Government Of Yemen Arab Republic - Legal Draft

AGREEMENT

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

ARAB REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM

INTERNATIONAL AIR TRANSPORT(Notification

No. 7084 F. No. 50114183-FTD dt. 1-1-1987)G.S.R.

2(E).---Whereas the annexed Agreement between the Government of the Republic of

India and the Government of Yemen Arab Republic for the avoidance of double

taxation of income derived from International air transport has entered into

force on 30-12-1986, the date of the signature thereon by the Contracting

States, as required by Article 5 of 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 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.ANNEXUREAGREEMENT

BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIAANDTHE

GOVERNMENT OF YEMEN ARAB REPUBLICFORTHE

AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR TRANSPORT

THE GOVERNMENT OF THE REPUBLIC OF INDIAANDTHE

GOVERNMENT OF YEMEN ARAB REPUBLIC DESIRING TO CONCLUDE AN AGREEMENT FOR THE

AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR TRANSPORT

HAVE AGREED AS FOLLOWSARTICLE

1Taxes

Covered1. The existing taxes to

which this Agreement shall apply are:a. in the case of Yemen

Arab Republic, the income tax including surcharge thereon imposed under the Law

No.: 11-1973 (hereinafter referred to as "Yemeni Tax");b. in the case of India:i.

the

income tax including any surcharge thereon imposed under the Income-tax Act,

1961 (43 of 1961),ii.

the

surtax imposed under the Companies (Profits) Surtax Act, 1964 (7 of 1964).

(herein after referred to as "Indian Tax").2. This Agreement shall

also apply to any identical or substantially similar taxes which are imposed

after the date of signature of this Agreement in addition to or in place of the

taxes referred to in paragraph 1 of this Article. The competent authorities of

the Contracting States shall notify each other of any substantial changes which

are made in their respective taxation laws.ARTICLE

2Definitions1. In this Agreement,

unless the context otherwise requires:a. the term 'a

Contracting State' and 'the other Contracting State' mean "Yemen Arab

Republic" or "India", as the context requiresb. the term 'tax' means

'Yemeni tax' or 'Indian tax' as the context requires;c. the term 'enterprise

of a Contracting State' means an airline designated by each Contracting State;d. the term

'international air traffic' means any transport by an aircraft operated by an

enterprise of a contracting State, except when the aircraft is operated solely

between places in the other Contracting State;e. the expression

'operation of aircraft' means the business of carriage by air of passengers,

livestock, goods or mail carried on by the owners of lessees or characters of

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

other #enterprises, the incidental lease of aircraft and any other activity

directly connected with such transportation.2. In the application of

the provisions of this Agreement by one of the Contracting States, any term

used but not defined herein shall, unless the context otherwise requires, have

the meaning which it has under the laws in force in that State relating to the

taxes which are subject of this Agreement.ARTICLE

3Avoidance

of Double Taxation1. Profits derived by an

enterprise of a Contracting State from the operation of aircraft in

international traffic shall be exempted from tax in the other Contracting

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 purpose of

paragraphs 1 and 2, interest on funds connected with the operation of aircraft

in international traffic shall be regarded as profits derived from the

operation of such aircraft.ARTICLE

4Residual

ProvisionsThe

Laws in force in either of the Contracting States will continue to govern the

assessment and taxation of income in the Contracting States except where

express provision to the contrary is made in this Agreement.ARTICLE

5Entry

into ForceEach

State shall notify to the other the completion of the procedures required by

its law for the bringing into force of this Agreement. The Agreement shall

enter into force on the date of the signature thereon by the Contracting States.

It shall, however, apply in relation to the income of the enterprise of each

Contracting State from the date of, commencement of the operation of that

enterprise in the other Contracting State.ARTICLE

6TerminationThis

Agreement shall continue in effect indefinitely but either Contracting State

may, on or before the thirtieth day of June in any calendar year after the year

1991 give notice of termination to the other Contracting State and in such

event this Agreement shall cease to be effective:a. In Yemen Arab

Republic, in respect of any year of tax commencing on or after the 1st day of

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

given;b. In India, in respect

of any assessment year commencing on or after the 1st day of April of the

second calendar year following the year in which the notice is given.IN

WITNESS WHEREOF the undersigned, duly authorised thereto, have signed the

present Agreement.Done

at New Delhi this thirtieth day of December One thousand nine hundred and

eighty six in two originals in the Hindi, Arabic and English Languages, all

texts being equally authentic. In the case of divergence amongst the three

texts, the English text shall be the operative one.For

the Government of theRepublic

of India(C.

K. TIKKU) Chairman,Central

Board of Direct Taxes andSecretary

to the Government of IndiaFor

the Government ofYemen

Arab RepublicSd/-

ALWAY ALSAMAN)Assistant

Deputy Minister Ex-officio Additional -Ministry of Finance[F.

No. 50114183-FTD]V.

U. ERADI, Jt. Sec