplyifthebeneficialowneroftheinterest:
(a) isexemptfromtaxonsuchincomeintheContractingStateofwhichheisaresidentand
(b) sellsormakesacontracttoselltheholdingfromwhichsuchinterestisderivedwithinthreemonthsofthe
datesuchbeneficialowneracquiredsuchholding.
11. The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person
concernedwiththecreationorassignmentofthedebtclaiminrespectofwhichtheinterestispaidtotakeadvantageofthis
Articlebymeansofthatcreationorassignment.
ARTICLE13
ROYALTIESANDFEESFORTECHNICALSERVICES
1.RoyaltiesandfeesfortechnicalservicesarisinginaContractingStateandpaidtoaresidentoftheotherContractingState
maybetaxedinthatotherState.
2.However,suchroyaltiesandfeesfortechnicalservicesmayalsobetaxedintheContractingStateinwhichtheyariseand
accordingtothelawofthatStatebutifthebeneficialowneroftheroyaltiesorfeesfortechnicalservicesisaresidentofthe
otherContractingState,thetaxsochargedshallnotexceed:
(a) in the case of royalties within paragraph 3(a) of this Articles, and fees for technical
serviceswithinparagraphs4(a)and(c)ofthisArticle,
(i) during the first five years for
which this Convention has
effect
(aa) 15percentofthegrossamountofsuchroyaltiesorfeesfortechnicalserviceswhen
thepayeroftheroyaltiesorfeesfortechnicalservicesistheGovernmentofthefirst
mentionedContractingStateorapoliticalsubdivisionofthatState,and
(bb) 20percentofthegrossamountofsuchroyaltiesorfeesfortechnicalservicesinall
othercasesand
(ii) duringsubsequentyears,15percentofthegrossamountofsuchroyaltiesorfeesfortechnicalservicesand
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(b) inthecaseofroyaltieswithinparagraph3(b)ofthisArticle and fees

fortechnicalservicesdefinedinparagraph4(b)ofthisArticle,10per
cent of the gross amount of such royalties and fees for technical
services.
3.ForthepurposesofthisArticle,theterm"royalties"means:
(a) paymentsofany kind received as a consideration for the use of, or the right to use, any copyright of a
literary,artisticorscientificwork,includingcinematographyfilmsorworkonfilms,tapeorothermeans
ofreproductionforuseinconnectionwithradioortelevisionbroadcasting,anypatent,trademark,design
or model, plan, secret formula or process, or for information concerning industrial, commercial or
scientificexperienceand
(b) payments of any kind received as 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
fromtheoperationofshipsoraircraftininternationaltraffic.
4. For the purposes of paragraph 2 of this Article, and subject to paragraph 5, of this Article, the term "fees for technical
services"meanspaymentsofanykindofanypersoninconsiderationfortherenderingofanytechnicalorconsultancyservices
(includingtheprovisionofservicesofatechnicalorotherpersonnel)which:
(a) areancillaryandsubsidiarytotheapplicationorenjoymentoftheright,propertyorinformationforwhich
apaymentdescribedinparagraph3(a)ofthisarticleisreceivedor
(b) areancillaryandsubsidiarytotheenjoymentofthepropertyforwhichapaymentdescribedinparagraph
3(b)ofthisArticleisreceivedor
(c) make available technical knowledge, experience, skill knowhow or processes, or consist of the
developmentandtransferofatechnicalplanortechnicaldesign.
5.Thedefinitionoffeesfortechnicalservicesinparagraph4ofthisArticleshallnotincludeamountspaid:
(a) forservicesthatareancillaryandsubsidiary,aswellasinextricablyandessentiallylinked,tothesaleof
property,otherthanpropertydescribedinparagraph3(a)ofthisArticle
(b) forservicesthatareancillaryandsubsidiarytotherentalofships,aircraft,containersorotherequipment
usedinconnectionwiththeoperationofships,oraircraftininternationaltraffic
(c) forteachinginorbyeducationalinstitutions
(d) forservicesfortheprivateuseoftheindividualorindividualsmakingthepaymentor
(e) to an employee of the person making the payments or to any individual or partnershipforprofessional
servicesasdefinedinArticle15(Independentpersonalservices)ofthisConvention.
6. The provisions of paragraphs 1 and 2 of this Article 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
royaltiesorfeesfortechnicalservicesarisethroughapermanentestablishmentsituatedtherein,orperformsinthatotherState
independentpersonalservicesfrom a fixed base situated therein, and the right, property or contract in respect of which the
royaltiesorfeesfortechnicalservicesarepaidiseffectivelyconnectedwithsuchpermanentestablishmentorfixedbase.In
suchcase,theprovisionsofArticle7(Businessprofits)orArticle15(Independentpersonalservices)ofthisConvention,as
thecasemaybe,shallapply.
7.RoyaltiesandfeesfortechnicalservicesshallbedeemedtoariseinaContractingStatewherethepayeristhatStateitself,a
politicalsubdivision,alocalauthorityoraresidentofthatState.Where,however,thepersonpayingtheroyaltiesorfeesfor
technicalservices,whetherheisaresidentofaContractingStateornot,hasinaContractingStateapermanentestablishment
orafixedbaseinconnectionwithwhichtheobligationtomakepaymentswasincurredandthepaymentsarebornedbythat
permanent establishment or fixed base then the royalties or fees for technical services shall be deemed to arise in the
ContractingStateinwhichthepermanentestablishmentorfixedbaseissituated.
8.Where,owingtoaspecialrelationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsomeother
person,theamountoftheroyaltiesorfeesfortechnicalservicespaidexceedsforwhateverreasontheamountwhichwould
havebeenpaidintheabsenceofsuchrelationship,theprovisionsofthisArticleshallapplyonlytothelastmentionedamount.
Inthatcase,theexcesspartofthepaymentsshallremaintaxableaccordingtothelawofeachContractingState,dueregard
beinghadtotheotherprovisionsofthisConvention.
9. The provisions of this Article shall not apply if it was the main purposes or one of the main purposes of any person
concernedwiththecreationorassignmentoftherightsinrespectofwhichtheroyaltiesorfeesfortechnicalservicesarepaid
totakeadvantageofthisArticlebymeansofthatcreationorassignment.
ARTICLE14
CAPITALGAINS
1.ExceptasprovidedinArticle8(AirTransport)and9(Shipping)ofthisConvention,eachContractingStatemaytaxcapital
gainsinaccordancewiththeprovisionsofitsdomesticlaw.
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ARTICLE15
INDEPENDENTPERSONALSERVICES
1. Income derived by an individual, whether in his own capacity or as a member of a partnership, who is a resident of a
ContractingStateinrespectofprofessionalservicesorotherindependentactivitiesofasimilarcharactermaybetaxedinthat
State.SuchincomemayalsobetaxedintheotherContractingStateifsuchservicesareperformedinthatotherStateandif:
(a) heispresentinthatotherStateforaperiodorperiodsaggregatingto90daysintherelevantfiscalyear
or
(b) he,orthepartnership,hasafixedbaseregularlyavailabletohim,orit,inthatotherStateforthepurpose
ofperforminghisactivities
butineachcaseonlysomuchoftheincomeasisattributabletothoseservices.
2.Forthepurposesofparagraph1ofthisArticleanindividualwhoisamemberofapartnershipshallberegardedasbeing
presentintheotherStateduringdaysonwhich,althoughheisnotpresent,anotherindividualmemberofthepartnershipisso
presentandperformsprofessionalservicesorotherindependentactivitiesofasimilarcharacterinthatState.
3.Theterm"professionalservices"includesindependent,scientific,literary,artistic,educationalorteachingactivitiesaswell
astheindependentactivitiesorphysicians,surgeons,lawyers,engineers,architects,dentistsandaccountants.
ARTICLE16
DEPENDENTPERSONALSERVICES
1. Subject to the provisions of Article 17 (Directors' fees), 18 (Artistes and athletes), 19 (Governmental remuneration and
pensions),20(Pensionsandannuities),21(Studentsandtrainees)and22(Teachers)ofthisConvention,salaries,wagesand
othersimilarremunerationderivedbyaresidentofaContractingStateinrespectofanemploymentshallbetaxableonlyin
that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such
remunerationasisderivedtherefrommaybetaxedinthatotherState.
