Uzbekistan
Notification No. S. O. 790(E), dated 13th November, 1996.
Whereas the annexed Agreement between the
Government of the Republic of India and the Government of the Republic of
Uzbekistan for the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income and on capital has entered into force
on the 25th January, 1994, on the notification by both the Contracting States
to each other of the completion of the procedures required under their laws for
the bringing into force of the said Agreement in accordance with Article 30 of
the said Agreement.
Now, therefore, in exercise of the powers
conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), and section
44A of the Wealth-tax Act, 1957 (27 of 1957), the Central Government hereby
directs that all the provisions of the said Agreement shall be given effect to
in the Union of India.
ANNEXURE
AGREEMENT
BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE
REPUBLIC OF UZBEKISTAN FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION
OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL
The Government of the Republic of India and the Government of the
Republic of Uzbekistan.
Desiring to conclude an
Agreement for the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income and on capital, have agreed as follows:
Article 1 PERSONAL SCOPE
This
Agreement shall apply to persons who are residents of one or both of the
Contracting States.
Article 2
TAXES COVERED
1.
The taxes to which this Agreement shall apply are:
a.
in Uzbekistan;
i. the taxes on profit; ii. the wealth-tax;
iii. the income-tax on legal persons
as well as individuals;
(hereinafter referred to as "Uzbekistan
tax");
b. In India:
i.
the income-tax, including any surcharge thereon;
and
ii.
the wealth-tax;
(hereinafter referred to as "Indian
tax");
2.
The present 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 3 GENERAL DEFINITIONS
1.
In this Agreement, unless the context otherwise
requires:
a.
the term "India" means the territory of India
and includes the territorial sea and air space above it, and other maritime
zones in which India has sovereign rights, other rights and jurisdictions,
according to the Indian law and in accordance with international law;
b.
the term "Uzbekistan" means in a geographical
sense land, territorial waters, and other zones in which Uzbekistan has
sovereign rights, and jurisdictions, according to the international law and tax
laws of the Republic of Uzbekistan;
c.
the terms "Contracting State" and "the
other Contracting State" means Uzbekistan or India 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 Uzbekistan, the Central State Taxation
Board; and in the case of India, the Central
Government in the Ministry of Finance (Department of Revenue) or their
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 Uzbekistan, the calendar year
from 1st of January to 31st of December of the year under review;
ii.
in the case of India, "previous year"
as defined under section 3 of the Income-tax Act, 1961;
h.
the term "international traffic" means any
transport by a ship, aircraft or motor vehicles operated by an enterprise of a
Contracting State except when the ship, aircraft or motor vehicle 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 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 Uzbekistan
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.
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 4 RESIDENT
1.
For the purposes of this Agreement, the term
"resident of a Contracting State" means any person who, under the
laws of that State, is liable to tax therein by reason of his domicile,
residence, place of management or any other criterion of a similar nature.
2.
Where by reason of the provisions of paragraph 1, an
individual is a resident of both the Contracting States, then his status shall
be determined as follows:
a.
he shall be deemed to be a resident of that State in
which he has a permanent home available to him; if he has a permanent home
available to him in both the 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 the 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.
3.
Where by reason of the provisions of paragraph 1 a
person other than an individual is a resident of both the Contracting States,
then he shall be deemed to be a resident of the State in which his place of
effective management is situated.
Article 5 PERMANENT
ESTABLISHMENT
1.
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, quarry or any other place
of extraction of natural resources;
g.
a building site or a construction or an assembly
project or supervisory activities in connection therewith; but only where such
site, project or activity continues for a period of more than twelve months.
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 or delivery of goods or merchandise belonging to the
enterprise;
b.
the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of storage, display or
delivery;
c.
the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of processing by another
enterprise;
d.
the maintenance of a fixed place of business solely for
the purpose of purchasing goods or merchandise, or of collecting information,
for the enterprise;
e.
the maintenance of a fixed place of business solely for
the purpose of carrying on for the enterprise, any other activity of a
preparatory or auxiliary character;
4.
Notwithstanding the provisions of paragraphs 1 and 2,
where a person--other than an agent of independent status to whom paragraph 5
applies is acting on behalf of an enterprise and has, and habitually exercises,
in a Contracting State an authority to conclude contracts on behalf of the
enterprise, that enterprise shall be deemed to have a permanent establishment
in that State in respect of any activities which that person undertakes for the
enterprise, unless the activities of such person are limited to those mentioned
in paragraph 3 of this article, 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.
5.
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, he will not be considered an agent of an independent status
within the meaning of this paragraph.
6.
