People's Democratic Republic Of Yemen - Legal Draft

AGREEMENT BETWEEN THE

GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE PEOPLE'S

DEMOCRATIC REPUBLIC OF YEMEN FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME

DERIVED FROM INTERNATIONAL AIR TRANSPORT.[Notification

No. 8070 (F. No. 501/1/87-FTD) dated 12-8-1988]G.S.R.

No. 857(E).---Whereas the annexed Agreement between the Government of the

Republic of India and the Government of the People's Democratic Republic of

Yemen for the avoidance of double taxation of income derived from international

air transport has entered into force on 5-8-1988, the date of 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.ANNEXURETHE

GOVERNMENT OF THE REPUBLIC OF INDIAAND

THE GOVERNMENT OF THE PEOPLE'S DEMOCRATIC REPUBLIC OF YEMEN 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

People's Democratic Republic of Yemen, the income-tax including surcharge

thereon (hereinafter referred to as "Yemeni Tax");b. in the case of India:i.

the

income-tax including any surcharge there on;ii.

the

surtax(hereinafter

referred to as "Indian Tax").1.2. This Agreement shall

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

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

taxes refered 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 terms 'a

Contracting State' and 'the other Contracting State' mean "People's

Democratic Republic of Yemen" or "India", as the context

requires;b. the term 'tax' means

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

of a Contracting State' means airlines 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 term 'operation

of aircraft' means the transportation by air of passengers, livestock, goods or

mail carried on by the owners or lessees or charterers of aircraft, including

the sale of tickets for such transportation, the incidental lease of aircraft

in cluding on a charter basis and any other activity directly connected with

such transportation;f. the term 'competent

authority' means:i.

in

the case of the People's Democratic Republic of Yemen, the Ministry of Finance

or its authorised representative;ii.

in

the case of India, the Central Government in the Department of Revenue or its

authorised representative.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 subject of this Agreement.ARTICLE

3AVOIDANCE

OF DOUBLE TAXATION1. Income derived by an

enterprise of a Contracting State from the operation of aircraft in

international air traffic shall be exempted from tax in the other Contracting

State.2. The provisions of

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

joint airline 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 air traffic shall be regarded as income derived from the

operation of such aircraft.ARTICLE

4MUTUAL

AGREEMENT PROCEDUREThe

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.ARTICLE

5ENTRY

INTO FORCEEach

of the Contracting States 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 signature thereon by the

Contracting States, and shall thereupon have effect in respect of income

arising in any fiscal year commencing on or after the 1st day of January, 1983.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

1993 give notice of termination to the other Contracting State and in such

event this Agreement shall cease to be effective in respect of income arising

in any fiscal year commencing on or after the 1st day of January next following

the calendar 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 Fifth day of August one thousand nine hundred and eighty eight

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(Sd.)

(P. K. APPACHOO)Joint

Secretary to the Government of India.For

the Government of thePeople's

Democratic Republic of Yemen(Sd.)

(H.E. MOHAMED BIN MOHAMED AL-HUBEISHI)Ambassador

Extraordinary and Plenipotentiary of the People's Democratic Republic of Yemen[FM

501/1/87-FTD Notification No. 8070]