Qatar - Legal Draft

Double Taxation

Avoidance AgreementAgreement between

India and QatarWhereas

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

Government of the State of Qatar of the avoidance of double taxation and the

prevention of fiscal evasion with respect to taxes on income, has come into

force on the 15th day of January, 2000, on the notification by both the

Contracting States to each other under Article 29 of the said Agreement, of the

completion of the procedures required by their respective laws for the bringing

into force of the said Agreement:Now,

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

Act, 1961 (43 of 1961), the Central Government hereby directs that all the

provisions of the said Agreement shall be given effect to in the Union of

India.AGREEMENT

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

OF QATAR FOR THE AVOIDANCE OF DOUBLE TAXATION AND FOR THE PREVENTION OF FISCAL

EVASION WITH RESPECT TO TAXES ON INCOME.The

Government of the Republic of India and the Government of the State Qatar,

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

prevention of fiscal evasion with respect to taxes on income and with a view to

promoting economic co-operation between the two countries have agreed ass

follows:Article

1PERSONS

COVEREDThis

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 imposed on behalf of a Contracting State or of its

political sub-divisions or local authorities irrespective of the manner in

which they are levied.2. The existing taxes to

which the Agreement shall apply are in particular:a. In India:The

income-tax, including any surcharge thereon; and(Hereinafter

referred to as "Indian tax").a.b. In the State of

Qatar:The

income tax;(Hereinafter

referred to as "Qatari tax").1.2.3. The Agreement shall

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

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

the existing taxes referred to in paragraph 2. The competent authorities of the

Contracting States shall notify each other of significant changes which have

been made in their respective taxation laws.Article

3GENERAL

DEFINITIONS1. For the purposes of

this Agreement, unless the context otherwise requires:a. 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 jurisdiction, according to the Indian law

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

Law of the Sea;b. The term "the

State of Qatar" means the territory of the State of Qatar, as well as its

territorial sea and its continental shelf over which it exercises sovereign

rights and jurisdiction according to the Qatari law and in accordance with

international laws.c. 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;d. The term

"company" means any body corporate or any entity which is treated as

a body corporate for tax purposes;e. 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;f. The term

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

operated by an enterprise which is a resident of a Contracting State, except

when the ship or aircraft is operates solely between places in the other

Contracting State;g. The term

"competent authority" means:i.

In

India: the Central Government in the Ministry of Finance (Department of

Revenue) or their authority representative;ii.

In

the State of Qatar: the Minister of Finance, Economy and Commerce or his

authorised representative;a.b.c.d.e.f.g.h. 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;a.b.c.d.e.f.g.h.i. The term "fiscal

year" means:i.

In

the case of India, "previous year" as defined in the Income-tax Act,

1961 (43 of 1961);ii.

In

the case of the State of Qatar, "taxable year" as defined in Qatar

Income Tax Law;a.b.c.d.e.f.g.h.i.j. The term

"tax" means Indian tax or Qatari 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 or fine imposed relating to those taxes;k. The terms "a

Contracting State" and " the other Contracting State" mean the

Republic of India or the State of Qatar, as the context requires.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 law 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, residence, place of management or any other criterion of a

similar nature. This term, however, does not include any person who is liable

to tax, in that State in respect only of income from sources in that State.2. Where by reason of

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

State, 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 interest cannot be determined, or if he has not a

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

resident of the State in which he has an habitual abode;c. If he has an habitual

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

resident of the State of which he is a national;d. If he is a national

of both States or of neither of them, the competent authorities of the

Contracting States shall settle the question by mutual agreement.1.2.3. Where by reason by

the provisions of paragraph 1 a person other than an individual is 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 State 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 natural resources;g. A sales outlet;h. A warehouse in

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

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

carried on.1.2.3. A building site,

construction, assembly project or supervisory activities in connection

therewith constitute a permanent establishment only if such site, project or

activity last more than six months.4. 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.5. 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 purpose of storage or 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, display or delivery;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.1.2.3.4.5.6. Notwithstanding the

