Trinidad And Tobago - Legal Draft

Double Taxation

Avoidance AgreementIncome Tax Act,

1961:Notifications under section 90:Convention between the Government of the

Republic of India and the Government of the Republic of Trinidad and Tobago for

the avoidance of double taxation and the prevention of fiscal evasion with

respect to taxes on income.Notification

No. G.S.R. 720(E),dtd.26.10.1999Whereas

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

Government of the Republic of Trinidad and Tobago for the avoidance of double

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

has entered into force on the thirteenth day of October, 1999, thirty days

after the receipt of the later of the notifications by both the Contracting

States to each other of the completion of the procedures required under their

laws for bringing into force of the said Convention in accordance with Article

29 of the said Convention;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 Convention shall be given effect to in the Union of India.CONVENTION

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

REPUBLIC OF TRINIDAD AND TOBAGO FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE

PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOMEThe

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

Trinidad and Tobago desiring to conclude a Convention 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 as follows:ARTICLE

1Personal

ScopeThis

Convention shall apply to persons who are residents of one or both of the

Contracting States.ARTICLE

2Taxes

Covered1. This Convention 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. There shall be

regarded as taxes on income all taxes imposed on total income or on elements of

income including taxes on gains from the alienation of movable or immovable

property, taxes on the total amounts of wages or salaries paid by enterprises,

as well as taxes on capital appreciation.3. The existing taxes

which are the subject of this Convention are:a. in the case of

Trinidad and Tobago, the corporation tax, the income-tax, the unemployment levy

and the petroleum profits tax (hereinafter referred to as "Trinidad and

Tobago tax");b. in the case of India,

the income-tax, including any surcharge thereon (hereinafter referred to as

"Indian tax").1.2.3.4. This Convention shall

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

a Contracting State after the date of signature of this Convention in addition

to, or in place of, the taxes referred to in paragraph 3. The competent authorities

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

which have been made in their respective taxation laws.ARTICLE

3General

Definitions1. For the purposes of

this Convention, unless the context otherwise requires:a. the term 'Trinidad

and Tobago" means the Archipelagic State of Trinidad and Tobago,

comprising the several islands of Trinidad and Tobago, its archipelagic waters,

territorial sea and the airspace thereof, together with the adjacent submarine

areas of the Exclusive Economic Zone and the continental shelf beyond the

territorial sea over which Trinidad and Tobago exercises sovereign or other

rights in accordance with the laws of Trinidad and Tobago and with

international law;b. the term

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

and airspace above it, as well as any other maritime zone in which India has

sovereign rights, other rights and jurisdiction, according to the Indian law

and in accordance with international law, including the UN Convention on the

Law of the Sea;c. the terms "a

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

Republic of Trinidad and Tobago or the Republic of India, as the context

requires;d. 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;e. the term

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

a body corporate for tax purposes;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 "international

traffic" means any transport by ship or aircraft operated by an enterprise

which is a resident of a Contracting State, except when the ship or aircraft is

operated solely between places in the other Contracting State;h. the term

"competent authority" means:i.

in

the case of Trinidad and Tobago, the Minister to whom the responsibility for

Finance is assigned or his authorized representative;ii.

in

the case of India, the Central Government in the Ministry of Finance

(Department of Revenue) or their authorised representative;a.b.c.d.e.f.g.h.i. 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.j. the term "fiscal

year" means:i.

in

the case of Trinidad and Tobago, the "year of income" as defined in

section 2(1) of the Income-tax Act, Chapter 75:01;ii.

