Afganisthan Legal Draft Template

Double Taxation

Avoidance AgreementAgreement for

avoidance of Double Taxation of income of enterprises operating aircraft

between the Government of India and Government of AfghanistanNotification

No.G.S.R. 514(E), dtd. 30.9.1975Whereas

the Government of India and the Government of Afganistan have concluded an

Agreement through exchange of letters as set out in the Annexure hereto, for

the avoidance of double taxation of income of enterprises operating aircraft;Now,

therefore, in exercise of the powers conferred by section 90 of the Income-tax

Act, 1961 (43 of 1961) and section 24A of the Companies (Profits) Surtax Act,

1964 (7 of 1964), the Central Government hereby directs that all the provisions

of the said Agreement shall be given effect to in the Union of India.ANNEXUREAmbassador

of IndiaKabul,September

14, 1975.Excellency,I

have, the honour to refer to the Agreement dated the 26th January, 1952 between

the Government of India and the Government of Afghanistan relating to air

services and to the discussions between the representatives of our two

Governments on the reciprocal exemption of the airlines of India and

Afghanistan from payment of income-tax and to confirm on behalf of the

Government of India the following understandings reached between our two

Governments:1. Income derived from

the operation of aircraft by the airlines of India shall be exempt from the

Afghanistan tax.2. Income derived from

the operation of aircraft by the airlines of Afghanistan shall be exempt from

the Indian tax.3. The exemption

provided for in paragraphs (1) and (2) above shall also apply in respect of

participation in pools of any kind regarding air transport by the airlines of

India or Afghanistan; the exemption shall not, however, apply to income from

operation of aircraft in internal traffic in India or Afghanistan.4. The exemption

provided for in paragraphs (1), (2) and (3) above shall have effect in relation

to the income derived from the operation of aircraft on or after the 26th day

of January, 1952, on which date the Agreement relating to air services was

signed between India and Afghanistan.In

case any tax on income relatable to the aforesaid period has been recovered by

either Government as of the date of this Agreement, the same shall be refunded

by that Government on an application to be made in this behalf within twelve

months of the said date by the airlines of India or the airlines of Afghanistan

as the case may be.1.2.3.4.5. It is understood

that:a. The term "

Indian tax " means the income-tax and surtax imposed under the tax laws of

India.b. The term "

Afghanistan tax " means the income tax and the business transactions tax

imposed by the Income Tax Law of Afghanistan.c. The terms "

Indian tax " and " Afghanistan tax " shall also include any

identical or substantially similar taxes which are imposed hereafter by India

or Afghanistan respectively in addition to or in place of the existing taxes.d. The term "

airlines of India " or " airlines of Afghanistan " means---i.

airlines

designated by the Government of India or the Government of Afghanistan, as the

case may be, in pursuance of the Agreement dated 26th January, 1952 (as amended

or revised from time to time) between the two Govern ment relating to air

services; orii.

airlines

which are authorised by the Government of India or the Government of

Afghanistan, as the case may be, by a general or special arrangement of between

the two Governments to operate chartered flights between or beyond their

territories.a.b.c.d.e. The term " internal

traffic " shall mean traffic which originates and terminates within India

or within Afghanistan, as the case may be.f. The term "

operation of aircraft " means a business of transportation by air of

persons, livestock, goods or mail carried on by the owners or lessors or

charterers of aircraft, including the sale of tickets for such transportation

on behalf of other enterprises and any other activity directly connected with

such transportation.I

have the honour also to propose that this letter and Your Excellency's letter

of reply confirming the foregoing understandings shall be regarded as

constituting an agreement between the two Governments for the avoidance of

double, taxation of income of enterprises operating aircraft which shall enter

into force on the date of Your Excellency's reply and shall remain in force

indefinitely, unless either of the Governments gives notice to the other

Government of its intention to terminate this Agreement on or before the

thirtieth day of June in any calendar year after the year 1980. In the event of

such a notice, this agreement shall cease to be effective:a. in India in respect

of income assessable for the assessment year commencing on the 1st day of April

in the second calendar year following the calendar year in which the notice is

given and the subsequent assessment years; andb. in Afghanistan in

respect of income assessable for the taxable year commencing on the 1st day of

Hamal corresponding to the 21st day of March, in the second calendar year

following the calendar year in which the notice, is given and the subsequent

taxable years.I

avail myself of this opportunity to renew to Your Excellency the assurances of

my highest consideration.(Sd.)