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

independent status to whom paragraph 8 applies - is acting in a Contracting

State 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 5 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; orc. Habitually secures

orders in the first-mentioned State, wholly or almost wholly for the enterprise

itself or for the enterprise and other enterprises controlling, controlled by,

or subject to the same control, as that enterprise.1.2.3.4.5.6.7. Notwithstanding the

preceding provisions of this article on 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 Contracting State situated therein through a person

other than an agent of an independent status to whom paragraph 8 applies.8. An enterprise shall

not be deemed to have a permanent establishment in a Contracting State merely

because it caries on business in that State through a broker, general

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, he will not be considered an agent of an independent status

within the meaning of this paragraph.9. 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 State (whether through a permanent establishment, or

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

of the other.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 also 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. The

term shall in any case include property accessory to immovable property,

livestock and equipment used in agriculture and forestry, rights to which the

provisions of general law respecting landed property apply, usufruct of

immovable property and rights to variable or fixed payments as consideration

for the working of, or the right to work, mineral deposits, sources and other

natural resources; ships boats 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 also apply to the income from immovable property of an

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

independent personal services.Article

7BUSINESS

PROFITS1. The profit 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 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 be expected to make if it

were a distinct an separate enterprise engaged in the same or similar

activities under the same or similar conditions and dealing 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 deductions

expenses which are incurred for the purposes of the business 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 tax laws of that State.4. No profits shall be

attributed to a permanent establishment by reason of the permanent

establishment of goods or merchandise for the enterprise.5. For the purposes 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

is good and sufficient reason to the contrary.6. Where 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

8SHIPPING

AND AIR TRANSPORT1. Profits derived by an

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

international traffic shall be taxable only in that State.2. In the case of the

State of a Qatar for the purposes of the preceding paragraph the ships and

aircraft shall mean Gulf Air Company and United Arab Shipping Company so long

as the State of Qatar owns a share in these companies or any other air or sea

transport enterprise designated by the Government of the State of Qatar.3. Profits derived by a

transportation enterprise which is a resident of a Contracting State from the

use, maintenance, or rental of containers (including trailers and other

equipment for the transport of containers) used for the transport of goods or

merchandise in international traffic shall be taxable only in that Contracting

State unless the containers are used solely within the other Contracting State.4. For the purposes of

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

aircrafts 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.5. The provisions of

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

joint business or an international operating agency.Article

9ASSOCIATED

ENTERPRISES1. Where: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 these

which would mad between independent enterprises, then any profits which would,

but for those conditions, 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.1.2. Where a Contracting

State includes in the profits of an enterprise of that State - and taxes

accordingly - profits on which an enterprise of the other Contracting State has

been charged to tax in that other State and the profits so included are profits

which would have accrued to the enterprises had been those which would have

been made between independent enterprises, then that other State shall make an

appropriate adjustment to the amount of the tax charged therein on those

profits. In determining such adjustment, due regard shall be had to the other

provisions of this Agreement and the competent authorities of the Contracting

States shall, if necessary, consult each other. However, in such circumstances

a Contracting State shall not adjust the profits of an enterprise after the

expiry of the time limits provided under its statute of limitations.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 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. 5 per cent. of gross

amount of the dividends if the beneficial owner is a company which owns at

least ten per cent. of the shares of the company paying the dividend; andb. 10 per cent. of 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 corporate rights which is subjected to the same taxation treatment as

income from shares by the laws of the 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, 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 article 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 hat 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 such other State.Article

11INTEREST1. Interest arising in a

Contracting Stat 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, 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/agencies that may be mutually agreed upon between the

two Contracting States.1.2.3.4. 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 the 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 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.6. 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 case, the excess part of the payment shall remain taxable according to the

laws of each Contracting State, due regard being has 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 10 per cent. of the gross amount