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 6 INCOME FROM
IMMOVABLE PROPERTY
1.
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 be taxed in that other State.
2.
The term "immovable property" shall have the
meaning which it has under the law of the Contracting State in which the
property in question is situated. The term shall in any case include property
accessory to immovable property, livestock and equipment used in agriculture
and forestry, rights to which the provisions of general law respecting landed
property apply, usufruct of immovable property and rights to variable or fixed
payments as consideration for the working
of, or the right to work, mineral deposits,
sources and other natural resources. Ships, boats and aircraft shall not be
regarded as immovable property.
3.
The provisions of paragraph 1 shall apply to income
derived from the direct use, letting, or use in any other form of immovable
property.
4.
The provisions of paragraphs 1 and 3 shall also apply
to the income from immovable property of an enterprise and to income from
immovable property used for the performance of independent personal services.
Article 7 BUSINESS PROFITS
1.
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 directly or indirectly to that permanent establishment.
The words "directly or indirectly"
mean, for the purposes of this article, that where a permanent establishment
takes an active part in negotiating, concluding or fulfilling contracts entered
into by the enterprise, then notwithstanding that other parts of the enterprise
have also participated in those transactions, there shall be attributed to the
permanent establishment that proportion of profits of the enterprise arising
out of those contracts as the contribution of the permanent establishment to
those transactions bears to that of the enterprise as a whole.
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 deduction expenses which are incurred
for the purposes of the business of the permanent establishment, including
executive and general administrative expenses so incurred, whether in the State
in which the permanent establishment is situated or elsewhere in accordance
with the provisions of and subject to the limitations of the tax laws of that
State.
4.
In so far as it has been customary in a 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.
Article 8 SHIPPING, AIR AND
MOTOR TRANSPORT
1.
Profits derived by an enterprise of a Contracting State
derived from operation of aircraft or motor vehicles 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.
3.
For the purposes of this article, interest on funds connected
with the operation of aircraft or motor vehicles in international traffic shall
be regarded as profits derived from the operation of such aircraft or motor
vehicles, and the provisions of Article 11 shall not apply in relation to such
interest.
4.
The term "operation of aircraft" shall mean
business of transportation by air of passengers, mail, livestock or goods
carried on by the owners or lessees or charterers of aircraft, including the
sale of tickets for such transportation on behalf of other enterprises, the
incidental lease of aircraft and any other activity directly connected with
such transportation.
5.
Profits derived by an enterprise from operation of
ships shall be taxable in the Contracting States in accordance with their
domestic laws.
Article 9 ASSOCIATED
ENTERPRISES
1. 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, or
b.
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 10
DIVIDENDS
1.
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 15 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 from other rights, not being debt-claims
participating in profits as well as the 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 15, as the case may
be, shall apply.
5.
Where a company which is a resident of a Contracting
State, derives profits or income from the other Contracting State, that other
State may not impose any tax on the dividends paid by the company, except in so
far as such dividends are paid to a resident of that other State or in so far
as the holding in respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base situated in 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 11
INTEREST
1.
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 15 per cent. of the gross amount of the interest.
3.
Notwithstanding the provisions of paragraph 2,
a.
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; or
ii.
the Central Bank of the other Contracting State;
b.
interest arising in a Contracting State shall be exempt
from tax in that Contracting State to the extent approved by the Government of
that State if it is derived and beneficially owned by any person other than a
person referred to in sub-paragraph (a) who is a resident of the other
Contracting State provided that the transaction giving rise to the debt-claim
has been approved in this regard by the Government of the first-mentioned
Contracting State.
4.
The term "interest" as used in this article
means income from debt-claims of every kind, whether or not secured by mortgage
and whether or not carrying a right to participate in the debtor's profits, and
in particular, income from Government securities and income from bonds or
debentures, including premiums and prizes attaching to such securities, bonds
or debentures. Penalty charges for late payment shall not be regarded as
interest for the purpose of this article.
5.
The provisions of paragraphs 1 and 2 shall not apply if
the beneficial owner of the interest, being a resident of a Contracting State,
carries on business in the other Contracting State in which the interest
arises, through a permanent establishment situated therein, or performs in that
other State independent personal services from a fixed base situated therein,
and the debt-claim in respect of which the interest is paid effectively
connected with such permanent establishment or fixed base. In such case the provisions
of Article 7 or Article 15, 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 in 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.
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 payments shall remain taxable according to the laws of each
Contracting State, due regard being had to the other provisions of this
Agreement.
Article 12 ROYALTIES
1.
Royalties 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 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 the tax so
charged shall not exceed 15 per cent. of the gross amount of royalties.