in

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

Income-tax Act, 1961;a.b.c.d.e.f.g.h.i.j.k. the term

"tax" means Trinidad and Tobago tax or Indian 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 Convention applies

or which represents a penalty or fine imposed relating to those taxes.1.2. In the application of

this Convention by a Contracting State, any term not defined herein shall,

unless the context otherwise requires, have the meaning which it has under the

laws of that contracting State relating to the taxes which are the subject of

this Convention.ARTICLE

4Resident1. For purposes of this

Convention, 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.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 a habitual abode;c. if he has a 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. If the State in

which its place or 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 Convention, 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 warehouse in

relation to a person providing storage facilities for others:g. a sales outlet;h. a mine, an oil or gas

well, a quarry or any other place of extraction of natural resources;i. a drilling rig or

ship used for, or in connection with, the exploration or development of natural

resources;j. a dredging project;k. a farm, plantation or

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

carried on; andl. a building site or construction

or assembly project or supervisory activities in connection therewith only if

such site, project or activity last more than nine months.1.2.3. 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 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. Notwithstanding the

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

independent status to whom paragraph 6 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 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 3 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. Notwithstanding the

preceding provisions of this Article an 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 State or insures risks situated therein through a

person other than an agent of an independent status to whom paragraph 6

applies.6. An enterprise shall

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

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

commission agent or any other agent of an independent status, provided that

such person is 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.7. 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

laws 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, motor vehicles 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 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 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 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.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 laws of that State.4. 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.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

Convention, 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. 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 in 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.3. For the purposes of

this Article, interest earned incidentally 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. 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 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.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 enterprise of the first-mentioned State if the

conditions made between the two enterprises had been those which would have

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

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 Convention and the competent authorities of the Contracting

States shall, if necessary consult each other.ARTICLE

10Dividends1. Dividends paid by a

company which is a resident of a Contracting State to a resident of the other

Contracting State may also 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 10 per cent of the gross amount of the dividends. This

paragraph shall not affect the taxation of the company in respect of the

profits out of which the dividends are paid.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, 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.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 insofar as such dividends are paid to a resident of

that other State or insofar 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.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 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. The competent authorities of the Contracting

States shall by mutual agreement settle the mode of application of this

limitation.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.a. in the case of

Trinidad and Tobago, the Central Bank of Trinidad and Tobago, the Agricultural

Development Bank, the Export. Insurance Company, the National Housing

Authority, the National Insurance Board, the Home Mortgage Bank, the Deposit

Insurance Corporation, the Small Business Development Company, the Development

Finance Limited and the Trinidad and Tobago Mortgage Finance Company;b. in the case of India,

the Reserve Bank of India, the Industrial Finance Corporation of India, the

Industrial Development Bank of India, the Export Import Bank of India, the

National Housing Bank, the Small Industries Development Bank of India and the

Industrial Credit and Investment Corporation of India (ICICI); ori.ii.iii.

any

other institution of agency as 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, but shall not

include any item which is treated as a distribution under the provisions of

Article 10 of this Convention. 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 fixed base. In such case, the provisions of Article

7 or 14, as the case may be, shall apply.6. Interest 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 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

State in which the permanent establishment or fixed base is situated.7. 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 had to the other provisions of this Convention.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 a literary, artistic or scientific work including cinematograph films or

recordings on any means of reproduction for use in connection with television

or radio broadcasting, any patent, trade-mark, design or model, plan, know-how,

computer software programme, 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 Convention.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, 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 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 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.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 Convention.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 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 base, 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, 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

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; orc. if the remuneration

for his activities in the other Contracting State is paid by a resident of that

Contracting State or is borne by a permanent establishment or a fixed base

situated in that Contracting State and exceeds in the fiscal year a sum of

Rupees 40,000 or its equivalent in Trinidad and Tobago currency.1.2. The term

"professional services" includes especially independent scientific,

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

independent activities of medical practitioners, lawyers, engineers,

architects, dentists and accountants.ARTICLE

15Dependent

Personal Services1. Subject to the

provisions of Articles 16, 18, and 19 salaries, wages emoluments 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 also 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 not 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.ARTICLE

16Directors'