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

"royalties" as used in this article means payments 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 cinematograph films and

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

design or model, plan, secret formula or process, or any industrial, commercial

or scientific equipment or for information concerning industrial, commercial or

scientific experience;b. the term "fees

for technical services" 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.1.2.3.4. 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, 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 or property

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 case the

provisions of article 7 or article 14, as the case may be, shall apply.5. 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

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.6. 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 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 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 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

GAINS1. Gains derived by a

resident of a Contracting State from the alienation of immovable property

referred to in article 6 and situate in the other Contracting State may also be

taxed in that other State.2. Gains from the

alienation of movable 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 movable 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 bas, may also be taxed in that other State.3. Gains derived by an

enterprise of a Contracting State from the alienation of ships or aircraft

operated in international traffic or movable property pertaining to the

operation of such ships or aircraft shall be taxable only in that State.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 in respect of professional services or other

activities of an independent 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 State is for a period or periods aggregating 183 days or more in any

12-month period commencing or ending in the fiscal year concerned; 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 State.1.2. The term

"professional services" includes especially independent scientific,

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

independent activities of physicians, lawyers, engineers, architects, surgeons,

dentists and accountants.Article

15DEPENDENT

PERSONAL SERVICES1. Subject to the

provisions of articles 16,18 and 19 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 State for a period or periods no exceeding in the

aggregate 183 days in any 12-month period commencing or ending in the fiscal

year concerned; 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 State.1.2.3. Notwithstanding the

preceding provisions of this article, remuneration derived in respect of an employment

exercised aboard a ship or aircraft operated in international traffic, by an

enterprise of a Contracting State may be taxed in that State.4. Notwithstanding the

preceding provisions of this article, the two Contracting State shall exempt

salaries, wages, allowances and perquisites from tax in the case of employees

of a designated national air transport carrier of either Contracting State

provided that they are nationals of the other Contracting 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 also be taxed in that other State.Article

17ARTISTES

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, that 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 substantially supported by public funds of one or both of the Contracting

States or of political sub-divisions or local authorities thereof. In such

case, the income is taxable only in the Contracting State of which the

entertainer or sportsperson is a resident.Article

18PENSIONSSubject

to the provisions of paragraph 2 of article 19, pensions and other similar

remuneration paid to a resident of a Contracting State in consideration of past

employment shall be taxable only in that State.Article

19GOVERNMENT

SERVICE1.a. Remuneration, other

than a 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 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 authority shall be taxable 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.1.2.3. The provisions of

articles 15,16 and 18 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

20STUDENTS

AND APPRENTICESA

student or business apprentice who is or was a resident of a Contracting State

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

that other Contracting 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, in an amount not exceeding US $ 1000 or its

equivalent amount during any fiscal year, as the case may be, provided that

such employment is directed to his studies or is undertaken for the purpose of

his maintenance.Article

21PROFESSORS,

TEACHERS AND RESEARCH SCHOLARS1. A professor or

teacher who is or was a resident of the Contracting State immediately before

visiting the other Contracting State for the purpose of teaching or engaging in

research, or both, at a university, college, school or other approved

institution in that other 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 person or persons.3. For the purposes of

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

a Contracting State if he is resident in that State in the fiscal year in which

he visits the other Contracting State or in the immediately preceding fiscal

year.4. For the purposes of

this paragraph "approved institutions" means an institution which has

been approved in this regard by the competent authority of the concerned State.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 or property in respect of which the income is

paid is effectively connected with such permanent establishment or fixed base.