2.Notwithstandingtheprovisionsofparagraph1ofthisArticle,remunerationderivedbyaresidentofaContractingStatein
respectofanemploymentexercisedintheotherContractingStateshallnotbetaxedinthatotherStateif:
(a) heispresentintheotherStateforaperiodorperiodsnotexceedingintheaggregate183daysduringthe
relevantfiscalyear
(b) theremunerationispaidby,oronbehalfof,anemployerwhoisnotresidentofthatotherStateand
(c) theremunerationisnotdeductibleincomputingtheprofitsofanenterprisechargeabletotaxinthatother
State.
3.NotwithstandingtheprecedingprovisionsofthisArticle,remunerationinrespectofanemploymentexercisedaboardaship
or aircraft in international traffic may be taxed in the Contracting State of which the person deriving the profits from the
operationoftheshiporaircraftisaresident.
ARTICLE17
DIRECTORS'FEES
1.Directors'feesandsimilarpaymentsderivedbyaresidentofaContractingStateinhiscapacityasamemberoftheboardof
directorsofacompanywhichisaresidentoftheotherContractingStatemaybetaxedinthatotherState.
ARTICLE18
ARTISTESANDATHLETES
1.NotwithstandingtheprovisionsofArticles15(Independentpersonalservices)and16(Dependentpersonalservices)ofthis
Convention, income derived by entertainers (such as stage, motion picture, radio or television artistes and musicians) or
athletes,fromtheirpersonalactivitiesassuchmaybetaxedintheContractingStateinwhichtheseactivitiesareexercised.
2.WhereincomearisingfrompersonalactivitiesaresuchexercisedinaContractingStatebyanentertainerorathleteaccrues
nottothatentertainerorathletehimselfbuttoanotherperson,thatincomemay,notwithstandingtheprovisionsofArticles7
(Businessprofits),15(Independentpersonalservices)and16(Dependentpersonalservices)ofthisconventionbetaxedinthat
ContractingState.
3.Theprovisionsofparagraphs1and2ofthisArticleshallnotapplyifthevisittoaContractingStateoftheentertainerorthe
athlete is directly or indirectly supported, wholly or substantially, from the public funds of the other Contracting State,
includingapoliticalsubdivisionorlocalauthorityofthatotherState.
ARTICLE19
GOVERNMENTREMUNERATIONANDPENSIONS
1.Remuneration,otherthanapension,paidbytheGovernmentofaContractingStatetoanyindividualwhoisanationalof
that State in respect of services rendered in the discharge of governmental functions in the other Contracting State shall be
exemptfromtaxinthatotherContractingState.
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2. Any pension paid by the Government of a Contracting State to any individual in respect of services rendered to that
GovernmentshallbetaxableonlyinthatContractingState.
3.TheprovisionsofthisArticleshallnotapplytoremunerationorpensionsinrespectofservicesrenderedinconnectionwith
anytradeorbusiness.
ARTICLE20
PENSIONSANDANNUITIES
1. Any pension, other than a pension referred to in Article 19(2) of this Convention, or annuity paid to a resident of a
ContractingStateshallbetaxableonlyinthatState.
2.Theterm"pension"meansaperiodicpaymentmadeinconsiderationofpastemploymentorbywayofcompensationfor
injuriesreceivedinthecourseofperformanceofemploymentoranypaymentsmadeunderthesocialsecuritylegislationof
eitherContractingState.
3.Theterm"annuity"meansastatedsumpayableperiodicallyatstatedtimesduringlifeorduringaspecifiedorascertainable
periodoftimeunderanobligationtomakethepaymentsinreturnforadequateandfullconsiderationinmoneyormoney's
worth.
ARTICLE21
STUDENTSANDTRAINEES
1.AnindividualwhoisaresidentofaContractingStateorwasaresidentofthatStateimmediatelybeforevisitingtheother
ContractingStateandwhoistemporarilypresentinthatotherStatefortheprimarypurposeof:
(a) studyingataUniversityorotheraccreditedorrecognisededucationalinstitutioninthatotherContracting
Stateor
(b) securingtrainingrequiredtoqualifyhimtopracticeaprofessionoraprofessionalspecialityor
(c) studyingordoingresearchasarecipientofagrant,allowance,orawardfromagovernmental,religious,
charitable,scientific,literaryoreducationalorganisation
shallnotbesubjecttotaxbythatotherContractingStateinrespectof:
(i) giftsfromabroadforthepurposesofhismaintenance,education,study,researchortraining
(ii) thegrant,allowanceorawardand
(iii) income,frompersonal services rendered in that other Contracting State (other than any rendered by an
articledclerkorotherpersonundergoingprofessionaltrainingtothepersonorpartnershiptowhomheis
articledorwhoisprovidingthetraining)notexceedingthesumof750poundssterlingoritsequivalentin
Indiancurrencyduringanyfiscalyear.
2. The exemptions under paragraph 1 of this Article shall only extend for such period of time as may be reasonably or
customarilyrequiredforthepurposeofthevisit,butinnoeventshallanyindividualhavethebenefitofparagraph1ofthis
Articleformorethan5years.
ContractingStateandwhoistemporarilypresentinthatotherStateforaperiodnotexceeding12monthsasanemployeeof,
orundercontractwith,aresidentofthefirstmentionedContractingState,fortheprimarypurposeof:
(a) acquiringtechnical,professionalorbusinessexperiencefromapersonotherthanthatresidentofthefirst
mentionedContractingStateor
(b) studyingataUniversityorotheraccreditedorrecognisedinstitutioninthatotherContractingState
shall not be subject to tax by that other Contracting State on his income from personal services performed in the other
ContractingStateforthatperiodinanamountnotexceeding1,500poundssterlingoritsequivalentinIndiancurrency.
ContractingStateandwhoistemporarilypresentinthatotherStateforaperiodnotexceeding12monthsasaparticipantina
programmesponsoredbytheGovernmentoftheotherContractingState,fortheprimarypurposeoftraining,researchorstudy,
shall not be subject to tax by that other Contracting State in respect of payments made by the Government of the first
mentionedContractingStateforthepurposesofhismaintenance,training,research,orstudy.
ARTICLE22
TEACHERS
1.AnindividualwhovisitsaContractingStateforaperiodnotexceedingtwoyearsforthepurposeofteachingorengagingin
researchataUniversity,collegeorotherrecognisededucationalinstitutioninthatState,andwhowasimmediatelybeforethat
visit a resident of the other Contracting State, shall beexempted from tax by the firstmentioned Contracting State on any
remunerationforsuchteachingorresearchforaperiodnotexceedingtwoyearsfromthedatehefirstvisitsthatStateforsuch
purpose.
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2.ThisArticleshallonlyapplytoincomefromresearchifsuchresearchisundertakenbytheindividualinthepublicinterest
andnotprimarilyforthebenefitofsomeotherprivatepersonofpersons.
ARTICLE23
OTHERINCOME
1.Subjecttotheprovisionsofparagraph2ofthisArticle,itemsofincomebeneficiallyownedbyaresidentofaContracting
State,whereverarising,otherthanincomepaidoutoftrustsortheestatesofdeceasedpersonsinthecourseofadministration,
whicharenotdealtwithtintheforegoingArticlesofthisConvention,shallbetaxableonlyinthatState.
2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in
paragraph2ofArticle 6, if the recipient of such income, being a resident ofaContracting State, carries on business in the
other Contracting State through a permanent establishment situated therein, or performs in that other State independent
personal services from a fixed base situated the therein, and the right or property in respect of which the income is paid is
effectivelyconnectedwithsuchpermanentestablishmentorfixedbase.Insuchcase,theprovisionsofArticle7orArticle15
ofthisConvention,asthecasemaybe,shallapply.
3.Notwithstandingtheprovisionsofparagraphs1and2ofthisArticle,itemsofincomeofaresidentofaContractingState
notdealtwithintheforegoingarticlesofthisConvention,andarisingintheotherContractingStatemaybetaxedinthatother
State.
