Singapore - Legal Draft

Double Taxation

Avoidance AgreementsIncome-Tax Act, 1961:

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

the India and the Government of the Republic of Singapore for the avoidance of

double taxation and the prevention of fiscal evasion with respect to taxes on

incomeNotification

No. G.S.R. 610(E), dtd. 8.8.1994Whereas

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

Government of the Republic of Singapore for the avoidance of double taxation

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

entered into force on 27th May, 1994, on the notification by both the

Contracting States to each other of the completion of the procedures required

by their respective laws, as required by 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

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

OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.The

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

Singapore.Desiring

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

prevention of fiscal evasion with respect to taxes on income.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. The taxes to which

this Agreement shall apply are:a. In India:Income-tax

including any surcharge thereon (hereinafter referred to as "Indian

tax")a.b. In Singapore:The

income-tax (hereinafter referred to as "Singapore tax").1.2. The Agreement shall

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

either Contracting State after the date of signature of the present Agreement

in addition to, or in place of, the taxes referred to in paragraph 1. The

competent authorities of the Contracting States shall notify each other of any

substantial changes which are made in their respective taxation laws.Article

3GENERAL

DEFINITIONS1. In 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 jurisdictions, according to the Indian law

and in accordance with international law;b. the term

"Singapore" means the Republic of Singapore;c. the terms "a

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

or Singapore as the context requires;d. the term

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

a company or body corporate under the taxation laws in force in the respective

Contracting States;e. the term

"competent authority" means in the case of India, the Central Government

in the Ministry of Finance (Department of Revenue) or their authorised

representative; and in the case of Singapore, the Minister for Finance or his

authorised representative;f. 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;g. the term "fiscal

year" means:i.

in

the case of India, "previous year" as defined under section 3 of the

Income-tax Act, 1961;ii.

in

the case of Singapore, calendar year;a.b.c.d.e.f.g.h. the term

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

operated by an enterprise of a Contracting State, except when the ship or

aircraft is operated solely between places in the other Contracting State;i. the term

"national" means any individual, possessing the nationality of a

Contracting State and any legal person, partnership or association deriving its

status as such from the laws in force in the Contracting State;j. 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;k. the term

"tax" means Indian tax or Singapore 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.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 is a resident of a Contracting State in accordance with the taxation

laws of that State.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 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 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 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 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.Article

5PERMANENT

ESTABLISHMENT1. For the purposes of

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

place of business through which the business of the 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. premises used as a

sales outlet or for soliciting and receiving orders;j. an installation or

structure used for the exploration or exploitation of natural resources but

only if so used for a period of more than 120 days in any fiscal year.1.2.3. A building site or

construction, installation or assembly project constitutes a permanent

establishment only if it continues for a period of more than 183 days in any

fiscal year.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 carries on supervisory

activities in that Contracting State for a, period of more than 183 days in any

fiscal year in connection with a building site or construction, installation or

assembly project which is being undertaken in that Contracting State.5. Notwithstanding the

provisions of paragraphs 3 and 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 that

Contracting State for a period of more than 183 days in any fiscal year in

connection with the exploration, exploitation or extraction of mineral oils in

that Contracting State.6. An enterprise shall

be deemed to have a permanent establishment in a Contracting State if it

furnishes services, other than services referred to in paragraphs 4 and 5 of

this Article and technical services as defined in Article 12, within a

Contracting State through employees or other personnel, but only if:a. activities of that

nature continue within that Contracting State for a period or periods

aggregating to more than 90 days in any fiscal year; orb. activities are

performed for a related enterprise (within the meaning of Article 9 of this

Agreement) for a period or periods aggregating to more than 30 days in any

fiscal year.1.2.3.4.5.6.7. 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, display or occasional 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 occasional 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 advertising, for the supply

of information, for scientific research, or for similar activities which have a

preparatory or auxiliary character, for the enterprise.However,

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

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

State through which the business of the enterprise is wholly or partly carried

on.1.2.3.4.5.6.7.8. Notwithstanding the

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

independent status to whom paragraph 9 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 State, if,a. he has and habitually

exercises in that State an authority to conclude contracts on behalf of the

enterprise, unless his activities are limited to the purchase of goods or

merchandise for the enterprise;b. he has no such

authority, but habitually maintains in the firstmentioned State a stock of

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

behalf of the enterprise; orc. he 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 common control, as that enterprise.1.2.3.4.5.6.7.8.9. 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, 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 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.10. 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.Article