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, any copyright of literary, article or scientific work, including
cinematograph films, or films or tapes used for radio or television
broadcasting, any patent, trade mark, design or model, plan, secret formula or
process or for the use of, or the right to use, industrial, commercial or
scientific equipment, or for information concerning industrial, commercial or
scientific experience.
4.
The provisions of paragraphs 1 and 2 shall not apply,
if the beneficial owner of the royalties being a resident of a Contracting
State carries on business in the other Contracting State in which the royalties
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 are paid is
effectively connected with such permanent establishment or fixed base. In such
a case, the provisions of Article 7 or Article 15, as the case may be, shall
apply.
5.
Royalties 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 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 was incurred and such royalties are
borne by such permanent establishment or fixed base, then such royalties 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
payer and the beneficial owner or between both of them and some other person,
the amount of royalties, 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 payment shall remain taxable according to the
laws of each Contracting State, due regard being had to the other provisions of
this Agreement.
Article 13 TECHNICAL FEES
1.
Technical fees 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 technical fees 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 technical fees, the tax so
charged shall not exceed 15 per cent. of the gross amount of the technical
fees.
3.
The term "technical fees" as used in this
article means payments of any kind to any person other than to an employee of
the person making the payments, in consideration for any services of a
technical, managerial or consultancy nature.
4.
The provisions of paragraphs 1 and 2 shall not apply,
if the beneficial owner of the technical fees being a resident of a Contracting
State carries on business in the other Contracting State in which the technical
fees arise through a permanent establishment situated therein, or performs in
that other State independent personal services and the technical fees are
effectively connected with such permanent establishment or such services. In
such case the provisions of Article 7 or Article 15, as the case may be, shall
apply.
5.
Technical fees 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 statutory body thereof, or a resident of
that State. Where, however, the person paying the technical fees whether he is
a resident of a Contracting State or not, has in a resident of a Contracting
State a permanent establishment or a fixed base in connection with which the
obligation to pay the technical fees was incurred and such technical fees are
borne by that permanent establishment or fixed base then such technical fees
shall be deemed to arise in the Contracting State in which such permanent
establishment 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 persons
the amount of the technical fees paid, exceeds for whatever reasons, 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 Agreement.
Article 14 CAPITAL GAINS
1.
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 Contracting 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 purposes of performing independent
personal services, including such gains from the alienation of such a permanent
establishment (alone or with the whole enterprise) 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 directly or indirectly
principally of immovables 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 shall be taxable only in the
Contracting State of which the alienator is a resident.
Article 15 INDEPENDENT
PERSONAL SERVICES
1.
Income derived by a resident of a Contracting State in
respect 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 Contracting State; or
b.
if his stay in the other Contracting State is for a
period or periods amounting to or exceeding in the aggregate 183 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.
2.
The term "professional services" includes
especially independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of physicians, surgeons,
lawyers, engineers, architects, dentists, accountants and other such
professions.
Article 16 DEPENDENT PERSONAL
SERVICES
1.
Subject to the provisions of Articles 17, 18 19, 20,
21, and 22, 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 2,
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 Contracting State
for a period or periods not exceeding in the aggregate 183 days in the relevant
fiscal year; and
b.
the remuneration is paid by, or on behalf of an
employer who is not a resident of the other Contracting State; and
c.
the remuneration is not borne by a permanent
establishment or a fixed base which the employer has in the other Contracting
State.
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 shall be taxable only in that State.
Article 17
DIRECTORS' FEES
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 18 INCOME EARNED BY
ENTERTAINERS AND SPORTSPERSONS
1.
Notwithstanding the provisions of Articles 15 and 16,
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 the personal activities as such exercised in the other
Contracting State, may be taxed in that other State.
2.
Where income in respect of personal activities
exercised by an entertainer or 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, 15 and 16, be taxed in the
Contracting State in which the activities of the entertainer or sportsperson
are exercised.
3.
Notwithstanding the provisions of paragraph 1, income
derived by an entertainer 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 Contracting State, if the
activities in the other Contracting State are supported wholly or substantially
from the public funds of the first-mentioned Contracting State, including any
of its political sub-divisions or local authorities.
4.
Notwithstanding the provisions of paragraph 2 and
Article 7, 15 and 16, where income in respect of personal activities exercised
by an entertainer or a sports person in his capacity as such in a Contracting
State accrues not to the entertainer or sports person 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 subdivisions or local
authorities.
Article 19 REMUNERATION AND PENSIONS IN RESPECT OF GOVERNMENT
SERVICE
1.