ARTICLE24
ELIMINATIONOFDOUBLETAXATION
1.SubjecttotheprovisionsofthelawoftheUnitedKingdomregardingtheallowanceasacreditagainstUnitedKingdomtax
oftaxpayableinaterritoryoutsidetheUnitedKingdom(whichshallnotaffectthegeneralprinciplehereof):
(a) Indian tax payable under the laws of India and in accordance with the provisions of this Convention,
whether directly or by deduction, on profits, income or chargeable gains from sources within India
(excluding, in the case of a dividend, tax payable in respect of the profits out of which the dividend is
paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same
profits,incomeorchargeablegainsbyreferencetowhichtheIndiantaxiscomputed.
(b) InthecaseofadividendpaidbyacompanywhichisaresidentofIndiatoacompanywhichisaresident
oftheUnitedKingdomandwhichcontrolsdirectlyorindirectlyatleast10percentofthevotingpowerin
the company paying the dividend, the credit shall take into account in [addition to any Indian tax for
whichcreditmaybeallowedundertheprovisionsofsubparagraph(a)ofthisparagraph]theIndiantax
payablebythecompanyinrespectoftheprofitsoutofwhichsuchdividendispaid.
2.SubjecttotheprovisionsofthelawofIndiaregardingtheallowanceasacreditagainstIndiantaxoftaxpaidinaterritory
outsideIndia(whichshallnotaffectthegeneralprinciplehereof),theamountoftheUnitedKingdomtaxpaid,underthelaws
of the United Kingdom and in accordance with the provisions of this Convention, whether directly or by deduction, by a
residentofIndia,inrespectofincomefromsourceswithintheUnitedKingdomwhichhasbeensubjectedtotaxbothinIndia
andtheUnitedKingdomshallbeallowedasacreditagainsttheIndiantaxpayableinrespectofsuchincomebutinanamount
notexceedingthatproportionofIndiantaxwhichsuchincomebearstotheentireincomechargeabletoIndiantax.
For the purposes of the credit referred to in this paragraph, where the resident of India is a company, by which surtax is
payable,thecredittobeallowedagainstIndiantaxshallbeallowedinthefirstinstanceagainsttheincometaxpayablebythe
companyinIndiaand,astothebalance,ifany,againstthesurtaxpayablebyitinIndia.
3.Subjecttoparagraph5ofthisArticle,forthepurposesofparagraph1ofthisArticletheterm"Indiantaxpayable"shallbe
deemedtoinclude:
(a) anyamountwhichwouldhavebeenpayableasIndiantaxbutforadeductionallowedincomputingthe
taxableincomeoranexemptionorreductionoftaxgrantedforthatyearinquestionundertheprovisions
oftheIncometaxAct,1961(43of1961)referredtoinparagraph4(a)or(b)ofthisArticle
(b) thatproportionofanyamountwhichwouldhavebeenpayableasIndiantaxbyaresidentofIndiabutfor
adeductionallowedincomputingthetaxableincomeoranexemptionorreductiongrantedfortheyearin
questionundertheprovisionsoftheIncometaxAct,1961(43of1961)referredtoinparagraph4(c)of
thisArticlewhichcorrespondstotheproportionofthatresident'stotalproductioninthatyearwhichwas
actuallysoldintheIndianDomesticTariffAreaunderorderissuedbytheChiefControllerofImportand
Export being Nos. 21/9093, 22/9093, 23/9023, 25/9023, 26/9023, 27/9093, dated 3031990 and
similar Orders from time to time published in the Official Gazette by the Central Government under
powerconferredonitbysection3oftheImportandExport(Control)Act,1947(18of1947).
4.Theprovisionsreferredtointhisparagraphare:
(a) sections10(4),10(4B),10(6)(viia),10(15)(iv),33AB,80HHD,80Iand80IA
(b) any other provision which may subsequently be enacted granting an exemption or reduction from tax
which is agreed by the competent authorities of the Contracting States to be of a substantially similar
character to a provision referred to in subparagraph (a) of this paragraph, if it has not been modified
thereafterorhasbeenmodifiedonlyinminorrespectssoasnottoaffectitsgeneralcharacter
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(c) sections10Aand10B.
5.RelieffromUnitedKingdomtaxshalltobegivenbyvirtueofthisparagraph3ofthisArticleinrespectofincomefromany
sourcesiftheincomerelatestoaperiodstartingmorethan10fiscallyyearsafterthedeductionincomputingtaxableincome
orexemptionfrom,orreductionof,IndiantaxisfirstgrantedtotheresidentoftheUnitedKingdomortotheresidentofIndia,
asthecasemaybe,inrespectofthatsource.
6.IncomewhichinaccordancewithprovisionsofthisConventionisnottobesubjectedtotaxinaContractingStatemaybe
takenintoaccountforcalculatingtherateoftaxtobeimposedinthatContractingStateonotherincome.
7. For the purposes of paragraphs 1 and 2 of this Article profits, income and chargeable gains, owned by a resident of a
ContractingStatewhichmaybetaxedintheotherContractingStateinaccordancewiththeprovisionsofthisConventionshall
bedeemedtoarisefromsourcesinthatotherContractingState.
25.5[***]
5. Article 25 omitted by Notification No. 10/2014 [F.No.505/3/1986FTDI], dated 1022014, w.r.e.f. 27122013.
Priortoitsomission,article25readasunder:
"ARTICLE25
PARTNERSHIPS
1.Where,underanyprovisionofthisConvention,apartnershipisentitled,asresidentofIndia,toexemptionfromtaxin
the United Kingdom on any income or capital gains, that provision shall not be construed as restricting the right of the
UnitedKingdomtotaxanymemberofthepartnershipwhoisaresidentoftheUnitedKingdomonhisshareoftheincome
andcapitalgainsofthepartnershipbutanysuchincomeorgainsshallbetreatedforthepurposesofArticle24ofthis
ConventionasincomeorgainsfromsourcesinIndia.
2.NothinginArticle11ofthisConventionshallentitleapartnershipwhichisaresidentofIndiatoataxcreditinrespect
of dividends paid to the partnership by a company which is a resident of the United Kingdom but any member of the
partnershipwhoisaresidentofIndiashallberegardedasentitledtothetaxcredittowhichhewouldhaveentitledunder
that Article, if his share of those dividends has been paid to him by the company which is a resident of the United
Kingdom."
ARTICLE26
NONDISCRIMINATION
1.ThenationalsofaContractingStateshallnotbesubjectedintheotherContractingStatetoanytaxationoranyrequirement
connectedtherewithwhichisotherormoreburdensomethanthetaxationoranyrequirementconnectedtherewithwhichis
other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same
circumstancesareormaybesubjected.
2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the otherContractingState
shallnotbelessfavorablyleviedinthatotherStatethanthetaxationleviedonenterprisesofthatotherStatecarryingonthe
sameactivitiesinthesamecircumstancesorunderthesameconditions.Thisprovisionsshallnotbeconstruedaspreventinga
ContractingStatefromchargingtheprofitsofapermanentestablishmentwhichanenterpriseoftheotherContractingState
hasinthefirstmentionedStateatarateoftaxwhichishigherthanthatimposedontheprofitsofasimilarenterpriseofthe
firstmentionedContractingState,norasbeinginconflictwiththeprovisionsofparagraph4ofArticle7ofthisConvention.
3.NothingcontainedinthisArticleshallbeconstruedasobligingaContractingStatetogranttoindividualsnotresidentinthe
Stateanypersonalallowances,reliefsandreductionsfortaxationpurposeswhicharebylawavailableonlytoindividualswho
aresoresident.
4.EnterprisesofaContractingState,thecapitalofwhichiswhollyorpartlyownedorcontrolled,directlyorindirectly,byone
ormoreresidentsoftheotherContractingState,shallnotbesubjectedinthefirstmentionedContractingStatetoanytaxation
oranyrequirementconnectedtherewithwhichisotherormoreburdensomethanthetaxationandconnectedrequirementsto
whichothersimilarenterprisesofthatfirstmentionedStateareormaybesubjected.
5.InthisArticle,theterm"taxation"meanstaxeswhicharethesubjectofthisConvention.
ARTICLE27
MUTUALAGREEMENTPROCEDURE
1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will
result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the
nationallawsofthoseStates,presenthiscasetothecompetentauthorityoftheContractingState,ofwhichheisaresident.