6INCOME

FROM IMMOVABLE PROPERTY1. Income derived by a

resident of a Contracting State from immovable property 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. 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 and aircraft shall not be regarded as immovable

property.3. The provisions of

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

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

paragraphs I 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 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 be taxed in the other State but

only so much of them as is directly or indirectly 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 and 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. In

any case where the correct amount of profits attributable to a permanent

establishment is incapable of determination or the determination thereof

presents exceptional difficulties, the profits attributable to the permanent

establishment may be estimated on a reasonable basis.3. In the determination

of 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 taxation laws of that State.4. In so far as it has

been customary in the Contracting State to determine the profits to be

attributed to a permanent establishment on the basis of an apportionment of the

total profits of the enterprise to its various parts, nothing in paragraph 2

shall preclude that Contracting State from determining the profits to be taxed

by such an apportionment as may be customary; the method of apportionment

adopted shall, however, be such that the result shall be in accordance with the

principles contained in this Article.5. No profits shall be

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

permanent establishment of goods or merchandise for the enterprise.6. 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.7. 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.8. For the purpose of

paragraph 1, the term "directly or indirectly attributable to the

permanent establishment" includes profits arising from transactions in

which the permanent establishment has been involved and such profits shall be

regarded as attributable to the permanent establishment to the extent

appropriate to the part played by the permanent establishment in those

transactions, even if those transactions are made or placed directly with the

overseas head office of the enterprise rather than with the permanent

establishment.Article

8SHIPPING

AND AIR TRANSPORT1. Profits derived by an

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

international traffic 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 engaged in the operation of ships

or aircraft.3. 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 from the transportation by sea or air of

passengers, mail, livestock or goods carried on by the owners or lessees or

charterers of the ships or aircraft, including profits from:a. the sale of tickets

for such transportation on behalf of other enterprises;b. the incidental lease

of ships or aircraft used in such transportation;c. the use, maintenance

or rental of containers (including trailers and related equipment for the

transport of containers) in connection with such transportation; andd. any other activity

directly connected with such transportation.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 those which would be

made 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.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. 10 per cent. of the

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

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. Notwithstanding the

provisions of paragraph 2 of this Article, as long as Singapore does not impose

a tax on dividends in addition to the tax chargeable on the profits or income

of a company, dividends paid by a company which is a resident of Singapore to a

resident of India shall be exempt from any tax in Singapore which may be

chargeable on dividends in addition to the tax chargeable on the profits or

income of the company.4. 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.5. 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 Article 14, as the case may be, shall apply.6. 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 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 such other State.7.a. Dividends shall be

deemed to arise in India if they are paid by a company which is a resident of

India;b. Dividends shall be

deemed to arise in Singapore:i.

if

they are paid by a company which is a resident of Singapore; orii.

if

they are paid by a company which is a resident of Malaysia out of profits

arising in Singapore and qualifying as dividends arising in Singapore under

Article VII of the Agreement for the Avoidance of Double Taxation between

Singapore and Malaysia signed on 26th December, 1968.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 beneficial owner of the

interest is a resident of the other Contracting State, the tax so charged shall

not exceed:a. 10 per cent. of the

gross amount of the interest if such interest is paid on a loan granted by a

bank carrying on a bona fide banking business or by a similar financial

institution (including an insurance company);b. 15 per cent. of the

gross amount of the interest in all other cases.1.2.3. 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.4. 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 fixed base. In such case, the provisions of Article 7 or

Article 14, as the case may be, shall apply.5. Interest shall be

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

itself, a political sub-division, a local authority, a statutory body 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.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 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

12ROYALTIES

AND FEES FOR TECHNICAL SERVICES1. Royalties and 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 and fees for technical sevices 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:a. in the case of

royalties referred to in paragraph 3(a) and fees for technical services as

defined in this Article (other than services described in sub-paragraph (b) of

this paragraph), 15 per cent. of the gross amount of the royalties and fees;b. in the case of

royalties referred to in paragraph 3(b) and fees for technical services as

defined in this Article that are ancillary and subsidiary to the enjoyment of

property for which royalties under paragraph 3(b) are received, 10 per cent. of

the gross amount of the royalties and fees.1.2.3. 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:a. any copyright of a

literary, artistic or scientific work, including cinematograph film or films or

tapes used for radio or television broadcasting, any patent, trade mark, design

or model, plan, secret formula or process, or for information concerning

industrial, commercial or scientific experience, including gains derived from

the alienation of any such right, property or information;b. any industrial,

commercial or scientific equipment, other than payments derived by an

enterprise from activities described it! paragraph 4(b) or 4(c) of Article 8.1.2.3.4. The term "fees