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 subdivision 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; or ii. did not become a resident of
that State solely for the purpose of rendering the services.
2.
a.
Any pension paid by, or out of funds created by, a
Contracting State or political sub-division, or a local authority thereof to
any individual in respect of services rendered to that State or sub-division or
local authority thereof 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.
3.
The provisions of Articles 16, 17 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. 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
or local authorities.
Article 20 NON-GOVERNMENT
PENSIONS AND ANNUITIES
1.
Any pension, other than a pension referred to in
Article 19, or any annuity derived by a resident of a Contracting State from
sources within the other Contracting State may be taxed only in the
firstmentioned Contracting 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's worth.
Article 21 PAYMENTS RECEIVED
BY STUDENTS AND APPRENTICES
1.
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 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; and
b.
remuneration from employment in that other State, in an
amount not exceeding US dollar 700 or its equivalent amount during any fiscal
year, as that case may be, provided that such employment is directly related to
his studies or is undertaken for the purpose of his maintenance.
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 three consecutive years from the date of
his first arrival in that other Contracting State.
Article 22 PAYMENTS RECEIVED
BY PROFESSORS, TEACHERS AND RESEARCH SCHOLARS
1.
A professor or teacher is or was a resident of the
Contracting State immediately 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 21, an
individual shall be deemed to be a resident of a Contracting State if he is
resident in that State or in the immediately preceding fiscal year.
4.
For the purposes of paragraph 1 "approved
institution" means an institution which has been approved in this regard
by the competent authority of the concerned Contracting State. Article 23
OTHER INCOME
1.
Subject to the provisions of paragraph 2, items of
income of a resident of a Contracting State, wherever arising, which are not
expressly dealt with in the foregoing articles of this Agreement, shall be
taxable only in that Contracting State.
2.
The provisions of paragraph 1 shall not apply to
income, other than income from immovable property as defined in paragraph 2 of
Article 6, if the recipient of such income being a resident of a Contracting
State carries on business in the other Contracting State through a permanent
establishment situated herein, 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 a case the provisions of Article
7 or Article 15, as the case may be, shall apply.
3.
Notwithstanding the provisions of paragraphs 1 and 2,
items of income of a resident of a Contracting State not dealt with in the
foregoing article of this Agreement and arising in the other Contracting State
may also be taxed in that other Contracting State.
Article 24 CAPITAL
1.
Capital represented by immovable property referred to
in Article 6, owned by a resident of a Contracting State and situated in the
other Contracting State, may be taxed in that other State.
2.
Capital represented by 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 by movable property
pertaining to a fixed based available to a resident of a Contracting State in
the other Contracting State for the purpose of performing independent personal
services may be taxed in that other State.
3.
Capital represented by ships, aircraft or motor vehicle
operated in international traffic and by movable property pertaining to the
operation of such ships, aircraft or motor vehicles, shall be taxable only in
the Contracting State of which the enterprise owning such property is a
resident.
4.
All other elements of capital of a resident of a
Contracting State shall be taxable only in that State.
Article 25 AVOIDANCE OF DOUBLE
TAXATION
1.
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 Agreement.
2.
Where a resident of India derives income or owns
capital which, in accordance with the provisions of this Agreement, may be
taxed in Uzbekistan, India shall allow as a deduction from the tax on the
income of that resident an amount equal to the income-tax paid in Uzbekistan,
whether directly or by deduction; and as a deduction from the tax on the
capital of that resident an amount equal to the capital tax paid in Uzbekistan.
Such deduction in either case shall not, however, exceed that part of
income-tax or tax on capital (as paid before the deduction is given), which is
attributable to the income or the capital which may be taxed in Uzbekistan.
3.
In the case of Uzbekistan the double taxation shall be
avoided by a method which is identical to that mentioned in paragraph 2.
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
Agreement, 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 26 NON-DISCRIMINATION
1.
The national 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.
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 an
enterprise of that other State carrying on the same activities in the same
circumstances. This provision shall not be construed as preventing a
Contracting State from charging the profits of a permanent establishment which
an enterprise of the other Contracting State has in the first-mentioned
Contracting State at a rate higher than that imposed on the profits of a
similar enterprise of the first-mentioned State nor as being in conflict with
the provisions of paragraph 3 of Article 7 of this Agreement.
3.
Nothing contained in this article shall be construed as
obliging a Contracting State to grant to persons not resident in that State any
personal allowances, reliefs, reductions and deductions for taxation purposes
which are by law available only to persons who are so resident.
4.
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 Contracting 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 that first-mentioned State
are or may be subjected in the same circumstances.
