Kuwait Legal Draft Template

Double Taxation

Avoidance AgreementAgreement Between The

Government Of The Republic Of India And The Government Of The State Of Kuwait

For The Avoidance Of Double Taxation Of Income Derived From International Air

Transport.Notification

F. No. 501/1/800-FTD dated 31-3-1983.G.S.R.

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

of India and the Government of the State of Kuwait for the avoidance of double

taxation of Income derived from international air transport as come into force

on the notification by both the Contracting States to each other of completion

of the procedures required by their respective laws, 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) Sur-tax 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 INDIA AND THE GOVERNMENT OF THE STATE

OF KUWAIT FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM

INTERNATIONAL AIR TRANSPORTThe

Government of India and the Government of Kuwait desiring to conclude an

Agreement for the avoidance of double taxation of income derived from

international air transport.Have

agreed as follows:ARTICLE

1. The existing taxes to

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

Kuwait:i.

the

income-tax imposed under the Income-Tax Decree No. 3 of 1955;ii.

the

additional income-tax imposed under the Law No. 34 of 1970 (hereinafter

referred to is " Kuwait tax ").a.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)

(hereinafter referred to as " Indian tax ").1.2. 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.ARTICLE

1. In this Agreement,

unless the context otherwise requires:a. the term "

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

and airspace above;b. the term " India

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

airspace above it as well as any other maritime zone referred to in the

Territorial Waters, Continental Shelf, Exclusive Economic Zone and other

Maritime Zones Act, 1976 (Act No. 80 of 1976), in which India has certain

rights and to the extent that these rights can be exercised therein as if such

maritime zone is a part of the territory of India;a.b.c. the term " a

Contracting State " and the " other Contracting State " mean

Kuwait or India, as the context requires;d. the term " tax

" means " Kuwait tax " or " Indian tax " as the

context requires;e. the term "

enterprise of a Contracting State " means an airline which is authorised

by the Government of that State by a general or special arrangement between the

two Contracting States to operate scheduled or non-scheduled fights between or

beyond their territories;f. the term "

international 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;g. the expression "

operation of aircraft " means a business of carriage by air of persons,

livestock, baggage, cargo or mail and includes the sale of tickets and airway

bills for, and the provision of services connected with, such carriage either

for the enterprise itself or for any other enterprise engaged in such

operations.1.2. 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 the subjects of this Agreement.ARTICLE

1. Profits derived by an

enterprise of a Contracting State from the operation of aircraft in

international traffic shall be exempt from tax in the other Contracting State.2. The provisions of

paragraph 1 shall also apply to the share of profits from the operation of

aircraft in international traffic derive by an enterprise of a Contracting

State through participation in a pooled service, in a joint air transport

operation or in an international operating agency.3. For the purpose of

paragraph 1, interest on funds directly connected with the operation of

aircraft in international traffic shall regarded as income from the operation

of aircraft.ARTICLE

4The

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 provisions to the contrary is made in this Agreement.ARTICLE

1. This Agreement shall

be approved in accordance with the laws in force in each of the Contracting

States. It shall enter into force thirty days after the exchange of letters

certifying that the proper procedure was fulfilled in each Contracting State.

The exchange of letters shall take place at New Delhi.2. The provisions of

this Agreement shall have effect in respect of the earnings arising from

1-1-1967.3. No action would be

taken to reopen assessments in respect of the period prior to 1-1-1967.ARTICLE

6This

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

1986 give notice of termination to the other Contracting State and in such

event this Agreement shall cease to be effective:a. In Kuwait, in respect

of any year of tax commencing on or after the 1st day of July 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

in duplicate at Kuwait this twenty-first day of April, one thousand nine

hundred and eighty-two in the Hindi, Arabic, and English languages and in the

event of any doubt, the English text shall prevail.Sd/

Sd/For

the Government of India For the Government of Kuwait.[F.

No. 501/1/80-FTD] R. R. KHOSLA, Jt. Secy.AGREEMENT

FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR

TRANSPORT BETWEEN THE REPUBLIC OF INDIA AND THE STATE OF KUWAIT: CorrigendumNotification

No. G.S.R. 792(E), dtd. 11.10.1983In

the notification of the Government of India in the Ministry of Finance

(Department of Revenue) No. G.S.R. 302(E), dtd. 31.03.1983, published at 124 of

the Gazette of India, extraordinary, Part II section 3, sub-section (i), dtd.

1. 03.1983,-1. at page 3, in Article

2,-i.

in

paragraph 1, clause (c), line 2, for "he" read "the";ii.

in

line 4 from the bottom, for '(c) the term "tax"', read '(d)the term

"tax"':1.2. at page 4,-a. in Article 3,-i.

in

paragraph 2, line 3, for "derive", read "derived";ii.

in

paragraph 3, line 2, for "airraft", read "aircraft";a.b. in Article 5,

paragraph 1, line 5, for "The exchange ", read "The

exchange".[F.

No. 501/1/80-FTD]