Belarus - Legal Draft

Double Taxation

Avoidance AgreementBelarusIncome-Tax Act, 1961:

Notification under section 90: Agreement Between the Government of Republic of

India and the Government of Republic of Belarus for the avoidance of double

taxation and the prevention of fiscal evasion with respect to taxes on incomeNotification No.

G.S.R. 392(E), dtd. 17.7.1998Whereas

the annexed Agreement between the Government of the Republic of India and the

Government of the Republic of Belarus for the avoidance of double taxation and

the prevention of fiscal evasion with respect to taxes on income and on

property (capital) shall enter into force on the Seventeenth day of July, 1998,

in accordance with Article 30 of the said Agreement, thirty days after the

receipt of the later of the notifications by both the Contracting States to

each other of completion of the procedure required by their respective laws for

bringing into force the said Agreement.Now,

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

Act, 1961 (43 of 1961), and section 44A of the Wealth-tax Act, 1957 (27 of

1957), the Central Government hereby directs that all the provisions of the

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

BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE

REPUBLIC OF BELARUS FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF

FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON PROPERTY (CAPITAL).The

Government of the Republic of India and the Government of the Republic of

BelarusDesiring

to conclude an Agreement for the avoidance of double taxation and the

prevention of fiscal evasion with respect to taxes on income and on property

(capital):Have

agreed as follows:Article

1PERSONAL

SCOPEThis

Agreement shall apply to persons who are residents of one or both of the

Contracting States.Article

2TAXES

COVERED1. This Agreement shall

apply to taxes on income and on property (capital) imposed on behalf of a

Contracting State or of its political subdivisions or local authorities,

irrespective of the manner in which they are levied.2. There shall be

regarded as taxes on income and on property (capital) all taxes imposed on

total income, on total property (capital) or on elements of income or of property

(capital) including taxes on gains from the alienation of immovable property or

property other than immovable property and taxes on the total amounts of wages

or salaries paid by enterprises.3. The taxes to which

this Agreement shall apply are in particular:a. In India:i.

the

income-tax including any surcharge thereon; andii.

wealth-tax(hereinafter

referred to as "Indian Tax"); anda.b. In Belarus:i.

the

tax on income and profits of enterprises associations and organisations:ii.

the

income-tax on individuals; andiii.

the

tax on immovable property(hereinafter

referred to as "Belarusian tax").4.

The

Agreement shall apply also to any similar or substantially identical taxes

which are imposed by either Contracting State after the date of signature of

the Agreement in addition to, or in place of, the taxes referred to in

paragraph 3 above. The competent authorities of the Contracting States shall

notify each other of any substantial changes which have been made in their

respective taxation laws.Article

3GENERAL

DEFINITIONS1.

In

this Agreement, unless the context otherwise requiresa. the term

"India" means the territory of India and includes the territorial sea

and airspace above it, as well as any other maritime zone in which India has

sovereign rights, other rights and jurisdictions, according to the Indian law

and in accordance with international law and the U. N. Convention on the law of

the sea;b. the term

"Belarus" means the Republic of Belarus and when used in a

geographical sense, means the territory over which the Republic of Belarus

exercises under the laws of the Republic of Belarus and in accordance with

international law sovereign rights and jurisdiction;c. the terms "a

Contracting State" and "the other Contracting State" means as

the context requires, India or the Republic of Belarus;d. the term

"tax" means Indian tax or Belarusian tax, as the context requires,

but shall not include any amount which is payable in respect of any default or

omission in relation to the taxes to which this Agreement applies or which

represents a penalty imposed relating to those taxes;e. the term

"person" includes an individual, a company, a body of persons and any

other entity which is treated as a taxable unit under the taxation laws in

force in the respective Contracting States;f. the term "company"

means:i.

in

India, any body corporate or other entity which is treated as a company or body

corporate under the taxation laws in force;ii.

in

Belarus, any legal person or any entity which is treated as a legal person for

tax purposes;a.b.c.d.e.f.g. the terms

"enterprise of a Contracting State" and "enterprise of the other

Contracting State" mean respectively an enterprise carried on by a

resident of a Contracting State and an enterprise carried on by a resident of

the other Contracting State;h. the term "competent

authority" means:i.

in

the case of India, the Central Government in the Ministry of Finance

(Department of Revenue) or their authorised representative;ii.

in

the case of Belarus, the State Tax Committee or its authorised representative;a.b.c.d.e.f.g.h.i.

the

term "national" means:i.

any

individual possessing the nationality of a Contracting State;ii.