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

to any person in consideration for services of a managerial, technical or

consultancy nature (including the provision of such services through technical

or other personnel) if such services:a. are ancillary and

subsidiary to the application or enjoyment of the right, property. or

information for which a payment described in paragraph 3 is received; orb. make available

technical knowledge, experience, skill, know-how or processes, which enables

the person acquiring the services to apply the technology contained therein; orc. consist of the

development and transfer of a technical plan or technical design, but excludes

any service that does not enable the person acquiring the service to apply the

technology contained therein.For

the purposes of (b) and (c) above, the person acquiring the service shall be

deemed to include an agent, nominee, or transferee of such person.1.2.3.4.5. Notwithstanding

paragraph 4, "fees for technical services" does not include payments:a. for services that are

ancillary and subsidiary, as well as inextricably and essentially linked, to

the sale of property other than a sale described in paragraph 3(a);b. for services that are

ancillary and subsidiary to the rental of ships, aircraft, containers or other

equipment used in connection with the operation of ships or aircraft in

international traffic;c. for teaching in or by

educational institutions;d. for services for the

personal use of the individual or individuals making the payment;e. to an employee of the

person making the payments or to any individual or firm of individuals (other

than a company) for professional services as defined in Article 14;f. for services rendered

in connection with an installation or structure used for the exploration or

exploitation of natural resources referred to in paragraph 2(j) of Article 5;g. for services referred

to in paragraphs 4 and 5 of Article 5.1.2.3.4.5.6. 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 case, the provisions of

Article 7 or Article 14, as the case may be, shall apply.7. Royalties and 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, a

statutory body 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.8. 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 paid exceeds the amount which would have been paid 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 situated in the other Contracting State may 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 together

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 movable

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 principally, directly or indirectly, 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 mentioned in paragraphs 1, 2, 3, 4

and 5 of this Article and paragraph 3(b) of Article 12 shall be taxable only in

the Contracting State of which the alienator is a resident.Article

14INDEPENDENT

PERSONAL SERVICES1. Income derived by an

individual who is 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 90 days in the relevant fiscal year; 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 independent scientific, literary, artistic,

educational or teaching activities, as well as the independent activities of

physicians, surgeons, lawyers, engineers, architects, dentists and accountants.Article

15DEPENDENT

PERSONAL SERVICES1. Subject to the

provisions of Articles 16, 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 firstmentioned State if:a. the recipient is

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

aggregate 183 days in the relevant fiscal year; 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. In the case of a

recipient who satisfies all the conditions under sub-paragraphs (a), (b) and

(c) of paragraph 2, if his remuneration is deductible as an expense against

fees for technical services (dealt with under Article 12) derived by his

employer and the employer has no permanent establishment in the other

Contracting State, the remuneration may, notwithstanding the provisions of

paragraph 2, be taxed in that State. In such case, the tax so charged shall not

exceed 15 per cent. of the gross amount of the remuneration.4. 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 shall be taxable only in that

State.Article

16DIRECTORS'

FEES1.

Directors'

fees and 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

17ARTISTES

AND SPORTSPERSONS1. Notwithstanding the

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

State as an artiste 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 or in connection with personal activities exercised by an artiste or

sportsperson accrues not to the artiste 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 artistes

or sportspersons are exercised.3. Notwithstanding the

provisions of paragraph 1, income derived by an artiste or a sportsperson who

is a resident of a Contracting State from his personal activities as such

exercised in the other Contracting State, shall be taxable only in the

first-mentioned State, if the activities in the other State are

supported-wholly or substantially from the public funds of the first-mentioned

State, including any of its political sub-divisions, local authorities or

statutory bodies.4. Notwithstanding the

provisions of paragraph 2 and Articles 7, 14 and 15, where income in respect of

or in connection with personal activities exercised by an artiste or a

sportsperson in a Contracting State accrues not to the artiste or sportsperson

himself but to another person, that income shall be taxable only in the other

Contracting State, if that other person is supported wholly or substantially

from the public funds of that other State, including any of its political

sub-divisions, local authorities or statutory bodies.Article

18REMUNERATION

AND PENSIONS IN RESPECT OF GOVERNMENT SERVICE1.a. Remuneration, other

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

local authority or a statutory body thereof to an individual in respect of

services rendered to that State or sub-division or authority or body 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, a

local authority or a statutory body thereof to an individual in respect of

services rendered to that State or sub-division or authority or body 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 other State.1.2.3. 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 or a statutory body