K. R. P. Singh,Ambassador

of India in Afghanistan,Kabul-Afghanistan.H.E.

Mr. Sultan Mahmood Ghazi,President,Civil

Aviation and Tourism Authority.Kabul-Afghanistan.September

14, 1975.PresidentCivil

Aviation And Tourism AuthorityExcellency,I

have the honour to acknowledge the receipt of Your Excellency's letter of

today's date which reads as follows:"

I have the honour to refer to the Agreement date the 26th January, 1952 between

the Government of India and the Government of Afghanistan relating to air services

and to the discussions between the, representatives of our two Governments on

the reciprocal exemption of the airlines of India and Afghanistan from payment

of income-tax and to confirm on behalf of the Government of India the following

understandings reached between our two Governments:1. Income denied from

the operation of aircraft by the airlines of India shall be exempt from the

Afghanistan tax.2. Income derived from

the operation of aircraft by the airlines of Afghanistan shall be exempt from

the Indian tax.3. The exemption

provided for in paragraphs (1) and (2) above shall also apply in respect of

participation in pools of any kind regarding air transport by the airlines of

India or Afghanistan; the exemption shall not, however, apply to income from

operation of aircraft in internal traffic in India or Afghanistan.4. The exemption

provided for in paragraphs (1), (2) and (3) above shall have effect in relation

to the income derived from the operation of aircraft on or after the 26th day

of January, 1952, on which date the Agreement relating to air services was

signed between India and Afghanistan.In case any tax on income relatable to the, aforesaid period has been recovered

by either Government as of the date of this Agreement, the same shall be refunded

by that Government on an application to be made in this behalf within twelve

months of the said date by the airlines of India or the airlines of Afghanistan

as the case may be.1.2.3.4.5. It is understood

that:a. The term "

Indian tax " means the income-tax and surtax imposed under the tax laws of

India.b. The term "

Afghanistan tax " means the income-tax and the business transactions tax

imposed by the Income Tax Law of Afghanistan.c. The terms "

Indian-tax " and " Afghanistan tax " shall also include any

identical or substantially similar taxes which are imposed hereafter by India

or Afghanistan respectively in addition to or in place of the existing taxes.d. The term "

airlines of India " or " airlines of Afghanistan " means---i.

Airlines

designated by the Government of India or the Government of Afghanistan, as the

case may be, in pursuance of the Agreement dated 26th January, 1952 (as amended

or revised from time to time) between the two Governments relating to air

services; orii.

airlines

which are autliorised by the Government of India or the Government of

Afghanistan, as the case may be, by a general or special arrangement between

the two Governments to operate chartered flights between or beyond their

territories.a.b.c.d.e. The term "

internal traffic " shall mean traffic which originates and terminates

within India or within Afghanistan, as the case may be.f. The term "

operation of aircraft " means a business of transportation by air of

persons, livestock, goods or mail, carried on by the owners or lessors or charterers

of aircraft, including the sale of tickets for such transportation on behalf of

other enterprises and any other activity directly connected with such

transportation."

I have the honour also to propose that this letter and Your Excellency's letter

of reply confirming the foregoing understandings shall be regarded as

constituting an agreement between the two Governments for the avoidance of

double taxation of income of enterprises operating aircraft, which shall enter

into force on the date of Your Excellency's reply and shall remain in force

indefinitely, unless either of the Governments gives notice to the other

Government of its intention to terminate this agreement on or before the

thirtieth day of June in any calendar year after the year 1980. In the event of

such a notice, this agreement shall cease to be effective.a. in India, in respect

of income assessable for the assessment year commencing on the 1st day of April

in the second calendar year following the calendar year in which the notice is

given and the subsequent assessment years; andb. in Afghanistan, in

respect of income assessable for the taxable year commencing on the 1st day of

Hamal corresponding to the 21st day of March in the second calendar year

following the calendar year in which the notice is given and the subsequent

taxable years."I

have further the honour to confirm the foregoing understandings on behalf of

the Government of Afghanistan and to agree that Your Excellency's letter and my

reply thereto shall constitute an agreement between the two Governments as

stated in Your Excellency's above-mentioned letter.I

avail myself of this opportunity to renew to Your Excellency the assurances of

my highest consideration.(Sd.)

Sultan Mahmood Ghazi,President,

Civil Aviation and Tourism Authority,Kabul-Afghanistan.H.E.

Mr. K. R. P. Singh,Ambassador

of India in Afghanistan,Kabul-Afghanistan