2.Thecompetentauthorityshallendeavour,iftheobjectionappearstoittobejustifiedandifitisnotitselfabletoarriveatan
appropriatesolution,toresolvethecasebymutualagreementwiththecompetentauthorityoftheotherContractingState,with
aviewtotheavoidanceoftaxationnotinaccordancewiththeConvention.
3.ThecompetentauthoritiesoftheContractingStateshallendeavourtoresolvebymutualagreementanydifficultiesordoubts
arisingastotheinterpretationorapplicationoftheConvention.
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4.ThecompetentauthoritiesoftheContractingStatemaycommunicatewitheachotherdirectlyforthepurposeofreachingan
agreementinthesenseoftheprecedingparagraphs.
6[ARTICLE28
EXCHANGEOFINFORMATION
1. The competent authorities of the Contracting States shall exchange such information (including documents or certified
copiesofthedocuments)asisforeseeablyrelevantforcarryingouttheprovisionsofthisConventionortotheadministration
or enforcement of the domestic laws of the Contracting States concerning taxes of every kind and description imposed on
behalfoftheContractingStates,oroftheirpoliticalsubdivisionsorlocalauthorities,insofarasthetaxationthereunderisnot
contrarytothisConvention.TheexchangeofinformationisnotrestrictedbyArticles1and2ofthisConvention.
2.Anyinformationreceivedunderparagraph1ofthisArticlebyaContractingStateshallbetreatedassecretinthesame
mannerasinformationobtainedunderthedomesticlawsofthatStateandshallbedisclosedonlytopersonsorauthorities
(includingcourtsandadministrativebodies)concernedwiththeassessmentorcollectionof,theenforcementorprosecutionin
respectof,thedeterminationofappealsinrelationto,thetaxesreferredtoinparagraph1ofthisArticle,ortheoversightof
theabove.Suchpersonsorauthoritiesshallusetheinformationonlyforsuchpurposes.Theymaydisclosetheinformationin
publiccourtproceedingsorinjudicialdecisions.Notwithstandingtheforegoing,informationreceivedbyaContractingState
maybeusedforotherpurposeswhensuchinformationmaybeusedforsuchotherpurposesunderthelawsofbothStatesand
thecompetentauthorityofthesupplyingStateauthorisessuchuse.
3.Innocaseshalltheprovisionsofparagraphs1and2ofthisArticlebeconstruedsoastoimposeonaContractingStatethe
obligation:
(a) tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorof
theotherContractingState
(b) tosupplyinformationwhichisnotobtainableunderthelawsorinthenormalcourseoftheadministration
ofthatoroftheotherContractingState
(c) to supply information which would disclose any trade, business, industrial, commercial or professional
secretortradeprocess,orinformationthedisclosureofwhichwouldbecontrarytopublicpolicy.
4.IfinformationisrequestedbyaContractingStateinaccordancewiththisArticle,theotherContractingStateshalluseits
information gathering measures to obtain the requested information, even though that other State may not need such
information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of
paragraph3ofthisArticlebutinnocaseshallsuchlimitationsbeconstruedtopermitaContractingStatetodeclinetosupply
informationsolelybecauseithasnodomesticinterestinsuchinformation.
5.Innocaseshalltheprovisionsofparagraph3ofthisArticlebeconstruedtopermitaContractingStatetodeclinetosupply
information solely because the information is held by a bank, other financial institution, nominee or person acting in an
agencyorafiduciarycapacityorbecauseitrelatestoownershipinterestsinaperson.]
6.Article28substitutedbyNotificationNo.10/2014[F.No.505/3/1986FTDI],dated1022014,w.r.e.f.27122013.
Priortoitssubstitution,article28readasunder:
"ARTICLE28
EXCHANGEOFINFORMATION
1.ThecompetentauthoritiesoftheContractingStatesshallexchangesuchinformationasisnecessaryforcarryingoutthe
provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by this
Convention,insofarasthetaxationthereunderisnotcontrarytothisconvention,inparticularforthepreventionoffraudor
evasion of such taxes. The exchange of information is not restricted by Article 1 of this Convention. Any information
receivedbyaContractingStateshallbetreatedassecretinthesamemannerasinformationobtainedunderthedomestic
lawsofthatState.However,iftheinformationisoriginallyregardedassecretinthetransmittingStateitshallbedisclosed
onlytopersonsorauthorities(includingcourtsandadministrativebodies)involvedintheassessmentorcollectionof,the
enforcementorprosecutioninrespectof,orthedeterminationofappealsinrelationtothetaxeswhicharethesubjectof
this Convention. Such persons or authorities shall use the information only for such purposes but may disclose the
information in public court proceedings or in judicial decisions. The competent authorities shall, through consultation,
develop appropriate conditions, methods and techniques concerning the matters in respect of which such exchanges of
informationshallbemade,including,whereappropriate,exchangesofinformationregardingtaxavoidance.
2.Innocaseshalltheprovisionsofparagraph1ofthisArticlebeconstruedsoastoimposeonaContractingStatethe
obligation:
(a) tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorofthe
otherContractingState
(b) tosupplyinformationwhichisnotobtainableunderthelawsorinthenormalcourseoftheadministration
ofthatoroftheotherContractingState
(c) to supply information which would disclose any trade, business, industrial, commercial or professional
secretortradeprocess,orinformation,thedisclosureofwhichwouldbecontrarytopublicpolicy."
about:blank 14/23
7[ARTICLE28A
TAXEXAMINATIONSABROAD
1. At the request of the competent authority of a Contracting State (the "requesting State"), the competent authority of the
otherContractingState(the"requestedState")mayallowrepresentativesofthecompetentauthorityoftherequestingStateto
enteritsterritorytointerviewindividualsandexaminerecordswiththepriorwrittenconsentofthepersonsconcerned.The
competentauthorityoftherequestingStateshallnotifythecompetentauthorityoftherequestedStateofthetimeandplaceof
themeetingwiththeindividualsconcerned.
2.AttherequestofthecompetentauthorityoftherequestingState,thecompetentauthorityoftherequestedStatemayallow
representativesofthecompetentauthorityoftherequestingStatetobepresentattheappropriatepartofataxexaminationin
theterritoryoftherequestedState.
3. If the request referred to in paragraph 2 of this Article is acceded to, the competent authority of the requested State
conductingtheexaminationshall,assoonaspossible,notifythecompetentauthorityoftherequestingState about the time
and place of the examination, the authority or official designated to carry out the examination and the procedures and
conditionsrequiredbytherequestedStatefortheconductoftheexamination.Alldecisionswithrespecttotheconductofthe
taxexaminationshallbemadebytherequestedStateconductingtheexamination.]
7.Article28AinsertedbyNotificationNo.10/2014[F.No.505/3/1986FTDI],dated1022014,w.r.e.f.27122013.
8[ARTICLE28B
ASSISTANCEINTHECOLLECTIONOFTAXES
1.TheContractingStatesshalllendassistancetoeachotherinthecollectionofrevenueclaimsinrespectoftaxescoveredby
the Convention. This assistance is not restricted by Article 1. The competent authorities of the Contracting States may by
mutualagreementsettlethemodeofapplicationofthisArticle.
2. The term "revenue claim" as used in this Article means an amount owed in respect of taxes covered by this Convention,
insofarasthetaxationthereunderisnotcontrarytothisAgreementoranyotherinstrumenttowhichtheContractingStates
areparties,aswellasinterest,administrativepenaltiesandcostsofcollectionorconservancyrelatedtosuchamount.
3.WhenarevenueclaimofaContractingStateisenforceableunderthelawsofthatStateandisowedbyapersonwho,at
thattime,cannot,underthelawsofthatState,preventitscollection,thatrevenueclaimshall,attherequestofthecompetent
authorityofthatState,beacceptedforpurposesofcollectionbythecompetentauthorityoftheotherContractingState.That
revenueclaimshallbecollectedbythatotherStateinaccordancewiththeprovisionsofitslawsapplicabletotheenforcement
andcollectionofitsowntaxesasiftherevenueclaimwerearevenueclaimofthatotherState.
