PROTOCOLAMENDING THE CONVENTIONBETWEEN THE GOVERNMENT OF JAPANAND THE GOVERNMENT OF THE REPUBLIC OF INDIAFOR THE AVOIDANCE OF DOUBLE TAXATIONAND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME

PROTOCOLAMENDING THE CONVENTIONBETWEEN THE GOVERNMENT OF JAPANAND THE GOVERNMENT OF THE REPUBLIC OF INDIAFOR THE AVOIDANCE OF DOUBLE TAXATIONAND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME
The Government of Japan and the Government of theRepublic of India,
Desiring to amend the Convention between theGovernment of Japan and the Government of the Republic ofIndia for the Avoidance of Double Taxation and thePrevention of Fiscal Evasion with respect to Taxes on
Income, signed at New Delhi on 7th March, 1989, as amended
by the Protocol signed at Tokyo on 24th February, 2006
(hereinafter referred to as “the Convention”),
Have agreed as follows:
ARTICLE 1
Paragraphs 3 and 4 of Article 11 of the Convention
shall be deleted and replaced by the following:“3.
Notwithstanding the provisions of paragraph 2,interest arising in a Contracting State shall betaxable only in the other Contracting State if:(a)the interest is derived and beneficiallyowned by the Government of that other
Contracting State, a political sub-divisionor local authority thereof, or the central
bank of that other Contracting State or any
financial institution wholly owned by that
Government; or(b)the interest is derived and beneficiallyowned by a resident of that other
Contracting State with respect to debtclaims guaranteed, insured or indirectly
financed by the Government of that other
Contracting State, a political sub-divisionor local authority thereof, or the central
bank of that other Contracting State or any
financial institution wholly owned by thatGovernment.

- 1 -4.
For the purposes of paragraph 3, the terms “thecentral bank” and “financial institution wholly ownedby that Government” mean:
(a)

(b)

in the case of Japan:(i)the Bank of Japan;(ii)

the Japan Bank for International
Cooperation;(iii)

the Japan International Cooperation
Agency;(iv)

the Nippon Export and Investment
Insurance; and(v)such other financial institution thecapital of which is wholly owned by theGovernment of Japan as may be agreed
upon from time to time between theGovernments of the Contracting States;in the case of India:(i)

Reserve Bank of India;(ii)

Export-Import Bank of India;(iii)

General Insurance Corporation of India;(iv)

New India Assurance Company Limited;
and(v)

such other financial institution thecapital of which is wholly owned by theGovernment of India as may be agreed
upon from time to time between theGovernments of the Contracting States.”
ARTICLE 2

Article 26 of the Convention shall be deleted andreplaced by the following:- 2 -“Article 261.
The competent authorities of the Contracting
States shall exchange such information (including
documents or certified copies of the documents) as isforeseeably relevant for carrying out the provisionsof this Convention or to the administration orenforcement of the domestic laws concerning taxes ofevery kind and description imposed on behalf of theContracting States, or of their political subdivisions or local authorities, insofar as thetaxation thereunder is not contrary to the Convention.
The exchange of information is not restricted by
Articles 1 and 2.
2.
Any information received under paragraph 1 by aContracting State shall be treated as secret in thesame manner as information obtained under the domestic
laws of that Contracting State and shall be disclosed
only to persons or authorities (including courts andadministrative bodies) concerned with the assessment
or collection of, the enforcement or prosecution in
respect of, the determination of appeals in relation
to the taxes referred to in paragraph 1, or theoversight of the above. Such persons or authorities
shall use the information only for such purposes.
They may disclose the information in public court
proceedings or in judicial decisions. Notwithstanding
the foregoing, information received by a Contracting
State may be used for other purposes when suchinformation may be used for such other purposes under
the laws of both Contracting States and the competentauthority of the supplying Contracting Stateauthorises such use.
3.
In no case shall the provisions of paragraphs 1
and 2 be construed so as to impose on a Contracting
State the obligation:(a)

to carry out administrative measures atvariance with the laws and administrative
practice of that or of the other Contracting
State;(b)

to supply information which is not
obtainable under the laws or in the normal
course of the administration of that or of
the other Contracting State;- 3 -(c)to supply information which would disclose
any trade, business, industrial, commercial
or professional secret or trade process, orinformation the disclosure of which would becontrary to public policy.