any

legal person, partnership or association deriving its status as such from the

laws in force in a Contracting State;i.a.b.c.d.e.f.g.h.i.j. the term

"international traffic" means any transport by a ship or aircraft

operated b-,7 an enterprise of a Contracting State, except when the ship or

aircraft is operated solely between places in the other Contracting State;k. the term "fiscal

year" means:i. in the case of India,

the "previous year" as defined under section 3 of the Income-tax Act,

1961;ii. in the case of

Belarus, the calendar year from lst day of January to 31st day of December of

the year.1.2. As regards the

application of the Agreement by a Contracting State, any term not defined

therein shall, unless the context otherwise requires, have the meaning which it

has under the laws of that State concerning the taxes to which the Agreement

applies.Article

4RESIDENT1. For the purposes of

this Agreement, the term "resident of a Contracting State" means any

person who, under the laws of that State, is liable to tax therein by reason of

his domicile, place of incorporation, residence, place of management or any

other criterion of a similar nature. However, this term does not include any

person who is liable to tax in that State only in respect of income from

sources in that State or property situated therein.2. Where by reason of

the provisions of paragraph 1 an individual is a resident of both Contracting

States, then his status shall be determined as follows:a. he shall be deemed to

be a resident of the State in which he has a permanent home available to him;

if he has a permanent home available to him in both States, he shall be deemed

to be a resident of the State with which his personal and economic relations

are closer (centre of vital interests);b. if the State in which

he has his centre of vital interests cannot be determined or if he does not

have a permanent home available to him in either Contracting State, he shall be

deemed to be a resident of the Contracting State in which he has an habitual

abode;c. if he has an habitual

abode in both States or in neither of them, he shall be deemed to be a resident

of the State of which he is a national;d. if each State

considers him as its own national or if he is not a national of either of them,

the competent authorities of the Contracting States shall settle the question

by mutual agreement.1.2.3. Where by reason of

the provisions of paragraph 1, a person other than an individual is a resident

of both Contracting States, then it shall be deemed to be a resident of the

State in which its place of effective management is situated. If the State in

which its place of effective management is situated cannot be determined, then

the competent authorities of the Contracting States shall settle the question

by mutual agreement.Article

5PERMANENT

ESTABLISHMENT1. For the purposes of

this Agreement, the term "permanent establishment" means a fixed

place of business through which the business of an enterprise is wholly or

partly carried on.2. The term

"permanent establishment" includes especially:a. a place of

management;b. a branch;c. an office;d. a factory;e. a workshop;f. a mine, an oil or gas

well, a quarry or any other place of extraction of natural resources;g. a warehouse in

relation to a person providing storage facilities for others;h. a farm, plantation or

other place where agriculture, forestry, plantation, or related activities are

carried on;i. a sales outlet;j. an installation or

structure used for the exploration or exploitation of natural resourcesk. a building site or

construction or assembly project or supervisory activities in connection

therewith only if such site, project or activity lasts for more than six

months.3. Notwithstanding the

preceding provisions of this Article, the term permanent establishment"

shall be deemed not to include:a. the use Of facilities

solely for the purposes Of Storage, display or delivery of goods or merchandise

belonging to the enterprise;b. the maintenance of a

stock of goods or merchandise belonging to the enterprise solely for the

purpose of storage or display;c. the maintenance of a

stock of goods or merchandise belonging to the enterprise solely for the

purpose of processing by another enterprise;d. the maintenance of a

fixed place of business solely for the purpose of purchasing goods or

merchandise, or of collecting information, for the enterprise;e. the maintenance of a

fixed place of business solely for the purpose of carrying on, for the

enterprise, any other activity of a preparatory or auxiliary character;f. the maintenance of a

fixed place of business solely for any combination of activities mentioned in

sub-paragraphs (a) to (e), provided that the overall activity of the fixed

place of business resulting from this combination is of a preparatory or

auxiliary character.However,

the provisions of sub-paragraphs (a) to (f) shall not be applicable where the

enterprise maintains any other fixed place of business in the other Contracting

State for any purposes other than the purposes specified in the said sub-paragraphs.4. Notwithstanding the