4.WhenarevenueclaimofaContractingStateisaclaiminrespectofwhichthatStatemay,underitslaw,takemeasuresof
conservancy with a view to ensure its collection, that revenue claim shall, at therequest of the competent authority of that
State,beacceptedforpurposesoftakingmeasuresofconservancybythecompetentauthorityoftheotherContractingState.
ThatotherStateshalltakemeasuresofconservancyinrespectofthatrevenueclaiminaccordancewiththeprovisionsofits
lawsasiftherevenueclaimwerearevenueclaimofthatotherStateevenif,atthetimewhensuchmeasuresareapplied,the
revenueclaimisnotenforceableinthefirstmentionedStateorisowedbyapersonwhohasarighttopreventitscollection.
5.WhenaContractingStatemay,underitslaw,takeinterimmeasuresofconservancybyfreezingofassetsbeforearevenue
claim is raised against a person, the competent authority of the other Contracting State, if requested by the competent
authorityofthefirstmentionedState,shalltakemeasuresforfreezingtheassetsofthatpersoninthatContractingStatein
accordancewiththeprovisionsofitslaw.
6. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim acceptedbyaContractingState for purposes of
paragraph3or4shallnot,inthatState,besubjecttothetimelimitsoraccordedanypriorityapplicabletoarevenueclaim
underthelawsofthatStatebyreasonofitsnatureassuch.Inaddition,arevenueclaimacceptedbyaContractingStatefor
thepurposesofparagraph3or4shallnot,inthatState,haveanypriorityapplicabletothatrevenueclaimunderthelawsof
theotherContractingState.
7. Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall not be
broughtbeforethecourtsoradministrativebodiesoftheotherContractingState.
8. Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other
ContractingStatehascollectedandremittedtherelevantrevenueclaimtothefirstmentionedState,therelevantrevenueclaim
ceasestobe:
(a) inthecaseofarequestunderparagraph3,arevenueclaimofthefirstmentionedStatethatisenforceable
under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that
State,preventitscollection,or
(b) in the case of a request under paragraph 4, a revenue claim of the firstmentioned State in respect of
whichthatStatemay,underitslaws,takemeasuresofconservancywithaviewtoensureitscollectionthe
competentauthorityofthefirstmentionedStateshallpromptlynotifythecompetentauthorityoftheother
Stateof that fact and, at the option of the other State, the firstmentioned State shall either suspend or
withdrawitsrequest.
9.InnocaseshalltheprovisionsofthisArticlebeconstruedsoastoimposeonaContractingStatetheobligation:
(a) tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorofthe
otherContractingState
about:blank 15/23
(b) tocarryoutmeasureswhichwouldbecontrarytopublicpolicy
(c) toprovideassistanceiftheotherContractingStatehasnotpursuedallreasonablemeasuresofcollection
orconservancy,asthecasemaybe,availableunderitslawsoradministrativepractice
(d) to provide assistance in those cases where the administrative burden for that State is clearly
disproportionatetothebenefittobederivedbytheotherContractingState.]
8.Article28BinsertedbyNotificationNo.10/2014[F.No.505/3/1986FTDI],dated1022014,w.r.e.f.27122013.
9[ARTICLE28C
LIMITATIONOFBENEFITS
1.BenefitsofthisConventionshallnotbeavailabletoaresidentofaContractingState,orwithrespect to any transaction
undertakenbysucharesident,ifthemainpurposeoroneofthemainpurposesofthecreationorexistenceofsucharesident
orofthetransactionundertakenbyhim,wastoobtainbenefitsunderthisConvention.
2. Where by reason of this Article a resident of a Contracting State is denied the benefits of this Convention in the other
Contracting State, the competent authority of that other Contracting State shall notify the competent authority of the first
mentionedContractingState.]
9.Article28CinsertedbyNotificationNo.10/2014[F.No.505/3/1986FTDI],dated1022014,w.r.e.f.27122013.
ARTICLE29
DIPLOMATICANDCONSULAROFFICIALS
1. Nothing in this convention shall affect the fiscal privileges of diplomatic or consular officials under the general rules of
internationallaworundertheprovisionsofspecialagreements.
2. Notwithstanding the provisions of paragraph 1 of article 4 (Fiscal domicile) of this Convention, an individual who is a
member of the diplomatic, consular or permanent mission of a Contracting State which is situated in the other Contracting
StateandwhoissubjecttotaxinthatotherStateonlyifhederivesincomefromsourcestherein,shallnotbedeemedtobea
residentofthatotherStateforthepurposesofthisConvention.
ARTICLE30
ENTRYINTOFORCE
1.EachoftheContractingStatesshallnotifytotheotherthecompletionoftheproceduresrequiredbyitslawforthebringing
intoforceoftheConvention.ThisConventionshallentireintoforceonthedateofthelaterofthesenotificationsandshall
thereuponhaveeffect:
(a) intheUnitedKingdom:
(i) in respect of incometax and capital gains tax, for any year of assessment beginning on or after 6th April in the
calendaryearnextfollowingthatinwhichthelaterofthenotificationsisgiven
(ii) inrespectofcorporationtax,foranyfinancialyearbeginningonorafter1Aprilinthecalendaryearnextfollowing
thatinwhichthelaterofthenotificationsisgiven
(iii) inrespectofpetroleumrevenuetax,foranychargeableperiodbeginningonorafter1stJanuaryinthecalendaryear
nextfollowingthatinwhichthelaterofthenotificationsisgiven
(b) inIndia,inrespectofincomearisinginanyfiscalyearbeginningonorafter
thefirstdayofAprilnextfollowingthecalendaryearinwhichthelaterofthe
notificationsisgiven.
2.Subjecttotheprovisionsofparagraph3ofthisArticle,theConventionbetweentheGovernmentoftheUnitedKingdomof
GreatBritainandNorthernIrelandandtheGovernmentofIndiafortheAvoidanceofDoubleTaxationandthePreventionof
Fiscal Evasion with Respect to Taxes on Income and Capital Gains signed in New Delhi on 16th April, 1981 (hereinafter
referredtoas"the1981Convention")shallterminateandceasetobeeffectivefromthedateuponwhichthisConventionhas
effectinrespectofthetaxestowhichthisConventionappliesinaccordancewiththeprovisionsofparagraph1ofthisArticle.
3. Where any provisions of the 1981 Convention would have afforded any greater relief from tax than is due under this
Convention,anysuchprovisionasaforesaidshallcontinuetohaveeffect
(a) intheUnitedKingdom,foranyyearofassessmentorfinancialyearand
(b) inIndia,foranyfiscalyear
beginning,ineithercase,beforetheentryintoforceofthisConvention.
ARTICLE31
TERMINATION
about:blank 16/23
ThisConventionshallremaininforceuntilterminatedbyoneoftheContractingState.EitherContractingStatemayterminate
the Convention, through the diplomatic channel, by giving notice of termination at least six months before the end of any
calendaryearbeginningaftertheexpirationoftenyearsfromthedateofentryintoforceoftheConvention.Insuchevent,the
Conventionshallceasetohaveeffect
(a) intheUnitedKingdom
(i) in respect of incometax and capital gains tax, for any year of assessment beginning on or after 6th April in the
calendaryearnextfollowingthatinwhichthenoticeisgiven
(ii) inrespectofcorporationtax,foranyfinancialyearbeginningonorafter1stAprilinthecalendaryearnextfollowing
thatinwhichthenoticeisgiven
(iii) inrespectofpetroleumrevenuetax,foranychargeableperiodbeginningonorafter1stJanuaryinthecalendaryear
nextfollowingthatinwhichthenoticeisgiven
(b) inIndia,inrespectofincomearisinginanyfiscalyearbeginningonorafter
the first day of April next following the calendar year in which the notice
given.
INWITNESSwhereoftheundersigned,dulyauthorisedtheretobytheirrespectiveGovernments,havesignedthisConvention.
DONEonthis25thdayofJanuary,1993,inNewDelhiontwooriginalcopieseachintheHindiandEnglishlanguages,both
textbeingequallyauthentic.Incaseofdivergencebetweenthetwotexts,theEnglishtextshallbetheoperativeone.