4.
If information is requested by a Contracting
State in accordance with this Article, the other
Contracting State shall use its information gathering
measures to obtain the requested information, eventhough that other Contracting State may not need suchinformation for its own tax purposes. The obligation
contained in the preceding sentence is subject to thelimitations of paragraph 3 but in no case shall suchlimitations be construed to permit a Contracting Stateto decline to supply information solely because it has
no domestic interest in such information.
5.
In no case shall the provisions of paragraph 3 beconstrued to permit a Contracting State to decline tosupply information solely because the information isheld by a bank, other financial institution, nominee
or person acting in an agency or a fiduciary capacity
or because it relates to ownership interests in aperson.”
ARTICLE 3
A new Article shall be added after Article 26 of theConvention as follows:“Article 26 A1.
The Contracting States shall lend assistance toeach other in the collection of revenue claims. Thisassistance is not restricted by Articles 1 and 2. The
competent authorities of the Contracting States may bymutual agreement settle the mode of application ofthis Article.
2.
The term “revenue claim” as used in this Articlemeans an amount owed in respect of the taxes coveredby Article 2 and the following taxes imposed on behalfof the Contracting States, or of their political subdivisions or local authorities, insofar as thetaxation thereunder is not contrary to this Conventionor any other instrument to which the Contracting
States are parties, as well as interest,
administrative penalties and costs of collection orconservancy related to such amount:- 4 -(a)

(b)

(c)

in Japan:(i)the consumption tax;(ii)

the inheritance tax; and(iii)the gift tax;

in India:(i)the wealth tax;(ii)

the excise duty;(iii)

the service tax;(iv)

the sales tax; and(v)the value added tax;

any other tax agreed upon between theGovernments of the Contracting States.

3.
When a revenue claim of a Contracting State isenforceable under the laws of that Contracting Stateand is owed by a person who, at that time, cannot,
under the laws of that Contracting State, prevent its
collection, that revenue claim shall, at the requestof the competent authority of that Contracting State,
be accepted for purposes of collection by thecompetent authority of the other Contracting State.
That revenue claim shall be collected by that other
Contracting State in accordance with the provisions of
its laws applicable to the enforcement and collectionof its own taxes as if the revenue claim were arevenue claim of that other Contracting State that met
the conditions allowing that other Contracting Stateto make a request under this paragraph.

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When a revenue claim of a Contracting State is aclaim in respect of which that Contracting State may,under its law, take measures of conservancy with aview to ensure its collection, that revenue claim
shall, at the request of the competent authority ofthat Contracting State, be accepted for purposes oftaking measures of conservancy by the competentauthority of the other Contracting State. That other
Contracting State shall take measures of conservancy
in respect of that revenue claim in accordance withthe provisions of its laws as if the revenue claim
were a revenue claim of that other Contracting Stateeven if, at the time when such measures are applied,
the revenue claim is not enforceable in the firstmentioned Contracting State or is owed by a person who
has a right to prevent its collection.
5.
Notwithstanding the provisions of paragraphs 3
and 4, a revenue claim accepted by a Contracting Statefor purposes of paragraph 3 or 4 shall not, in thatContracting State, be subject to the time limits oraccorded any priority applicable to a revenue claim
under the laws of that Contracting State by reason of
its nature as such. In addition, a revenue claim
accepted by a Contracting State for the purposes ofparagraph 3 or 4 shall not, in that Contracting State,
have any priority applicable to that revenue claim
under the laws of the other Contracting State.
6.
Notwithstanding the provisions of paragraph 5,
acts carried out by a Contracting State in thecollection of a revenue claim accepted by thatContracting State for purposes of paragraph 3 or 4,
which, if they were carried out by the other
Contracting State, would have the effect of suspending
or interrupting the time limits applicable to therevenue claim according to the laws of that other
Contracting State, shall have such effect under thelaws of that other Contracting State. The firstmentioned Contracting State shall inform the other
Contracting State about such acts.
7.
Proceedings with respect to the existence,
validity or the amount of a revenue claim of aContracting State shall not be brought before thecourts or administrative bodies of the other
Contracting State.