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 may be taxed

only in the first-mentioned 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 the payments in return for adequate and full consideration

in money or money's worth.Article

20STUDENTS

AND TRAINEES1. An individual who is

or was a resident of a Contracting State immediately before making a visit to

the other Contracting State and is temporarily present in the other State

solely:-a. as a student at a

recognised university, college, school or other similar recognised educational

institution in that other State;b. as a business or

technical apprentice; orc. as a recipient of a

grant, allowance or award for the primary purpose of study, research or

training from the Government of either State or from a scientific, educational,

religious or charitable organisation or under a technical assistance programme

entered into by the Government of either State;shall be exempt from tax in that

other State on:i.

all

remittances from abroad for the purposes of his maintenance, education, study,

research or training;ii.

the

amount of such grant, allowance or award; andiii.

any

remuneration not exceeding United States dollars five hundred per month or its

equivalent in local currency in respect of services in that other State

provided the services are performed in connection with his study, research or

training or are necessary for the purposes of his maintenance.1.2. 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

21TEACHERS

AND RESEARCHERS1. An individual who is

or was a resident of a Contracting State immediately before making a visit to

the other Contracting State, and who, at the invitation of any university,

college, school or other similar educational institution, visits that other

State for a period not exceeding two years solely for the purpose of teaching

or research or both at such educational institution shall be exempt from tax in

that other State on any remuneration for such teaching or research.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.Article

22INCOME

OF GOVERNMENT1. The Government of a

Contracting State shall be exempt from tax in the other Contracting State in

respect of income derived by that Government from sources within the other

State.2. The types of income

to which paragraph 1 applies are:-a. dividends under

Article 10;b. interest under

Article 11; andc. any other income or

gains derived from transactions not pursuant to the conduct of commercial

activities.1.2.3. For the purposes of

paragraph 1, the term "Government":--a. In the case of

Singapore means the Government of Singapore and shall include:i.

the

Monetary Authority of Singapore and the Board of Commissioners of Currency;ii.

the

Government of Singapore Investment Corporation Pte. Ltd. to the extent it is

not engaged in the conduct of commercial activities;iii.

a

statutory body not engaged in the conduct of commercial activities;iv.

any

other institution or body as may be agreed from time to time between the

competent authorities of the Contracting States;a. In the case of India

means the Government of India and shall include:i.

the

Government of the States and the Union Territories of India;ii.

the

Reserve Bank of India or any of its subsidiaries which is not engaged in the

conduct of commercial activities;iii.

a

statutory body not engaged in the conduct of commercial activities;iv.

any

other institution or body as may be agreed from time to time between the

competent authorities of the Contracting States.Article

23INCOME

NOT EXPRESSLY MENTIONEDItems

of income which are not expressly mentioned in the foregoing Articles of this

Agreement may be taxed in accordance with the taxation laws of the respective

Contracting States.Article

24LIMITATION

OF RELIEF1. Where this Agreement

provides (with or without other conditions) that income from sources in a

Contracting State shall be exempt from tax, or taxed at a reduced rate in that

Contracting State and under the laws in force in the other Contracting State

the said income is subject to tax by reference to the amount thereof which is

remitted to or received in that other Contracting State and not by reference to

the full amount thereof, then the exemption or reduction of tax to be allowed

under this Agreement in the first-mentioned Contracting State shall apply to so

much of the income as is remitted to or received in that other Contracting

State.2. However, this

limitation does not apply to income derived by the Government of a Contracting

State or any person approved by the competent authority of that State for the

purpose of this paragraph. The term 'Government" includes its agencies and

statutory bodies.Article

25AVOIDANCE

OF DOUBLE TAXATION1. The laws in force in

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

income in the respective Contracting States except where express provision to

the contrary is made in this Agreement.2. Where a resident of

India derives income which, in accordance with the provisions of this

Agreement, may be taxed in Singapore, India shall allow as a deduction from the

tax on the income of that resident an amount equal to the Singapore tax paid,

whether directly or by deduction. Where the income is a dividend paid by a

company which is a resident of Singapore to a company which is a resident of

India and which owns directly or indirectly not less than 25 per cent. of the

share capital of the company paying the dividend, the deduction shall take into

account the Singapore tax paid in respect of the profits out of which the

dividend is paid. Such deduction in either case shall not, however, exceed that

part of the tax (as computed before the deduction is given) which is

attributable to the income which may be taxed in Singapore.3. For the purposes of

paragraph 2 of this Article, "Singapore tax paid" shall be deemed to

include any amount of tax which would have been payable but for the reduction

or exemption of Singapore tax granted under:a. the provisions of the

Economic Expansion Incentives (Relief from Income Tax) Act and the provisions

of sections 13(1)(t), 13(1)(u), 13(1)(v), 13(2),