FortheGovernmentof FortheGovernmentofthe
theRepublicofIndia: UnitedKingdomofGreat
BritainandNorthern
Ireland:
BRITISHHIGHCOMMISSION
NEWDELHI,JANUARY25,1993
YourExcellency:
IhavethehonourtorefertotheConventionbetweentheGovernmentoftheUnitedKingdomofGreatBritainandNorthern
Ireland and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on income and capital gains which has been signed today and to propose on behalf of the
GovernmentoftheUnitedKingdomofGreatBritainandNorthernIreland:
(a) that,inapplyingsubparagraph(j)ofparagraph2ofArticle
5,forthepurposeofdeterminingwhetherabuildingsiteor
constructioninstallationorassemblyprojectorsupervisory
activityinconnectiontherewithhascontinuedforaperiod
ofmorethansixmonths,theContractingStatesshall:
(i) takenoaccountoftimepreviouslyspentbyemployeesoftheenterpriseonothersitesorprojectswhichhave
noconnectionwiththesiteorprojectinquestion
(ii) applyformorethansixmonthstestseparatelytoeachsiteorprojectwhichhasnoconnectionwithanyother
siteorprojectandtoeachgroupofconnectedsitesorprojectsand
(iii) regardabuildingsiteasasinglesite,evenifseveralcontractshavebeenenteredintofortheworkbeingdone,
providedthatifformsacoherentwholecommerciallyandgeographically
(b) that,inapplyingparagraph 3 of Article 7, for the purpose
of determining whether a permanent establishment has
takenanactivepartinnegotiating,concludingorfulfilling
contracts entered into by the enterprise, the Contracting
States shall take into considerations all relevant
circumstancesand,inparticular,thefactthatacontractor
order relating to the purchase or provision of goods or
services was negotiated or placed with the head office of
the enterprise, rather than with the permanent
establishment, shall not preclude them from determining
thatthepermanentestablishmentdidtakeanactivepartin
negotiating,concludingorfulfillingthatcontract
(c) that,inapplyingparagraph 1 of Article 8, for the purpose
of determining the profits of an enterprise which are
derived from the operation of aircraft in international
traffic, the Contracting States shall treat interest from the
investment or deposit of receipt arising directly from the
operation of aircraft in international traffic as being
includedinthoseprofits,butshallnottreatinterestderived
fromthereinvestmentofsuchinterestasbeingsoincluded.
IftheforegoingproposalisacceptabletotheGovernmentoftheRepublicofIndiaIhavethehonourtosuggestthatthepresent
NoteandYourExcellency'sreplytothateffectshouldberegardedasconstitutinganagreementbetweenthetwoGovernments
about:blank 17/23
inthismatter.
IavailmyselfofthisopportunitytorenewtoYourExcellencytheassurancesofmyhighestconsideration.
HisExcellencyMr.S.Ramamurti, (NicholasFenn)
Chairman, HighCommissioner
CentralBoardofDirectTaxes,
MinistryofFinance,
GovernmentofIndia,
NewDelhi
GOVERNMENTOFINDIA
MINISTRYOFFINANCE
(DEPARTMENTOFREVENUE)
CENTRALBOARDOFDIRECTTAXES
NEWDELHI,JANUARY25,1993
YourExcellency:
IhavethehonourtoacknowledgereceiptofYourExcellency'sNoteoftodaywhichreadsasfollows:
I have the honour to refer to the Convention between the Government of the United Kingdom of Great Britain and
NorthernIrelandandtheGovernmentoftheRepublicofIndiafortheAvoidanceofDoubleTaxationandthePreventionof
FiscalEvasionwithrespecttoTaxesonincomeandcapitalgainswhichhasbeensignedtodayandtoproposeonbehalfof
theGovernmentoftheUnitedKingdomofGreatBritainandNorthernIreland:
(a) that,inapplyingsubparagraph(j)ofparagraph2ofArticle
5,forthepurposeofdeterminingwhetherabuildingsiteor
construction, installation or assembly project or
supervisoryactivityinconnectiontherewithhascontinued
for a period of more than six months, the Contracting
Statesshall:
(i) takenoaccountoftimepreviouslyspentbyemployeesoftheenterpriseonothersitesorprojectswhichhave
noconnectionwiththesiteorprojectinquestion
(ii) applymorethansixmonthstestseparatelytoeachsiteorprojectwhichhasnoconnectionwithanyothersite
orprojectandtoeachgroupofconnectedsitesorprojectsand
(iii) regardabuildingsiteasasinglesite,evenifseveralcontractshavebeenenteredintofortheworkbeingdone,
providedthatitformsacoherentwholecommerciallyandgeographically
(b) that,inapplyingparagraph 3 of Article 7, for the purpose
of determining whether a permanent establishment has
takenanactivepartinnegotiating,concludingorfulfilling
contracts entered into by the enterprise, the Contracting
States shall take into consideration all relevant
circumstancesand,inparticular,thefactthatacontractor
order relating to the purchase or provision of goods or
services was negotiated or placed with the head office of
the enterprise, rather than with the permanent
establishment, shall not preclude them from determining
thatthepermanentestablishmentdidtakeanactivepartin
negotiating,concludingorfulfillingthatcontract
(c) that,inapplyingparagraph 1 of Article 8, for the purpose
of determining the profits of an enterprise which are
derived from the operation of aircraft in international
traffic, the Contracting States shall treat interest derived
from the investment or deposit of receipts arising directly
from the operation of aircraft in international traffic as
being included in those profits, but shall not treat interest
derivedfromthereinvestmentofsuchinterestasbeingso
included.
If the foregoing proposal is acceptable to the Government of the Republic of India have the honour to suggest that the
presentNoteandYourExcellency'sreplytothateffectshouldberegardedasconstitutinganagreementbetweenthetwo
Governmentinthismatter."
Inreply,IhavethehonourtostatethattheGovernmentoftheRepublicofIndiaacceptstheproposalmadethereinandagrees
thatYourExcellency'sNoteandthepresentreplyshallconstituteanagreementbetweentheGovernmentofRepublicofIndia
andtheGovernmentoftheUnitedKingdomofGreatBritainandNorthernIrelandinthismatter.
IavailmyselfofthisopportunitytorenewtoYourExcellencytheassurancesofmyhighestconsideration.
about:blank 18/23
(S.Ramamurti)
Chairman
CentralBoardofDirectTaxes
India.
HisExcellency
SirNicholasFenn,KCMG
BritishHighCommission
inIndia,
NewDelhi

AMENDMENTNOTIFICATION

SECTION90OFTHEINCOMETAXACT,1961DOUBLETAXATIONAGREEMENTAGREEMENTFOR
AVOIDANCEOFDOUBLETAXATIONANDPREVENTIONOFFISCALEVASIONWITHFOREIGN
COUNTRIESUNITEDKINGDOM&NORTHERNIRELANDAMENDMENTINNOTIFICATIONNO.GSR
91(E),DATED1121994
NOTIFICATIONNO.10/2014[F.NO.505/3/1986FTDI],DATED1022014
Whereas,theProtocol(hereinafterreferredtoasthesaidProtocol)amendingtheconventionbetweentheGovernmentofthe
Republic of India and the Government of the United Kingdom of Great Britain and Northern Ireland, for the avoidance of
double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital which was signed at
Londononthe30thOctober,2012.
2.Andwhereas,thedateofentryintoforceofthesaidprotocolamendingtheConventionisthe27thdayofDecember,2013,
beingthedateoflaterofthenotificationsofcompletionoftheproceduresasrequiredbytherespectivelawsforentryinto
forceofthesaidProtocolamendingtheConvention,inaccordancewiththeprovisionsofArticleXofthesaidProtocol.
3.Now,therefore,inexerciseofthepowersconferredbysection90oftheIncometaxAct,1961(43of1961),theCentral
GovernmentherebydirectsthatalltheprovisionsofsaidProtocolassetoutintheAnnexurehereto,shallbegiveneffecttoin
theUnionofIndiawitheffectfromthe27thdayofDecember,2013.