In such 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 also be taxed in that other

State.Article

23MUTUAL

AGREEMENT PROCEDURE1. Where a person

considers that the actions of one or both of the Contracting States result or

will result for him in taxation not in accordance with the provisions of this

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

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

State of which he is a resident or, if 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 first notification of the

action resulting in taxation not in accordance with the provisions of the

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 with a view to 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 each other 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 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

24ELIMINATION

OF DOUBLE TAXATION1. The laws in force in

either of the Contracting States will continue to govern the taxation of income

in the respective Contracting States except where provisions to the contrary

are made in this Agreement.2. In the case of India,

double taxation shall be eliminated as follows:Where

a resident of India derives income which, in accordance with the provisions of

this Agreement, may be taxed in the State of Qatar, India shall allow as a

deduction from the tax on the income of the at resident an amount equal to the

income tax paid in the State of Qatar, whether directly or by deduction at

source. Such amount shall not, however, exceed that part of the income tax as

computed before the deduction is given, which is attributable to the income

which may be taxed in the State of Qatar.1.2.3. In the case of the

State of Qatar, double taxation shall be eliminated as follows:Where

a resident of the State of Qatar derives income, which, in accordance with the

provisions of this Agreement, may be taxed in India, The State of Qatar shall

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

equal to the income-tax paid in India. Such deduction shall not, however,

exceed that part of the income-tax, as computed before the deduction is given,

which is attributable to the income 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.Article

25NON-DISCRIMINATION1. Nationals of a

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

taxation or any requirement connected therewith, which is other or more burdensome

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

State in the same circumstances are or may be subjected. This provision shall,

notwithstanding the provisions of article 1, also apply to persons who are not

residents of one or both of the Contracting States.2. The taxation on

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

a company 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

company of the first-mentioned Contracting State, not as being in conflict with

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

article shall be construed as obliging a Contracting State to grant to

residents of the other Contracting State any personal allowances, reliefs and

reductions for taxation purposes on account of civil status or family

responsibilities which it grants to its own nationals.4. Nothing in this

article shall be construed as imposing a legal obligation on a Contracting

State to extend to the residents of the other Contracting State the benefit of

any treatment preference or privilege which may be accorded to any other State

or its residents through agreements to which the first mentioned Contracting

State may be party.5. 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 are or may be subjected.6. Except where the

provisions of article 9, paragraph 7 o f article 11, or paragraph 6 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 taxable profits of such enterprise, 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 taxable capital of such enterprise, be deductible under the

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

first-mentioned State.7. In this article, the

term "taxation" means taxes, which are the subject of this Agreement.Article

26EXCHANGE

OF INFORMATION1. The competent

authorities of the Contracting States shall exchange such information

(including documents), 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

by the Agreement in particular for the prevention of fraud or evasion of such

taxes. 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.2. In no case shall the

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

the obligation:a. To carry out

administrative measures at variance with the laws and administrative practice

of that or of the other Contracting State;b. To supply information

or documents which is 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, 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

27COLLECTION

ASSISTANCE1. The Contracting

States undertake to lend assistance to each other in the collection of taxes to

which this Agreement relates, together with interest, costs, and civil

penalties relating to such taxes, referred to in this article as a

"revenue claim".2. Requests for

assistance by the competent authority of a Contracting State in the collection

of a revenue claim shall include a certification by such authority that, under

the laws of that State, the revenue claim has been finally determined. For the

purposes of this article, a revenue claim is finally determined when a

Contracting State has the right under its internal law to collect the revenue

claim and the taxpayer has no further rights to restrain collection.3. Amounts collected by

the competent authority of a Contracting State pursuant to this article shall

be forwarded to the competent authority of the other Contracting State.

However, the first-mentioned Contracting State shall be entitled to

reimbursement of costs, if any, incurred in the course of rendering such

assistance to the extent mutually agreed between the competent authorities of

the two States.4. Nothing in this

article shall be construed as imposing on either Contracting State the

obligation to carry out administrative measures of a different nature from

those used in the collection of its own taxes or those, which would be contrary

to its public policy.Article

28DIPLOMATIC

AGENTS AND CONSULAR OFFICERSNothing

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

consular officers under the general rules of international law or under the

provisions of special agreements.Article

29ENTRY

INTO FORCE1. The Contracting

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

completion of the procedures 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 in India