provisions of paragraphs 1 and 2, where a person-other than an agent of an

independent status to whom paragraph 5 applies-is acting on behalf of an

enterprise of the other Contracting State, that enterprise shall be deemed to

have a permanent establishment in the first-mentioned Contracting State in

respect of any activities which that person undertakes for the enterprise, if

such a person:a. has and habitually

exercises in that State an authority to conclude contracts in the name of the

enterprise, unless the activities of such person are limited to those mentioned

in paragraph 3 which, if exercised through a fixed place of business, would not

make this fixed place of business a permanent establishment under the

provisions of that paragraph; orb. has no such

authority, but habitually maintains in the first-mentioned State a stock of

goods or merchandise from which he regularly delivers goods or merchandise on

behalf of the enterprise.5. An enterprise of a

Contracting State shall not be deemed to have a permanent establishment in the

other Contracting State merely because it carries on business in that other

State through a broker, a commission agent or any other agent of an independent

status, provided that such persons are acting in the ordinary course of their

business. However, when the activities of such an agent are devoted wholly or

almost wholly on behalf of that enterprise itself or on behalf of that

enterprise and other enterprises controlling, controlled by, or subject to the

same common control, as that enterprise, he will not be considered an agent of

an independent status within the meaning of this paragraph.6. The fact that a

company which is a resident of a Contracting State controls or is controlled by

a company which is a resident of the other Contracting State or which carries

on business in that other Contracting State (whether through a permanent

establishment or otherwise), shall not of itself constitute either company a

permanent establishment of the other.7. An enterprise shall

be deemed to have a permanent establishment in a Contracting State and to carry

on business through that permanent establishment if it provides services or

facilities in connection with, or supplies plant and machinery on hire used for

or to be used in the prospecting for, or extraction or exploitation of mineral

oils in that State.8. Notwithstanding the

preceding provisions of this Article, an insurance enterprise of a Contracting

State shall, except in regard to re-insurance, be deemed to have a permanent

establishment in the other Contracting State if it collects premiums in the

territory of that other State or insures risks situated therein through a

person other than an agent of an independent status to whom paragraph 5

applies.Article

6INCOME

FROM IMMOVABLE PROPERTY1. Income derived by a

resident of a Contracting State from immovable property (including income from

agriculture or forestry) situated in the other Contracting State may be taxed

in that other State.2. The term

"immovable property" shall have the meaning which it has under the

law of the Contracting State in which the property in question is situated.

Ships, boats, motor vehicles and aircraft shall not be regarded as immovable

property.3. The provisions of

paragraph 1 shall apply to income derived from the direct use, letting or use

in any other form of immovable property.4. The provisions of

paragraphs 1 and 3 shall apply to income from immovable property of an

enterprise and also to income from immovable property used for the performance

of independent personal services.Article

7BUSINESS

PROFITS1. The profits of an

enterprise of a Contracting State shall be taxable only in that State unless

the enterprise carries on business in the other Contracting State through a

permanent establishment situated therein. If the enterprise carries on business

as aforesaid, the profits of the enterprise may also be taxed in the other

State but only so much of them as is attributable to:a. that permanent

establishment;b. sales in that other

State of goods or merchandise of the same or similar kind as those sold through

that permanent establishment; orc. other business

activities carried on in that other State of the same or similar kind as those

effected through that permanent establishment.2. Subject to the

provisions of paragraph 3, where an enterprise of a Contracting State carries

on business in the other Contracting State through a permanent establishment

situated therein, there shall in each Contracting State be attributed to that

permanent establishment the profits which it might make if it were a separate

independent enterprise engaged in the same or similar activities under the same

or similar conditions and acting wholly independently with the enterprise of

which it is a permanent establishment.3. In determining the

profits of a permanent establishment, there shall be allowed as deduction

expenses which are incurred for the purposes of the permanent establishment,

including executive and general administrative expenses so incurred, whether in

the State in which the permanent establishment is situated or elsewhere, in

accordance with the provisions of and subject to the limitations of the

taxation laws of that State.4. No profits shall be

attributed to a permanent establishment by reason of the mere purchase of goods

or merchandise by that permanent establishment for the enterprise.5. For the purpose of

the preceding paragraphs, the profits to be attributed to the permanent

establishment shall be determined by the same method year by year unless there

are good and sufficient reasons to the contrary.6. Where the profits

include items of income which are dealt with separately in other Articles of

this Agreement, then the provisions of those Articles shall not be affected by

the provisions of this Article.Article

8INTERNATIONAL

TRAFFIC1. Profits of an

enterprise of a Contracting State from the operation of ships or aircraft in

international traffic, as the case may be, shall be taxable only in that State.2. The provisions Of