ANNEXURE
PROTOCOLAMENDINGTHECONVENTIONBETWEENTHEGOVERNMENTOFTHEREPUBLICOFINDIA
ANDTHEGOVERNMENTOFTHEUNITEDKINGDOMOFGREATBRITAINANDNORTHERNIRELANDFOR
THEAVOIDANCEOFDOUBLETAXATIONANDTHEPREVENTIONOFFISCALEVASIONWITHRESPECT
TOTAXESONINCOMEANDCAPITALGAINS
TheGovernmentoftheRepublicofIndiaandtheGovernmentoftheUnitedKingdomofGreatBritainandNorthernIreland.
Desiring to amend the Convention between the Government of the Republic of India and the Government of the United
KingdomofGreatBritainandNorthernIrelandfortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwith
respect to taxes on income and capital gains signed at New Delhi on 25 January, 1993 (hereinafter referred to as "the
Convention").
Haveagreedasfollows:
ARTICLEI
Subparagraph(f)ofparagraph1ofArticle3shallbedeletedandreplacedbythefollowing:
"(f) the term "person" includes an individual, a company, a body of persons and any other entity which is treated as a
taxableunitunderthetaxationlawsinforceintherespectiveContractingStates"
ARTICLEII
Paragraph2ofArticle3shallbedeleted.Paragraph3shallnotberenumbered.
ARTICLEIII
Paragraph1ofArticle4(Fiscaldomicile)shallbedeletedandreplacedbythefollowing:
"1.ForthepurposesofthisConvention,theterm"residentofaContractingState"meansanypersonwho,underthelaws
ofthatState,isliabletotaxthereinbyreasonofhisdomicile,residence,placeofmanagement,placeofincorporation,or
anyothercriterionofasimilarnature,provided,however,that:
(a) this term does not include any person who is liable to tax in that State in respect only of income from
sourcesinthatStateand
(b)
inthecaseofincomederivedorpaidbyapartnership,estate,ortrust,thistermappliesonlytotheextent
thattheincomederivedbysuchpartnership,estate,ortrustissubjecttotaxinthatStateastheincomeof
aresident,eitherinitshandsorinthehandsofitspartnersorbeneficiaries"
ARTICLEIV
Article11(Dividends)oftheConventionshallbedeletedandreplacedbythefollowing:
"ARTICLE11
Dividends
1.
about:blank 19/23
DividendspaidbyacompanywhichisaresidentofaContractingState
to a resident of the other Contracting State may be taxed in that other
State.
2. However,suchdividends 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 beneficial owner of the dividends is a
resident of the other Contracting State, the tax so charged shall not
exceed:
(a) 15 per cent of the gross amount of the dividends where those dividends are paid out of
income(includinggains)deriveddirectlyorindirectlyfromimmovablepropertywithinthe
meaning of Article 6 by an investment vehicle which distributes most of this income
annuallyandwhoseincomefromsuchimmovablepropertyisexemptedfromtax
(b) 10percentofthegrossamountofthedividends,inallothercases.
The competent authorities of the Contracting States shall by mutual
agreement settle the mode of application of these limitations. The
provisionsofthisparagraphshallnotaffectthetaxationofthecompany
inrespectoftheprofitsoutofwhichthedividendsarepaid.
3. Theterm"dividends"asusedinthisArticlemeansincomefromshares,
orotherrights,notbeingdebtclaims,participatinginprofits,aswellas
any other item which is subjected to the same taxation treatment as
income from shares by the laws of the State of which the company
makingthedistributionisaresident.
4. Theprovisionsofparagraphs1and2ofthisArticleshallnotapplyifthe
beneficialownerofthedividends,beingaresidentofaContractingState,
carriesonbusinessintheotherContractingStateofwhichthecompany
paying the dividends is a resident, through a permanent establishment
situated therein, or performs in that other State independent personal
servicesfromafixedbasesituatedtherein,andtheholdinginrespectof
which the dividends are paid is effectively connected with such
permanent establishment. In such case the provisions of Article 7
(Businessprofits)orArticle15(Independentpersonalservices),asmay
bethecase,shallapply.
5. Where a company which is a resident of a Contracting State derives
profitsorincomefromtheotherContractingState,thatotherStatemay
notimposeanytaxonthedividendspaidbythecompany,exceptinsofar
assuchdividendsarepaidtoaresidentofthatotherStateorinsofar as
the holding in respect of which the dividends are paid is effectively
connectedwithapermanentestablishmentsituatedinthatotherState,nor
subject the company's undistributed profits to a tax on undistributed
profits, even if the dividends paid or the undistributed profits consist
whollyorpartlyofprofitsorincomearisinginthatotherState.
6. NoreliefshallbeavailableunderthisArticleifitwasthemainpurpose
oroneofthemainpurposesofanypersonconcernedwiththecreationor
assignmentofthesharesorotherrightsinrespectofwhichthedividend
is paid to take advantage of this Article by means of that creation or
assignment."
ARTICLEV
Article25(Partnerships)oftheConventionshallbedeletedandthesubsequentarticlesshallnotberenumbered.
ARTICLEVI
Article28(Exchangeofinformation)oftheConventionshallbedeletedandreplacedbythefollowingArticle:
"ARTICLE28
Exchangeofinformation
1. ThecompetentauthoritiesoftheContractingStatesshallexchangesuchinformation
(includingdocumentsorcertifiedcopiesofthedocuments)asisforeseeablyrelevant
for carrying out the provisions of this Convention or to the administration or
enforcement of the domestic laws of the Contracting States concerning taxes of
everykindanddescriptionimposedonbehalfof the Contracting States, or of their
politicalsubdivisionsorlocalauthorities,insofarasthetaxationthereunderisnot
contrarytothisConvention.TheexchangeofinformationisnotrestrictedbyArticles
1and2ofthisConvention.
2. Anyinformationreceived under paragraph 1 of this Article by a Contracting State
shall be treated as secret in the same manner as information obtained under the
about:blank 20/23
domestic laws of that State and shall be disclosed only to persons or authorities
(including courts and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of, the determination of
appeals in relation to, the taxes referred to in paragraph 1 of this Article, or the
oversightoftheabove.Suchpersonsorauthoritiesshallusetheinformationonlyfor
suchpurposes.Theymaydisclosetheinformationinpubliccourtproceedingsorin
judicial decisions. Notwithstanding the foregoing, information received by a
Contracting State may be used for other purposes when such information may be
used for such other purposes under the laws of both States and the competent
authorityofthesupplyingStateauthorisessuchuse.
3. Innocaseshalltheprovisionsofparagraphs1and2ofthisArticlebeconstruedso
astoimposeonaContractingStatetheobligation:
(a) tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthator
oftheotherContractingState
(b) to supply information which is not obtainable under the laws or in the normal course of the
administrationofthatoroftheotherContractingState
(c) to supply information which would disclose any trade, business, industrial, commercial or
professionalsecretortradeprocess,orinformationthedisclosureofwhichwouldbecontraryto
publicpolicy.
4. If information is requested by a
Contracting State in accordance with this
Article, the other Contracting State shall
use its information gathering measures to
obtain the requested information, even
thoughthatotherStatemaynotneedsuch
informationforitsown tax purposes. The
obligation contained in the preceding
sentence is subject to the limitations of
paragraph 3 of this Article but in no case
shall such limitations be construed to
permit a Contracting State to decline to
supply information solely because it has
nodomesticinterestinsuchinformation.
5. In no case shall the provisions of
paragraph3ofthisArticlebeconstruedto
permit a Contracting State to decline to
supply information solely because the
information is held by a bank, other
financial institution, nominee or person
actinginanagencyorafiduciarycapacity
orbecauseitrelatestoownershipinterests
inaperson."
ARTICLEVII
AnewArticle28A(TaxExaminationAbroad)willbeinsertedafterArticle28(ExchangeofInformation)asfollows:
"ARTICLE28A
TaxExaminationsAbroad
1. Attherequestof the competent authority of a Contracting State (the "requesting State"),thecompetent
authorityoftheotherContractingState(the"requestedState")mayallowrepresentativesofthecompetent
authorityoftherequestingStatetoenteritsterritorytointerviewindividualsandexaminerecordswiththe
prior written consent of the persons concerned. The competent authority of the requesting State shall
notify the competent authority of the requested State of the time and place of the meeting with the
individualsconcerned.