FeesDirectors'

fees and other similar payments derived by a resident of a Contracting State in

his or her 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 also 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 a case, the

income is taxable only in the Contracting State of which the entertainer or

sportsperson is a resident.ARTICLE

18Pensions

and Social Security Payments1. Subject to the provisions

of paragraph 2 of Article 19, pensions and other similar remuneration paid in

consideration of past employment to a resident of a Contracting State and any

annuity paid to such a resident may also be taxed in that State.2. Notwithstanding the

provisions of paragraph 1, pensions paid and other payments made under a public

scheme which is part of the social security system of a Contracting State or a

political sub-division or a local authority thereof 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 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 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 other 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 Apprentices1. A 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,

besides grants, loans and scholarships, 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 for an amount not exceeding the amount which is

exempt from tax under the laws of that other Contracting State for any fiscal

year, provided that such employment is directly related to his studies or is

undertaken for the purpose of his maintenance.1.2. The benefit 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

seven consecutive years from the date of his first arrival in that other

Contracting State.ARTICLE

21Professors,

Teachers and Research Scholars1. A professor, teacher

or research scholar 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 a specific 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

paragraph 1 "approved institutions" means an institution which has

been approved in this regard by the competent authority of the State in which

the institution is located.ARTICLE

22Other

Income1. Items of income of a

resident of a contracting State, wherever arising, not dealt with in the

foregoing Articles of this Convention 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:a. 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 of 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;b. if the resident of a

Contracting State derives income from sources within the other Contracting

State in the of lotteries, crossword puzzles, races including horse races, card

games and other games of any sort or gambling or betting of any form or nature

whatsoever, such income may be taxed in the other Contracting State.1.2.3. 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 Convention

and arising in the other Contracting State may also be taxed in that other State.ARTICLE

23Elimination

of Double Taxation1. The laws in force in

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

in the respective Contracting States except where provisions to the contrary

are made in this Convention.2. In the case of

Trinidad and Tobago, double taxation shall be eliminated as follows: Where a

resident of Trinidad and Tobago derives income which, in accordance with the

provisions of this Convention, may be taxed in India, Trinidad and Tobago shall

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

equal to the income-tax paid in India, whether directly or by deduction at

source. 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.3. 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 Convention, may

be taxed in Trinidad and Tobago, India shall allow as a deduction from the tax

on the income of that resident an amount equal to the income-tax paid in

Trinidad and Tobago, whether directly or by deduction at source. 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

Trinidad and Tobago.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.5. Income which in

accordance with the provisions of this Convention, is not to be subjected to

tax in a Contracting State, may be taken into account for calculating the rate

of tax to be imposed in that Contracting State.ARTICLE

24Non-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 a

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 a 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 that profits of a similar

company of the first-mentioned Contracting State, nor as being in conflict with

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

Article shall be construed as obliging a Contracting State to grant to the

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

deductions for taxation purposes on account of civil status or family

responsibilities which it grants to its own residents.4. Except where the

provisions of Article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12

apply, interest, royalties and fees for technical services 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.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. The provisions of

this Article shall, notwithstanding the provisions of Article 2, apply to taxes

of every kind and description.ARTICLE

25Mutual

Agreement Procedure1. Where a person

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

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

convention, 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 24, 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 this

Convention.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

this Convention. 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 this convention. They may also consult together for the

elimination of double taxation in cases not provided for in this Convention.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. The competent authorities shall, through consultations, develop

appropriate bilateral procedures, conditions, methods and techniques for the

implementation of the mutual agreement procedure provided for in this Article.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

Convention or of the domestic laws of the Contracting States concerning taxes

covered by this Convention insofar as the taxation thereunder is not contrary

to this Convention 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 this Convention. Such persons or authorities shall use the

information. Such persons or authorities shall use the information only for

such purposes. They may disclose the information in public Court proceedings or

in judicial decision.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 are 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

or documents 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

27Diplomatic

Agents and Consular OfficersNothing

in this Convention 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

28Collection

Assistance1. The Contracting

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

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

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

"revenue claim".2. Request 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. Amount 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 this public policy.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 Convention.2. This Convention 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 Convention shall have effect:a. In Trinidad and

Tobago:i.

in

respect of taxes withheld at source, to income paid or credited on or after

first January in the calendar year next following that in which this Convention

enters into force;