paragraph 1 shall also apply to profits from the participation in a pool, a

joint business or an international operating agency,3. For the purposes of

this article, interest on funds connected with the operation of ships or

aircraft in international traffic shall be regarded as profits derived from the

operation of such ships or aircraft, and the provisions of Article 11 shall not

apply in relation to such interest.4. For the purposes of

this Article, profits from the operation of ships or aircraft in international

traffic shall mean profits derived by an enterprise from the transportation by

sea or air respectively, of passengers, mail, livestock, goods or merchandise

carried on by the owners or lessees or charterers of ships or aircraft. This

will also include:a. the sale of tickets

for such transportation on behalf of other enterprises;b. the use, maintenance,

or rental of containers (including trailers, barges, and related equipment for

the transportation of containers) used in connection with the operation of

ships or aircraft in international traffic;c. the rental of ships

or aircraft incidental to the operation of ships or aircraft in international

traffic; andd. other activity

directly connected with operation of ships or aircraft in international

traffic.Article

9ASSOCIATED

ENTERPRISESWhere,a. an enterprise of a Contracting

State participates directly or indirectly in the management, control or capital

of an enterprise of the other Contracting State, orb. the same persons

participate directly or indirectly in the management, control or capital of an

enterprise of a Contracting State and an enterprise of the other Contracting

State,and

in either case conditions are made or imposed between the two enterprises in

their commercial or financial relations which differ from those which would be

made between independent enterprises, then any profits which would have accrued

to one of the enterprises, but, by reason of those conditions, have not so

accrued, may be included in the profits of that enterprise and taxed

accordingly.Article

10DIVIDENDS1. Dividends paid by a

company which is a resident of a Contracting State to a resident of the other

Contracting State may be taxed in that other Contracting State.2. However, such

dividends may also be taxed in the Contracting State of which the company

paying the dividends is a resident and according to the laws of that State, but

if the recipient is the beneficial owner of the dividends the tax so charged

shall not exceed:a. 10 per cent. of the

gross amount of the dividends if the beneficial owner is a company which holds

directly at least 25 per cent. of the shares of the company paying the

dividends;b. 15 per cent. of the

gross amount of the dividends in all other cases.This

paragraph shall not affect the taxation of the company in respect of the

profits out of which the dividends are paid.1.2.3. The term

"dividends" as used in this article means income from shares or other

rights, not being debt-claims, participating in profits, as well as income from

other rights which is subjected to the same taxation treatment as income from

shares under the laws of the Contracting State of which the company making the

distribution is a resident.4. The provisions of

paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends,

being a resident of a Contracting State, carries on business in the other

Contracting State of which the company paying the dividends is a resident,

through a permanent establishment situated therein, or performs in that other

State independent personal services from a fixed base situated therein, and the

holding, in respect of which, the dividends are paid, is effectively connected

with such permanent establishment or fixed base. In such case, the provisions

of Article 7 or 14, as the case may be, shall apply.5. Where a company which

is a resident of a Contracting State derives profits or income from the other

Contracting State, that other State may not impose any tax on the dividends

paid by the company, except in so far as such dividends are paid to a resident

of that other State or in so far as the holding in respect of which the

dividends are paid is effectively connected with a permanent establishment or a

fixed base situated in that other State, nor subject the company's

undistributed profits to a tax on the company's undistributed profits, even if

the dividends paid or the undistributed profits consist wholly or partly of

profits or income arising in that other State.Article

11INTEREST1. Interest arising in a

Contracting State and paid to a resident of the other Contracting State may be

taxed in that other State.2. However, such

interest may also be taxed in the Contracting State in which it arises and

according to the laws of that State, but if the recipient is the beneficial

owner of the interest the tax so charged shall not exceed 10 per cent. of the

gross amount of the interest.3. Notwithstanding the

provisions of paragraph 2,-a. interest arising in a

Contracting State shall be exempt from tax in that State provided it is derived

and beneficially owned by:i.

the

Government, a political sub-division or a local authority of the other

Contracting State; orii.

the

Central Bank of the other Contracting State or any other bank or Governmental

financial institutions that may be mutually agreed upon between the two

Contracting States.a.b. interest arising in a

Contracting State shall be exempt from tax in that Contracting State to the

extent approved by the Government of that State if it is derived and

beneficially owned by any person, other than a person referred to in

sub-paragraph (a), who is a resident of the other Contracting State, provided

that the transaction giving rise to the debt-claim has been approved in this

regard by the Government of the first-mentioned Contracting State.4. The term

"interest" as used in this Article means income from debt claims of

every kind, whether or not secured by mortgage and whether or not carrying a

right to participate in the debtor's profits, and in particular, income from

Government securities and income from bonds or debentures, including premiums

and prizes attaching to such securities, bonds or debentures. Penalty charges

for late payment shall not be regarded as interest for the purpose of this

Article.5. The provisions of

paragraphs 1 and 2 shall not apply if the beneficial owner of the interest,

being a resident of a Contracting State, carries on business in the other

Contracting State in which interest arises, through a permanent establishment

situated therein, or performs in that other State independent personal services

from a fixed base situated therein, and the debt-claim in respect of which the

interest is paid is effectively connected with such permanent establishment or

fixed base. In such a case, the provisions of Article 7 or 14, as the case may

be, shall apply.6. Interest shall be

deemed to arise in a Contracting State when the payer is that State itself, its

political sub-division or a local authority or a resident of that State. Where,

however, the person paying the interest whether he is a resident of a

Contracting State or not, has in a Contracting State a permanent establishment

or a fixed base in connection with which the indebtedness on which the interest

is paid was incurred, and such interest is borne by such permanent

establishment or fixed base, then such interest shall be deemed to arise in the

Contracting State in which the permanent establishment or fixed base is

situated.7. Where by reason of a

special relationship between the payer and the beneficial owner or between both

of them and some other person, the amount of the interest having regard to the

debt-claim for which it is paid, exceeds the amount which would have been

agreed upon by the payer and the beneficial owner in the absence of such

relationship, the provisions of this Article shall apply only to the

last-mentioned amount. In such a case, the excess part of the payments shall

remain taxable according to the laws of each Contracting State, due regard

being had to the other provisions of this Agreement.Article

12ROYALTIES

AND FEES FOR TECHNICAL SERVICES1. Royalties or fees for

technical services arising in a Contracting State and paid to a resident of the

other Contracting State may be taxed in that other State.2. However, such

royalties or fees for technical services may also be taxed in the Contracting

State in which they arise and according to the laws of that State, but if the

recipient is the beneficial owner of the royalties or fees for technical

services, the tax so charged shall not exceed 15 per cent. of the gross amount

of the royalties or fees for technical services.3. The term

"royalties" as used in this Article means payment of any kind

received as a consideration for the use of, or the right to use, any copyright

of literary, artistic or scientific work, including cinematographic films or

films or tapes for radio or television broadcasting, any patent, trade mark,

design or model, plan, secret formula or process, or for the use of, or the

right to use, industrial, commercial or scientific equipment, or for

information concerning industrial, commercial or scientific experience.4. The term "fees