2. AttherequestofthecompetentauthorityoftherequestingState,thecompetentauthorityoftherequested
State may allow representatives of the competent authority of the requesting State to be present at the
appropriatepartofataxexaminationintheterritoryoftherequestedState.
3. If the request referred to in paragraph 2 of this Article is acceded to, the competent authority of the
requestedStateconductingtheexaminationshall,assoonaspossible,notifythecompetentauthorityof
the requesting State about the time and place of the examination, the authority or official designated to
carry out the examination and the procedures and conditions required by the requested State for the
conductoftheexamination.Alldecisionswithrespecttotheconductofthetaxexaminationshallbemade
bytherequestedStateconductingtheexamination."
ARTICLEVIII
about:blank 21/23
AnewArticle28B(AssistanceintheCollectionofTaxes)willbeinsertedafternewArticle28A(insertedbyArticleVIIof
thisAmendingProtocol)asfollows:
"ARTICLE28B
AssistanceintheCollectionofTaxes
1. The Contracting States shall lend assistance to each other in the collection of
revenueclaimsinrespectoftaxescoveredbytheConvention.Thisassistanceisnot
restrictedbyArticle1.ThecompetentauthoritiesoftheContractingStatesmayby
mutualagreementsettlethemodeofapplicationofthisArticle.
2. Theterm"revenueclaim"asusedinthisArticlemeansanamountowedinrespect
of taxes covered by this Convention, insofar as the taxation thereunder is not
contrarytothisAgreementoranyotherinstrumenttowhichtheContractingStates
are parties, as well as interest, administrative penalties and costs of collection or
conservancyrelatedtosuchamount.
3. WhenarevenueclaimofaContractingStateisenforceableunderthe laws of that
Stateandisowedbyapersonwho,atthattime,cannot,underthelawsofthatState,
prevent its collection, that revenue claim shall, at the request of the competent
authority of that State, be accepted for purposes of collection by the competent
authority of the other Contracting State. That revenue claim shall be collected by
that other State in accordance with the provisions of its laws applicable to the
enforcementandcollectionofitsowntaxesasiftherevenueclaimwerearevenue
claimofthatotherState.
4. WhenarevenueclaimofaContractingStateisaclaiminrespectofwhichthatState
may, under its law, take measures of conservancy with a view to ensure its
collection,thatrevenueclaimshall,attherequestofthecompetentauthorityofthat
State,beacceptedforpurposesoftakingmeasuresofconservancybythecompetent
authority of the other Contracting State. That other State shall take measures of
conservancyinrespectofthatrevenueclaiminaccordancewiththeprovisionsofits
lawsasiftherevenueclaimwerearevenueclaimofthatotherStateevenif,atthe
time when such measures are applied, the revenue claim is not enforceable in the
firstmentionedStateorisowedbyapersonwhohasarighttopreventitscollection.
5. WhenaContractingStatemay,underitslaw,takeinterimmeasuresofconservancy
byfreezingofassetsbeforearevenueclaimisraisedagainstaperson,thecompetent
authorityoftheotherContractingState,ifrequestedbythecompetentauthorityof
thefirstmentionedState,shalltakemeasuresforfreezingtheassetsofthatpersonin
thatContractingStateinaccordancewiththeprovisionsofitslaw.
6. Notwithstandingtheprovisionsofparagraphs3and4,arevenueclaimacceptedbya
ContractingStateforpurposesofparagraph3or4shallnot,inthatState,besubject
tothetimelimitsoraccordedany priority applicable to a revenue claim under the
laws of that State by reason of its nature as such. In addition, a revenue claim
acceptedbyaContractingStateforthepurposesofparagraph3or4shallnot,inthat
State,haveanypriorityapplicabletothatrevenueclaimunderthelawsoftheother
ContractingState.
7. Proceedingswithrespecttotheexistence,validityortheamountofarevenueclaim
ofaContractingStateshallnotbebroughtbeforethecourtsoradministrativebodies
oftheotherContractingState.
8. Where, at any time after a request has been made by a Contracting State under
paragraph3or4andbeforetheotherContractingStatehas collected and remitted
the relevant revenue claim to the firstmentioned State, the relevant revenue claim
ceasestobe:
(a) in the case of a request under paragraph 3, a revenue claim of the firstmentioned State that is
enforceableunderthelawsofthatStateandisowedbyapersonwho,atthattime,cannot,underthe
lawsofthatState,preventitscollection,or
(b) inthecaseofarequestunderparagraph4,arevenueclaimofthefirstmentionedStateinrespectof
whichthatStatemay,underitslaws,takemeasuresofconservancywithaviewtoensureitscollection
thecompetentauthorityofthefirstmentionedStateshallpromptlynotifythecompetentauthorityof
theotherStateofthatfactand,attheoptionoftheotherState,thefirstmentionedStateshalleither
suspendorwithdrawitsrequest.
9. In no case shall the provisions of this
Articlebeconstruedsoastoimposeona
ContractingStatetheobligation
(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other
ContractingState
about:blank 22/23
(b) tocarryoutmeasureswhichwouldbecontrarytopublicpolicy
(c) to provide assistance if the other Contracting State has not pursued all reasonable measures of collection or
conservancy,asthecasemaybe,availableunderitslawsoradministrativepractice
(d) to provide assistance in those cases where the administrative burden for that State is clearly disproportionate to the
benefittobederivedbytheotherContractingState."
ARTICLEIX
AnewArticle28CshallbeinsertedafternewArticle28B(insertedbyArticleVIIIofthisAmendingProtocol)asfollows:
"ARTICLE28C
LimitationofBenefits
1. BenefitsofthisConventionshallnotbeavailabletoaresidentofaContractingState,orwithrespectto
any transaction undertaken by such a resident, if the main purpose or one of the main purposes of the
creation or existence of such a resident or of the transaction undertaken by him, was to obtain benefits
underthisConvention.
2. WherebyreasonofthisArticlearesidentofaContractingStateisdeniedthebenefitsofthisConvention
in the other Contracting State, the competent authority of that other Contracting State shall notify the
competentauthorityofthefirstmentionedContractingState."
ARTICLEX
1. EachoftheContractingStatesshallnotifytheother,throughdiplomatic
channels,ofthecompletionoftheproceduresrequiredbyitslawforthe
bringingintoforceofthisProtocol.ThisProtocolshallenterintoforceon
thedateofthelaterofthesenotificationsandshallthereuponhaveeffect:
(a) inbothStatesinthecaseoftaxeswithheldatsource,inrespectofamountspaidon
orafterthedatethisProtocolentersintoforce,
(b) inIndia,inrespectoftaxesleviedforfiscalyearsbeginningonorafterthedatethis
Protocolentersintoforce
(c) intheUnitedKingdom:
(i) inrespectofincometaxandcapitalgainstax,foranyyearofassessmentbeginningonorafter6th
AprilinthecalendaryearnextfollowingthatinwhichthisProtocolentersintoforce
(ii) inrespectofcorporationtax,foranyfinancialyearbeginningonorafter1stApril in the calendar
yearnextfollowingthatinwhichthisProtocolentersintoforce
(iii) inrespectofpetroleumrevenuetax,foranychargeableperiodbeginningonorafter1stJanuaryin
thecalendaryearnextfollowingthatinwhichthisProtocolentersintoforce.
2. Notwithstanding the provisions of paragraph 1 of this Article, the
provisions of Articles VI, VII & VIII of this Protocol shall apply in
respect of any matter referred to in these Articles even if such matters
predatetheentryintoforceofthisProtocolortheeffectivedateofany
ofitsprovisions.
Inwitnesswhereoftheundersigned,dulyauthorisedtheretobytheirrespectiveGovernments,havesignedthisProtocol
Doneonthis30thdayofOctober2012,inLondonontwooriginalcopieseachintheEnglishandHindilanguages,bothtexts
beingequallyauthentic.Incaseofdivergencebetweenthetwotexts,theEnglishtextshallbetheoperativeone.

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12/5/2016 IncomeTaxDepartment

3. Substituted byNotification No. 10/2014 [F.No.505/3/1986FTDI], dated 1022014,w.r.e.f.27122013. Prior to

(b) inthecaseofroyaltieswithinparagraph3(b)ofthisArticle and fees

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