5.
In this article, the term "taxation" means
taxes which are the subject of this Agreement.
Article 27 MUTUAL AGREEMENT
PROCEDURE
1.
Where a resident of a Contracting State considers that
the actions of one or both of the Contracting States result or will result for
him in taxation not in accordance with this Agreement, he may notwithstanding
the remedies provided by the national laws of those States, present his case to
the competent authority of the State of which he is a resident. The case must
be presented within three years from the date of receipt of the first notice of
the action resulting in taxation not in accordance with the provisions of the
Agreement.
2.
The competent authority shall endeavour, if the
objection appears to it to be justified and if it is not itself able to arrive
at a satisfactory solution, to resolve the case by mutual agreement with the
competent authority of the other Contracting State, with a view to the
avoidance of taxation not in accordance with Agreement. Any Agreement reached
shall be implemented notwithstanding any time limits in the national laws of
the Contracting State.
3.
The competent authorities of the Contracting States
shall endeavour to resolve by mutual agreement any difficulties or doubts
arising as to the interpretation or application of the Agreement. They may also
consult together for the elimination of double taxation in cases not provided
for in the Agreement.
4.
The competent authorities of the Contracting States may
communicate with each other directly for the purpose of reaching an Agreement
in the sense of the preceding paragraphs. When it seems advisable in order to
reach agreement to have an oral exchange of opinions, such exchange may take
place through a commission consisting of representatives of the competent
authorities of the Contracting States.
Article 28 EXCHANGE OF
INFORMATION
1.
The competent authorities of the Contracting States
shall exchange such information (including documents) as is necessary for
carrying out the provisions of the Agreement or of the domestic laws of the
Contracting States concerning taxes covered by the Agreement insofar as the
taxation thereunder is not contrary to the Agreement, in particular for the
prevention of fraud or evasion of such taxes. 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. However, if the information is
originally regarded as secret in the transmitting State, it 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 which are
the subject of the Agreement. Such persons or authorities shall use the
information only for such purposes. They may disclose the information in public
court proceedings in judicial decisions. The competent authorities shall
through consultation, develop appropriate conditions, methods and techniques
concerning the matter in respect of which such exchange of information shall be
made, including, where appropriate, exchange of information regarding tax avoidance.
2.
The exchange of information or documents shall be
either on a routine basis or on request with reference to particular cases or
both. The competent authorities of the Contracting States shall agree from time
to time on the list of the information or documents which shall be furnished on
a routine basis.
3.
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 the 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 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 29
DIPLOMATIC AND CONSULAR ACTIVITIES
Nothing in this Agreement shall affect the
fiscal privileges of diplomatic or consular officials under the general rules
of international law or under the provisions of special agreements.
Article 30 ENTRY INTO FORCE
Each of
the Contracting States shall notify to the other the completion of the procedures
required by it law for the bringing into force of this Agreement. This
Agreement shall enter into force on the date of the later of these
notifications and shall thereupon have effect:
a.
In India: in respect of income arising in any previous
year beginning on or after the 1st April, 1993, and in respect of capital which
is held at the expiry of any previous year beginning on or after 1st April,
1993;
b.
In Uzbekistan: in respect of income arising in any year
of income beginning on or after the 1st January, 1993, and in respect of
capital which is held at the expiry of any year of income beginning on or after
1st January, 1993.
Article 31 TERMINATION
This Agreement shall remain in force
indefinitely but either of the Contracting States may, on or before 30th June
in any calendar year beginning after the expiration of a period of five years
from the date of its entry into force, give the other Contracting State through
Diplomatic Channels, written notice of termination and in such event, this
Agreement shall cease to have effect:
a.
in India: in respect of income arising in any previous
year beginning on of after the 1st April next following the calendar year in
which the notice is given and in respect of capital which is held at the expiry
of any previous year beginning on or after 1st April next following the
calendar year in which the notice of termination is given;
b.
in Uzbekistan: in respect of income arising in any year
of income beginning on or after the 1st January next following the calendar
year in which the notice is given and in respect of capital which is held at
the expiry of any year income next following the calendar year in which the
notice of termination is given.
In
witness thereof the undersigned, being duly authorised thereto, have signed
the present Agreement.
Done
at New Delhi in duplicate this 29th day of July, One thousand nine hundred and
ninety-three in the Hindi, Uzbek and English languages, all the texts being
equally authentic. In case of divergence between any of the texts, the English
text shall be the operative one.
(Sd.)............
For the Government of the Republic of India
(Sd.)............
For the Government of the Republic of
Uzbekistan.
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