for technical services" as used in this Article means payment of any kind

in consideration for the rendering of any managerial, technical or consultancy

services including the provision of services by technical or other personnel

but does not include payments for services mentioned in Articles 14 and 15 of

this Agreement.5. The provisions of

paragraphs 1, and 2 shall not apply if the beneficial owner of the royalties or

fees for technical services being a resident of a Contracting State, carries on

business in the other Contracting State in which the royalties or fees for

technical services arise, through a permanent establishment situated therein,

or performs in that other State independent personal services from a fixed base

situated therein, and the right, property or contract in respect of which the

royalties or fees for technical services are paid is effectively connected with

such permanent establishment or fixed base. In such a case, the provisions of

Article 7 or Article 14, as the case may be, shall apply.6. Royalties or fees for

technical services shall be deemed to arise in a Contracting State when the

payer is that State itself, a political sub-division, a local authority or a

resident of that State. Where, however, the person paying the royalties or fees

for technical services, whether he is a resident of a Contracting State or not,

has in a Contracting State a permanent establishment or a fixed base in

connection with which the liability to pay the royalties or fees for technical

services was incurred, and such royalties or fees for technical services are.

borne by such permanent establishment or fixed base, then such royalties or

fees for technical services shall be deemed to arise in the State in which the

permanent establishment or fixed base is situated.7. Where by reason of a

special relationship between the payer and the beneficial owner or between both

of them and some other person, the amount of royalties or fees for technical

services, having regard to the use, right or information for which they are

paid, exceeds the amount which would have been agreed upon in the absence of

such relationship, the provisions of this Article shall apply only to the

last-mentioned amount. In such a case, the excess part of the payments shall

remain taxable according to the laws of each Contracting State, due regard

being had to the other provisions of this Agreement.Article

13CAPITAL

GAINS (GAINS FROM ALIENATION OF PROPERTY)1. Gains derived by a

resident of a Contracting State from the alienation of immovable property

referred to in Article 6 and situated in the other Contracting State may also

be taxed in that other Contracting State.2. Gains from the

alienation of property other than immovable property forming part of the

business property of a permanent establishment which an enterprise of a

Contracting State has in the other Contracting State or of property other than

immovable property pertaining to a fixed base available to a resident of a

Contracting State in the other Contracting State for the purpose of performing

independent personal services, including such gains from the alienation of such

a permanent establishment (alone or with the whole enterprise) or of such fixed

base, may be taxed in that other State.3. Gains from the

alienation of ships or aircraft operated in international traffic or property

other than immovable property pertaining to the operation of such ships or

aircraft, shall be taxable only in the Contracting State of which the alienator

is a resident.4. Gains from the

alienation of shares of the capital stock of a company the property of which

consists directly or indirectly principally of immovable property situated in a

Contracting State may be taxed in that State.5. Gains from the

alienation of shares other than those mentioned in paragraph 4 in a company

which is a resident of a Contracting State may be taxed in that State.6. Gains from the

alienation of any property other than that referred to in paragraphs 1, 2, 3, 4

and 5 shall be taxable only in the Contracting State of which the alienator is

a resident.Article

14INDEPENDENT

PERSONAL SERVICES1. Income derived by a

resident of a Contracting State from the performance of professional services

or other independent activities of a similar character shall be taxable only in

that State except in the following circumstances when such income may also be

taxed in the other Contracting State:a. if he has a fixed

base regularly available to him in the other Contracting State for the purpose

of performing his activities, in that case, only so much of the income as is

attributable to that fixed base may be taxed in that other State; orb. if his stay in the

other Contracting State is for a period or periods amounting to or exceeding in

the aggregate 183 days in a period of twelve months; in that case, only so much

of the income as is derived from his activities performed in that other State

may be taxed in that other State1.2. The term

"professional services" includes especially independent scientific,

literary, artistic, educational or teaching activities as well as independent

activities of physicians, lawyers, engineers, architects, dentists and

accountants.Article

15DEPENDENT

PERSONAL SERVICES1.

Subject

to the provisions of Articles 17, 18, 19, 20 and 21 salaries, wages and other

similar remuneration derived by a resident of a Contracting State in respect of

an employment shall be taxable only in that State unless the employment is

exercised in the other Contracting State.If

the employment is so exercised, such remuneration as is derived therefrom may

be taxed in that other State.2. Notwithstanding the

provisions of paragraph 1, remuneration derived by a resident of a Contracting

State in respect of an employment exercised in the other Contracting State

shall be taxable only in the first mentioned State if:a. the recipient is present

in the other Contracting State for a period or periods not exceeding in the

aggregate 183 days in any period of twelve months; andb. the remuneration is

paid by, or on behalf of, an employer who is not a resident of the other State;

andc. the remuneration is

not borne by a permanent establishment or a fixed base which the employer has

in the other contracting State.3. Notwithstanding the

preceding provisions of this Article, the remuneration derived in respect of an

employment exercised aboard a ship or aircraft operated in international

traffic by the enterprise of a Contracting State may be taxed in that State.Article