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8.
Where, at any time after a request has been madeby a Contracting State under paragraph 3 or 4 andbefore the other Contracting State has collected andremitted the relevant revenue claim to the firstmentioned Contracting State, the relevant revenue
claim ceases to be(a)in the case of a request under paragraph 3,
a revenue claim of the first-mentioned
Contracting State that is enforceable under
the laws of that Contracting State and isowed by a person who, at that time, cannot,
under the laws of that Contracting State,prevent its collection, or(b)in the case of a request under paragraph 4,
a revenue claim of the first-mentioned
Contracting State in respect of which thatContracting State may, under its laws, takemeasures of conservancy with a view toensure its collection

the competent authority of the first-mentioned
Contracting State shall promptly notify the competentauthority of the other Contracting State of that factand, at the option of the other Contracting State, thefirst-mentioned Contracting State shall either suspend
or withdraw its request.
9.
In no case shall the provisions of this Article
be construed so as to impose on a Contracting Statethe obligation:(a)

to carry out administrative measures atvariance with the laws and administrative
practice of that or of the other Contracting
State;(b)

to carry out measures which would becontrary to public policy;(c)

to provide assistance if the other
Contracting State has not pursued all
reasonable measures of collection orconservancy, as the case may be, available
under its laws or administrative practice;

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(d)

to provide assistance in those cases where
the administrative burden for thatContracting State is clearly
disproportionate to the benefit to bederived by the other Contracting State.”
ARTICLE 4

1.
This Protocol shall be approved in accordance with thelegal procedures of each of the Contracting States andshall enter into force on the thirtieth day after the dateof exchange of diplomatic notes indicating such approval.
The provisions of paragraphs 3 and 4 of Article 11 of2.
the Convention, as amended by Article 1 of this Protocol
shall have effect:
(a)

(b)

in Japan:(i)with respect to taxes levied on the basis ofa taxable year, for taxes for any taxable
years beginning on or after 1st January of
the calendar year next following that inwhich the Protocol enters into force; and(ii)with respect to taxes not levied on thebasis of a taxable year, for taxes levied on
or after 1st January of the calendar year
next following that in which the Protocol
enters into force; andin India:(i)with respect to taxes withheld at source,
for amounts paid or credited on or after 1st
April of the calendar year next followingthat in which the Protocol enters intoforce; and(ii)with respect to taxes on income for any
previous year beginning on or after 1st
April of the calendar year next followingthat in which the Protocol enters intoforce.

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The provisions of Article 26 of the Convention, asamended by Article 2 of this Protocol, and Article 26A ofthe Convention, as added by Article 3 of the Protocol,
shall have effect from the date of entry into force of theProtocol, without regard to the date on which the taxes arelevied or the taxable year to which the taxes relate.
4.
This Protocol shall remain in effect as long as theConvention remains in force.
IN WITNESS WHEREOF the undersigned, duly authorised
thereto by their respective Governments, have signed thisProtocol.
DONE in duplicate at New Delhi this eleventh day ofDecember, 2015, in the Japanese, Hindi and English
languages, all texts being equally authentic. In case ofany divergence of interpretations, the English text shallprevail.

For the Governmentof Japan:
K. Hiramatsu

For the Governmentof the Republic of India:
Hasmukh Adhia- 9 -