16DIRECTORS'

FEESDirectors'

fees and other similar payments derived by a resident of a Contracting State in

his capacity as a member of the board of directors of a company which is a

resident of the other Contracting State may be taxed in that other State.Article

17ARTISTS

AND SPORTSPERSONS1. Notwithstanding the

provisions of Articles 14 and 15, income derived by a resident of a Contracting

State as an entertainer, such as a theatre, motion picture, radio or television

artiste, or a musician, or as a sportsperson from his personal activities as

such exercised in the other Contracting State may be taxed in that other State.2. Where income in respect

of personal activities exercised by an entertainer or a sportsperson in his

capacity as such accrues not to the entertainer or sportsperson himself but to

another person, such income may, notwithstanding the provisions of Articles 7,

14 and 15 be taxed in the Contracting State in which the activities of the

entertainer or sportsperson are exercised.3. The provisions of

paragraphs 1 and 2, shall not apply to income from activities performed in a

Contracting State by entertainers or sportspersons if the visit to that State

is supported wholly by public funds of one or both of the Contracting States of

political sub-divisions or local authorities thereof or the activity is

exercised within the framework of cultural or sports co-operation agreement

between the Contracting States. In such a case, the income is taxable only in

the Contracting State of which the entertainer or sportsperson is a resident.Article

18GOVERNMENT

SERVICE1.a. Remuneration, other

than pension, paid by a Contracting State or a political sub-division or a

local authority thereof to an individual in respect of services rendered to

that State or sub-division or authority shall be taxable only in that State.b. However, such

remuneration shall be taxable only in the other Contracting State if the

services are rendered in that other State and the individual is a resident of

that State who:i. is a national of that

State; orii. did not become a

resident of that State solely for the purpose of rendering the services.1.2.a. Any pension paid by,

or out of funds created by, a Contracting State or a political sub-division or

a local authority thereof, to an individual in respect of services rendered to

that State or sub-division or local authority thereof shall be taxed only in

that State;b. However, such pension

shall be taxable only in the other Contracting State if the individual is a

resident of, and a national of, that State.2.3. The provisions of

Articles 15, 16 and 19 shall apply to remuneration and pensions in respect of

services rendered in connection with a business carried on by a Contracting

State or a political sub-division or a local authority thereof.Article

19NON-GOVERNMENT

PENSIONS AND ANNUITIES1. Any pension, other

than a pension referred to in Article 18, or any annuity derived by a resident

of a Contracting State from sources within the other Contracting State shall be

taxable only in the first-mentioned Contracting State.2. The term

"pension" means a periodic payment made in consideration of past

services or by way of compensation for injuries received in the course of

performance of services.3. The term

"annuity" means a stated sum payable periodically at stated times

during life or during a specified or ascertainable period of time, under an

obligation to make payments in return for adequate and full consideration in

money or money's worth.Article

2STUDENTS

AND APPRENTICES1. A student or business

apprentice who is or was a resident of one of the Contracting States

immediately before visiting the other Contracting State and who is present in

that other State solely for the purpose of his education or training, shall be

exempt from tax in that other State on:a. payments made to him

by persons residing outside that other State for the purposes of his

maintenance, education or training; andb. remuneration from

employment in that other State for an amount not exceeding the amount which is

exempt from tax under the laws of the other Contracting State for any fiscal

year; provided that such employment is directly related to his studies or is

undertaken for the maintenance.2. The benefits of this

article shall extend only for such period of time as may be reasonable or

customarily required to complete the education or training undertaken, but in

no event shall any individual have the benefits of this article, for more than

five consecutive years from the date of his first arrival in that other

Contracting State.Article

21PROFESSORS,

TEACHERS AND RESEARCH SCHOLARS1. A professor or

teacher who is or was a resident of one of the Contracting States immediately

before visiting the other Contracting State for the purpose of teaching or

engaging in research, or both, at a university, college, or other similar

institution in that Contracting State shall be exempt from tax in that other

State on any remuneration for such teaching or research for a period not

exceeding two years from the date of his arrival in that other State.2. This article shall

not apply to income from research if such research is undertaken primarily for

the private benefit of a specific person or persons.3. For the purposes of

this article and article 20,. an individual shall be deemed to be a resident of

the Contracting State if he is resident in that Contracting State in the fiscal

year' In which he visits the other Contracting State or in the immediately fiscal

year.Article

22OTHER

INCOME1. Items of income of a

resident of a Contracting State, wherever arising, not dealt with in the

foregoing Articles of this Agreement shall be taxable only in that State.2. The provisions of

paragraph 1 shall not apply to income other than income from immovable property

as defined in paragraph 2 of Article 6, if the recipient of such income, being

a resident of a Contracting 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 therein,

and the right of property in respect of which the income is paid is effectively

connected with such permanent establishment or fixed base. In such a case, the

provisions of Article 7 or Article 14, as the case may be, shall apply.3. Notwithstanding the

provisions of paragraphs 1 and 2, items of income of a resident of a

Contracting State not dealt with in the foregoing Articles of this Agreement,

and arising in the other Contracting State may be taxed in that other State.Article

23PROPERTY

(CAPITAL)1. Property (capital)

represented by immovable property referred to in Article 6, owned by a resident

of a Contracting State and situated in the other Contracting State, may be

taxed in that other State.2. Property (capital)

represented by property other than immovable property forming part of the

business property of a permanent establishment which an enterprise of a

Contracting State has in the other Contracting State or by property other than

immovable property pertaining to a fixed base available to a resident of a

Contracting State in the other Contracting State for the purpose of performing

independent personal services, may be taxed in that other State.3. Property (capital)

represented by ships and aircraft operated in, international ' traffic or by

boats engaged in inland waterways transport and by property other than

immovable property pertaining to the operation of such ships, boats and

aircraft shall be taxable only in the Contracting State of which the owner of

such ships, boats, aircraft or property is a resident.4. All other elements of

property (capital) of a resident of a Contracting State shall be taxed only in

that State.Article

24ELIMINATION

OF DOUBLE TAXATION1. The laws in force in

either of the Contracting States shall continue to govern the taxation of

income and property (capital) on the respective Contracting State except where

express provision to the contrary is made in this Agreement.2. In the case of India,

double taxation shall be eliminated as follows:Where

a resident of India derives income or owns capital which, in accordance with

the provisions of this Agreement, may be taxed in the Republic of Belarus,

India shall allow as a deduction from the tax on the income of that resident an

amount equal to the income-tax paid in the Republic of Belarus whether directly

or by deduction; and as a deduction from the tax on the capital of that

resident an amount equal to the property (capital) tax paid in the Republic of

Belarus. Such deduction in either case shall not, however, exceed that part of

the income-tax or capital tax as computed before the deduction is given which

is attributable, as the case may be, to the income or the capital which may be taxed

in the Republic of Belarus.3.

In

the case of the Republic of Belarus, double taxation shall be eliminated as

follows:Where

a resident of the Republic of Belarus derives income which, in accordance with

the provisions of this Agreement, may be taxed in India, the Republic of

Belarus shall allow as a deduction from the tax on the income of that resident,

an amount equal to the income-tax paid in India; and as a deduction from tax on

the property (capital) of that resident, an amount equal to the capital tax

paid in India. Such deduction shall not, however, exceed that part of the

income-tax or property (capital) tax, as computed before the deduction is

given, which is attributable, as the case may be, to the income or the property

(capital) which may be taxed in India.4. The tax payable in

the Contracting State mentioned in paragraphs 2 and 3 of this Article shall be

deemed to include the tax which would have been payable but for the tax

incentives granted under the laws of the Contracting State and which are designed

to promote economic development.5. Income which in

accordance with the provisions of this Agreement, is not to one subjected to

tax in a Contracting State, may be taken into account for calculating the rate

of tax to be imposed in that Contracting State.Article

25NON-DISCRIMINATION1. Nationals of a

Contracting State shall not be subjected in the other Contracting State, to

other or more burdensome taxation or any requirement connected therewith, than

the taxation and connected requirements to which nationals of that other State

in the same circumstances are or may be subjected.2. The taxation on a

permanent establishment which an enterprise of a Contracting State has in the

other Contracting State shall not be less favourably levied in that other State

than the taxation levied on enterprises of that other State carrying on the

same activities. This provision shall not be construed as preventing a

Contracting State from charging the profits of a permanent establishment which

an enterprise of the other Contracting State, has in the first-mentioned State

at a rate of tax which is higher than that imposed on the profits of a similar

enterprise of the first-mentioned Contracting State, nor as being in conflict

with the provisions of paragraph 3 of Article 7 of this Agreement.3. Nothing contained in

this Article shall be construed as obliging a Contracting State to grant to

persons not resident in that State any personal allowances, reliefs, reductions

and deductions for taxation purposes which are by law available only to persons

who are so resident.4. Enterprises of a

Contracting State the capital of which is wholly or partly owned or controlled,

directly or indirectly, by one or more residents of the other Contracting

State, shall not be subjected in the first mentioned State to any taxation or

any requirement connected therewith which is other or more burdensome than the

taxation and connected requirements to which other similar enterprises of the

first-mentioned State may be subjected in the same circumstances and under the

same conditions.5. In this Article, the

term "taxation" means taxes which are the subject of this Agreement.6. Except where the

provisions of Article 9, paragraph 7 of Article 11 of paragraph 7 of Article

12, apply, interest, royalties and other disbursements paid by an enterprise of

a Contracting State to a resident of the other contracting State shall, for the

purpose of determining the taxation profits of such enterprises, be deductible

under the same conditions as if they had been paid to a resident of the first

mentioned State. Similarly, any debts of an enterprise of a Contracting State

to a resident of the other Contracting State shall, for the purpose of

determining the taxation capital of such enterprise, be deductible under the

same conditions as if they had been contracted to a resident of the

first-mentioned State.Article

26MUTUAL

AGREEMENT PROCEDURE1. 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

Agreement, he may, irrespective of the remedies provided by the domestic laws

of those Contracting States, present his case to the competent authority of the

Contracting State of which he is a resident, or of his case comes under

paragraph 1 of Article 25, to that of the Contracting State of which he is a

national. The case must be presented within three years from the date of the

first notification of the action resulting in taxation not in accordance with

the provisions of this Agreement.2. The competent

authority shall endeavour, if the objection appears to it to be justified and

if it is not itself able to arrive at a satisfactory solution, to resolve the

case by mutual agreement with the competent authority of the other Contracting

State for the avoidance of taxation which is not in accordance with the

Agreement. Any agreement reached shall be implemented notwithstanding any time

limits in the domestic law of the Contracting States.3. The competent

authorities of the Contracting States shall endeavour to resolve by mutual

agreement any difficulties or doubts arising as to the interpretation or

application of the Agreement. They may also consult together for the

elimination of double taxation in cases not provided for in the Agreement.4. The competent

authorities of the Contracting States may communicate with each other directly

for the purpose of reaching an agreement in the sense of the preceding

paragraphs. When it seems advisable in order to reach an agreement to have an

oral exchange of opinions, such exchange may take place through a Commission

consisting of representatives of the competent authorities of the Contracting

States.Article

27EXCHANGE

OF INFORMATION1. The competent

authorities of the Contracting States shall exchange such information

(including domestic) as is necessary for carrying out the provisions of this

Agreement or of the domestic laws of the Contracting States concerning taxes

covered by the Agreement, in so far as the taxation thereunder is not contrary

to the Agreement. The exchange of information is not restricted by Article 1.

Any information received by a Contracting State shall be treated as secret in

the same manner as information obtained under the domestic laws of that State

and shall be disclosed only to persons or authorities (including courts and

administrative bodies) involved in the assessment, or collection of, the

enforcement or prosecution in respect of, or the determination of appeals in

relation to, the taxes covered by the Agreement. Such persons or authorities

shall use the information only for such purposes. They may disclose the

information in public court proceedings or in judicial decisions. The competent

authorities shall, through consultation, develop appropriate conditions, methods

and techniques, the list of information and documents concerning the matters in

respect of which such exchange of information shall be made, including, where

appropriate, exchange of information regarding tax avoidance. The exchange of

information or documents shall be on request of the competent authorities of

the Contracting States.2. In no case shall the

provisions of paragraph 1 be construed as to impose on a Contracting State the

obligation:a. to carry out

administrative measures at variance with the law or administrative practice of

that or the other Contracting State;b. to supply information

or domestic which are not obtainable under the laws or in the normal course of

the administration of that or of the other Contracting State;c. (to supply

information or documents which would disclose any trade, business, industrial,

commercial or professional secret, or trade process, or information, the

disclosure of which would be contrary to public policy.Article

28ASSISTANCE

IN COLLECTION1. The Contracting

States undertake to lend assistance and support to each other, in the

collection of the taxes to which this Agreement relates, in the cases where the

taxes are definitely due according to the laws of the State making the request.2. In the case of a

request for enforcement of collection, tax claims of either of the Contracting

States which have been finally determined will be accepted for enforcement by

the other Contracting State to,-which the request is made and collected in that

State in accordance with the laws applicable to the enforcement and collection

of its taxes.3. In the case of Indian

tax, the request will be sent by the Central Board of Direct Taxes, Department

of Revenue to the State Tax Committee of the Republic of Belarus and will be

accompanied by such certificate as is required by the laws of India to

establish that the taxes have been finally determined and are due from the

taxpayer.4. In the case of

Belarusian tax, the request will be sent by the State Tax Committee of the

Republic of Belarus to the Central Board of Direct Taxes, Department of

Revenue, in India and will be accompanied by such certificate as is required by

the laws of the Republic of Belarus to establish that the taxes have been

finally determined and are due from the taxpayer.5. Where that tax claim

has not become final by reason of its being subject to appeal or any other

proceeding, a Contracting State may, in order to protect its revenues, request

the other Contracting State to take such interim measures in this behalf as are

lawful under the laws of that other Contracting State.6. A request for

assistance in collection of taxes due from a taxpayer shall be made only if

adequate assets of that taxpayer are not available for recovering the taxes

from him in the Contracting State making the request.7. The Contracting State

in which tax is recovered in pursuance of paragraphs 1, 2 and 5 of this Article

shall immediately thereafter remit the amount so recovered to the Contracting

State which made the request but it shall be entitled to reimbursement of

actual costs, if any, incurred in the course of rendering assistance to the

extent mutually agreed between the competent authorities of the Contracting

States.Article

29DIPLOMATIC

AND CONSULAR OFFICIALSNothing

in this Agreement shall affect the fiscal privileges of diplomatic or consular

officials under the general rules of international law or under the provisions

of special agreements.Article

30ENTRY

INTO FORCE1. The Contracting

States shall notify each other in writing, through diplomatic channels, the

completion of the procedure required by the respective laws for the entry into

force of this Agreement.2. This Agreement shall

enter into force thirty days after the receipt of the later of the

notifications referred to in paragraph 1 of this Article.3. The provisions of

this Agreement shall have effect:a. In India: