Source: http://www.swisstaxnetwork.ch/gesetze/swiss-dta/dta-india---dba-indien---cdi-inde
Timestamp: 2019-02-19 21:23:22
Document Index: 398661800

Matched Legal Cases: ['Art. 4', 'Art. 8', 'Art. 12', 'Art. 14', 'Art. 15', 'Art. 16', 'Art. 17', 'Art. 18', 'Art. 20', 'Art. 21', 'Art. 22', 'Art. 23', 'Art. 24', 'Art. 25', 'Art. 26', 'Art. 27', 'Art. 29']

DTA India - DBA Indien - CDI Inde - swisstaxnetwork.ch
DTA India - DBA Indien - CDI Inde
1 DTA India - DBA Indien - CDI Inde
1[( a)
the term "India" means the territory of India and includes the territorial sea and the air space above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdictions, according to the Indian law and in accordance with international law, including the UN Convention on the Law of the Sea;]
1a [ (i)
the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;]
1. Substituted by Notification No. GSR 74(E), dated 7-2-2001.
1a. Substituted by Notification No. SO 2903(E), dated 27-12-2011. Prior to its substitution, sub-paragraph (i) read as under :
Art. 4 Fiscal domicile
1[( l)
the furnishing of technical services, other than services as defined in Article 12, within a Contracting State by an enterprise through employees or other personnel, but only if:—]
1[( 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[4. 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.]
2[5.] A person acting in a Contracting State for or on behalf of an enterprise of the other Contracting State 3[...other than an agent of an independent status to whom paragraph 6 applies...] shall be deemed to be a permanent establishment of that enterprise in the first-mentioned State if :
2[6.] 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, where 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 or for the enterprise and other enterprises which are controlled by it or have a controlling interest in it, he would not be considered an agent of an independent status within the meaning of this paragraph.
2[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 Contracting State (whether through a permanent establishment or otherwise), shall not, of itself, constitute for either company a permanent establishment of the other.
1. Inserted by Notification No. GSR 74(E), dated 7-2-2001.
2. Paragraphs 4 to 6 renumbered as paragraphs 5 to 7, respectively, by the Notification No. GSR 74(E), dated 7-2-2001.
3.Substituted for "... other than an agent of an independent status to whom paragraph 5 applies...", by the Notification No. GSR 74(E), dated 7-2-2001.
4[1. - Income from immovable property may also be taxed in the Contracting State in which such property is situated.]
4. Substituted, by the Notification No. GSR 74(E), dated 7-2-2001.
5 [ 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 be taxed in the other State but only so much of them as is attributable to that permanent establishment. ]
5. Substituted by Notification No.SO 2903(E), dated 27-12-2011. Prior to its substitution, paragraph (1) read as under :
6[Art. 8 Shipping and air transport
The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.]
6. Substituted by Notification No. SO 2903(E), dated 27-12-2011. Prior to its substitution, Article 8; as amended by Notification No. GSR 74(E), dated 7-2-2001; read as under :
2[1.] - Where-
2[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 an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustments, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall, if necessary consult each other.]
2. Inserted, by Notification No. GSR 74(E), dated 7-2-2001.
1[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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the dividends.]
1[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.]
1[2. However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.]
4[5 [3.] Notwithstanding the provisions of paragraph 2 :
interest arising in Switzerland and paid to a resident of India shall be taxable only in India if it is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the Government, a political sub-division, a statutory body or a local authority of India or the Export-Import Bank of India, the Reserve Bank of India, the Industrial Finance Corporation of India, the Industrial Development Bank of India, the National Housing Bank, the Small Industries Development Bank of India or by any institution specified and agreed in letters exchanged between the competent authorities of the Contracting States;]
5a [ (c)
interest arising in a Contracting State and paid to a resident of the other Contracting State engaged in the operation of ships or aircraft in international traffic shall be taxable only in that other State to the extent that such interest is paid on funds connected with such activity; ]
1[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.
2[1[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 a case the provisions of Article 7 or Article 14, as the case may be, shall apply.
1[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 Contracting State in which the permanent establishment or fixed base is situated.]
1[7.] Where, owing to a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest paid, 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 that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Agreement.
3.Paragraph 3 omitted, by Notification No. GSR 74(E), dated 7-2-2001.
4. Substituted, by Notification No. GSR 74(E), dated 7-2-2001.
5. Paragraph 4 renumbered as paragraph 3, by Notification No. GSR 74(E), dated 7-2-2001.
5a. Substituted by Notification No. SO 2903(E), dated 27-12-2011. Prior to its substitution, sub-paragraph (c) read as under :
"(c) interest arising in a Contracting State and paid to a resident of the other Contracting State engaged in the operation of aircraft in international traffic shall be taxable only in that other State to the extent that such interest is paid on funds connected with such activity;"
1.Paragraphs 5 to 8 renumbered as paragraphs 4 to 7, respectively, by Notification No. GSR 74(E), dated 7-2-2001.
2. Paragraphs 5 and 6 substituted, by Notification No. GSR 74(E), dated 7-2-2001.
3[Art. 12 Royalties and fees for technical services
7. Royalties and fees for technical services shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority 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.]
1. Substituted for "included" by Notification No. GSR 74(E), dated 7-2-2001.
3. Heading and paragraphs 1 to 7 substituted, by Notification No. GSR 74(E), dated 7-2-2001.
2[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.]
2a [ 3.Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft shall be taxable only in that State.]
2[5. Gains from the alienation of shares other than those mentioned in Paragraph 4, of a company which is a resident of a Contracting State:
In this case the provisions of sub-paragraph (b) of paragraph 1, of Article 23 shall apply.]
2. Substituted, by Notification No. GSR 74(E), dated 7-2-2001.
2a. Substituted by Notification No. SO 2903(E), dated 27-12-2011. Prior to its substitution, paragraph (3) read as under :
"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 in which the place of effective management of the enterprise is situated."
3[Art. 14 Independent personal services
2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, surgeons, dentists and accountants.]
3. Inserted, by Notification No. GSR 74(E), dated 7-2-2001.
1[2Art. 15 Dependent personal services
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.]
1. Article 14 renumbered as article 15, by Notification No. GSR 74(E), dated 7-2-2001
2. Article 14 renumbered as article 15, by Notification No. GSR 74(E), dated 7-2-2001
3Art. 16 Directors' fees
3. Articles 15 to 18 renumbered as articles 16 to 19, by Notification No. GSR 74(E), dated 7-2-2001
3Art. 17 Artistes and athletes
3Art. 18 Pensions and annuities
1Art. 20 Student and apprentices
1. Articles 19 and 20 renumbered as articles 20 and 21 by Notification No. GSR 74(E), dated 7-2-2001.
Art. 21 Professors, teachers and researchers
2Art. 22 Capital
3. Notwithstanding the provisions of paragraph 1, if a resident of a Contracting State derives income from sources within the other Contracting State in the form 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 that other Contracting State.]
Art. 23 Elimination of double taxation
3 [ ***]
3. Article 21 renumbered as article 23, by Notification No. GSR 74(E), dated 7-2-2001
4. "and (d)" omitted, by Notification No. GSR 74(E), dated 7-2-2001.
2. Sub-paragraph (c) omitted by Notification No. GSR 74(E), dated 7-2-2001.
3. Omitted by Notification No.SO 2903(E), dated 27-12-2011. Prior to its omission, sub-paragraph (c); as amended by Notification No. GSR 74(E), dated 7-2-2001, read as under:
"(c) Where a resident of Switzerland derives interest dealt with in sections 10(4), 10(4B), 10(15 )(iv) and 80L of the Indian Income-tax Act, 1961 (43 of 1961) and referred to in sub-paragraph (d ) of paragraph 3 of Article 11, Switzerland shall allow, upon request, a relief to such resident of an amount equal to 10 per cent of the gross amount of the interest."
5Art. 24 Non-Discrimination
6[1. - 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 and under the same conditions 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.]
6a [ 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 as obliging a Contracting State to grant to resident of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.]
7[3. Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 8 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.]
8[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 and under the same conditions.
8[5.] In this Article, the term "taxation" means taxes which are the subject of this Agreement.
5. Article 22 renumbered as article 24, by Notification No. GSR 74(E), dated 7-2-2001.
6. Substituted, by Notification No. GSR 74(E), dated 7-2-2001.
6a. Substituted by Notification No. SO 2903(E), dated 27-12-2011. Prior to its substitution, paragraph (2) read as under :
"2. Nothing contained in this Article shall be construed as obliging a Contracting State to grant to persons not residents in that State any personal allowances, reliefs and reductions for taxation purposes which are by law available only to persons who are so resident."
7. Inserted, by Notification No. GSR 74(E), dated 7-2-2001.
8. Existing paragraphs 3 and 4 renumbered as paragraphs 4 and 5, by Notification No. GSR 74(E), dated 7-2-2001.
9Art. 25 Mutual agreement procedure
9. Article 23 renumbered as article 25, by Notification No. GSR 74(E), dated 7-2-2001.
10[Art. 26 Exchange of information
5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held 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 a person. In order to obtain such information, the tax authorities of the requested Contracting State shall, therefore, have the power to enforce the disclosure of information covered by this paragraph, notwithstanding paragraph 3 or any contrary provisions in its domestic laws. ]
10. Substituted by Notification No. SO 2903(E), dated 27-12-2011. Prior to its substitution, Article 26 as amended by Notification No. GSR 74(E), dated 7-2-2001 read as under :
1Art. 27 Diplomatic agent and consular officers
1. Articles 24 to 27 renumbered as articles 26 to 29, respectively, by Notification No. GSR 74(E), dated 7-2-2001.
1Art. 29 Termination
11 [ 1. With reference to Article 4
It is understood that paragraph 1 of Article 4, the term "resident of a Contracting State" includes a recognized pension fund or pension scheme in that Contracting State. It is further understood that a recognized pension fund or pension scheme of a Contracting State shall be regarded as any pension fund or pension scheme recognized and controlled according to statutory provisions of that State, which is generally exempt from income taxation in that State and which is operated principally to administer or provide pension or retirement benefits.]
12[2.] It is understood that the remuneration for furnishing of services covered by sub-paragraph (1) of paragraph 2 shall be taxed according to Article 7 or, on request of the enterprise, according to the rates provided for....., 1[in paragraph 2 of Article 12].
2[With respect to paragraph 5] of Article 5, it is understood that a person who habitually secures orders in a Contracting State wholly or almost wholly for the enterprise itself, shall be deemed to be a permanent establishment of that enterprise only if such person habitually represents to persons offering to buy goods or merchandise that acceptance of an order by such person constitutes that agreement of the enterprise to supply goods or merchandise under the terms and conditions specified in the order.
13 [2 .***]
14 [3. ] In the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, which are carried out by an enterprise having a permanent establishment, in a Contracting State the business profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but shall be determined only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the State where the permanent establishment is situated; the profits related to that part of the contract which is carried out outside that Contracting State by the head office of the enterprise shall be taxable only in the State of which the enterprise is a resident, provided that the amount payable is not covered under the provisions of Article 12.
1[With reference to paragraph 2 of Article 9
15[4.] It is understood that Switzerland shall only make an appropriate adjustment after consultation with the competent authority of India and after reaching an agreement on the adjustments of profits in both Contracting States.]
2[With reference to Articles 10, 11 and 12
16 [ 5. With reference to Articles 10, 11, 12 and 22
The provisions of Articles 10, 11, 12 and 22 shall not apply in respect to any dividend, interest, royalty, fees for technical services or other income paid under, or as part of a conduit arrangement. The term "conduit arrangement" means a transaction or series of transactions which is structured in such a way that a resident of a Contracting State entitled to the benefits of the Agreement receives an item of income arising in the other Contracting State but that resident pays, directly or indirectly, all or substantially all of that income (at any time or in any form) to another person who is not a resident of either Contracting State and who, if it received that item of income directly from the other Contracting State, would not be entitled under a Convention of Agreement for the avoidance of double taxation between the State in which that other person is resident and the Contracting State in which the income arises, or otherwise, to benefits with respect to that item of income which are equivalent to, or more favourable than, those available under this Agreement to a resident of a Contracting State; and the main purpose of such structuring is obtaining benefits under this Agreement.
If after the date of signature this Amending Protocol, India under any Convention, Agreement or Protocol with a third State which is a member of the OECD, restricts the scope in respect of royalties or fees for technical services than the scope for these items of income provided for in Article 12 of this Agreement, then Switzerland and India shall enter into negotiations without undue delay in order to provide the same treatment to Switzerland as that provided to the third State. ]
4[With reference to sub-paragraph (b) of paragraph 5 of Article 13
17[6.] It is understood that if at a later stage Switzerland shall introduce a capital gains tax on the alienation of shares of a Swiss company other than shares of a company mentioned in paragraph 4, paragraph 5 of Article 13 shall be replaced by the following :
"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."
In this case sub-paragraph (b) of paragraph 1 of Article 23 of the Agreement shall be deleted.]
18[7.] It is understood that gains derived from the alienation of a right or a property mentioned in paragraph 3 of Article 12 may be taxed according to Article 7 or Article 13. However, gains derived from the alienation of any such right or property which are contingent on the profits, productivity or use thereof may be taxed according to Article 12.
19 [ 8. With reference to paragraph 2 of Article 24
7[With reference to Article 25]
20[9. ] With respect to paragraph 2 it is understood that if the mutual agreement procedure has been introduced within five years from the moment when the tax assessment became final, then any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
21 [ 10. With reference to Article 26
It is understood that an exchange of information will only be requested once the requesting Contracting State has exhausted all normal procedures under its domestic laws to obtain that information.
It is understood that the competent authority of the requesting State shall provide the following information to the competent authority of the requested State when making a request for information under Article 26 of the Agreement:
the name of the person(s) under examination or investigation and, if available, other particulars facilities that person's identification such as address, date of birth, marital status, tax identification number;
the period of time for which the information is requested;
a statement of the information sought including its nature and the form in which the requesting State wishes to receive the information from the requested State;
the name and, if available, address of any person believed to be in possession of the requested information.
If specifically requested by the competent authority of the requesting Contracting State, the competent authority of the requested Contracting State shall provide information in the form of authenticated copies of documents.
The purpose of referring to information that may be foreseeably relevant is intended to provide for exchange of information in tax matters to the widest possible extent without allowing the Contracting States to engage in "fishing expeditions" or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer. While clause (b) of paragraph 10 contains important procedural requirements that are intended to ensure that fishing expeditions do not occur, sub-clause (i) through (v) nevertheless need to be interpreted in order not to frustrate effective exchange of information.
It is further understood that Article 26 of the Agreement shall not commit the Contracting States to exchange information on an automatic or a spontaneous basis.
It is understood that in case of an exchange of information, the administrative procedural rules regarding taxpayers' rights provided for in the requested Contracting State remain applicable before the information is transmitted to the requesting Contracting State. It is further understood that this provision aims at guaranteeing the taxpayer a fair procedure and not at preventing or unduly delaying the exchange of information process.]
1. Substituted for "in paragraph 2, sub-paragraph (a ) of Article 12" by Notification No. GSR 74(E), dated 7-2-2001.
2. Substituted for "With respect to paragraph 4", by Notification No. GSR 74(E), dated 7-2-2001.
1. Paragraph 3 inserted by Notification No. GSR 74(E), dated 7-2-2001.
3. Paragraph 3 renumbered as paragraph 4, by Notification No. GSR 74(E), dated 7-2-2001.
4. Inserted, by Notification No. GSR 74(E), dated 7-2-2001.
5. Paragraph 4 renumbered as paragraph 6, by Notification No. GSR 74(E), dated 7-2-2001.
6. Inserted, by Notification No. GSR 74(E), dated 7-2-2001.
7. Substituted, by Notification No. GSR 74(E), dated 7-2-2001.
8. Existing paragraph 5 renumbered as paragraph 8, by Notification No. GSR 74(E), dated 7-2-2001.
11. Inserted by Notification No.SO 2903(E), dated 27-12-2011.
12. Paragraph 1 renumbered as paragraph 2 by Notification No.SO 2903(E), dated 27-12-2011.
13. Omitted by Notification No. SO 2903(E), dated 27-12-2011. Prior to its omission, first sub-paragraph of paragraph 2, read as under :
"2. With respect to paragraph 1 of Article 7, it is understood 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. It is also understood that profits shall be regarded as attributable to the permanent establishment to the abovementioned extent, even when the contracts in question are made directly with the head office of the enterprise rather than with the permanent establishment."
14. Second sub-paragraph of paragraph 2 renumbered as paragraph 3, after deletion of first sub-paragraph of paragraph 2, by Notification No. SO 2903(E), dated 27-12-2011.
15. Paragraph 3 renumbered as paragraph 4 by Notification No. SO 2903(E), dated 27-12-2011.
16. Substituted by Notification No. SO 2903(E), dated 27-12-2011. Prior to its substitution, paragraph 4, which was amended by Notification No. GSR 74(E), dated 7-2-2001, and renumbered as paragraph 5 by Notification No.SO 2903(E), dated 27-12-2011, read as under :
"With reference to Articles 10, 11 and 12
4. If after the signature of the Protocol of 16th February, 2000 under any Convention, Agreement or Protocol between India and a third State which is a member of the OECD India should limit its taxation at source on dividends, interest, royalties or fees for technical services to a rate lower or a scope more restricted than the rate or scope provided for in this Agreement on the said items of income, then, Switzerland and India shall enter into negotiations without undue delay in order to provide the same treatment to Switzerland as that provided to the third State."
17. Paragraph 5 renumbered as paragraph 6 by Notification No. SO 2903(E), dated 27-12-2011.
18. Paragraph 6 renumbered as paragraph 7 by Notification No. SO 2903(E), dated 27-12-2011.
19. Substituted by Notification No. SO 2903(E), dated 27-12-2011. Prior to its substitution, paragraph 7, which was amended by Notification No.GSR 74(E), dated 7-2-2001, read as under :
"With reference to paragraph 4 of Article 24
7. It is understood that this provision shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first-mentioned Contracting State, nor as being in conflict with the provisions of paragraph 3 of Article 7 of this Agreement."
20. Paragraph 8 renumbered as paragraph 9 by Notification No. SO 2903(E), dated 27-12-2011.
21. Inserted by Notification No. SO 2903(E), dated 27-12-201
Desiring to conclude a Protocol (hereinafter referred to as "Amending Protocol") to amend the Agreement between the Contracting Parties for the Avoidance of Double Taxation with respect to Taxes on Income, signed at New Delhi on 2 November 1994, as amended by the supplementary Protocol signed at New Delhi on 16 February 2000 (hereinafter referred to as "the Agreement");
Article 1 : Sub-paragraph ( i) of paragraph 1 of Article 3 (General Definitions) of the Agreement shall be deleted and replaced by the following sub-paragraph:
"(i) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;"
"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 be taxed in the other State but only so much of them as is attributable to that permanent establishment."
The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency."
"(c) interest arising in a Contracting State and paid to a resident of the other Contracting State engaged in the operation of ships or aircraft in international traffic shall be taxable only in that other State to the extent that such interest is paid on funds connected with such activity;"
"3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft shall be taxable only in that State "
Article 6 : Sub-paragraph ( c) of paragraph 2 of Article 23 (Elimination of double taxation) of the Agreement shall be deleted.
"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 as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents."
The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes covered by the Agreement insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Article 1.
Any information received under paragraph 1 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 orauthorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight 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 such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorises such use.
In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held 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 a person. In order to obtain such information, the tax authorities of the requested Contracting State shall, therefore, have the power to enforce the disclosure of information covered by this paragraph, notwithstanding paragraph 3 or any contrary provisions in its domestic laws."
"1. With reference to Article 4
It is understood that paragraph 1 of Article 4, the term "resident of a Contracting State" includes a recognized pension fund or pension scheme in that Contracting State. It is further understood that a recognized pension fund or pension scheme of a Contracting State shall be regarded as any pension fund or pension scheme recognized and controlled according to statutory provisions of that State, which is generally exempt from income taxation in that State and which is operated principally to administer or provide pension or retirement benefits."
"5. With reference to Articles 10, 11, 12 and 22
If after the date of signature this Amending Protocol, India under any Convention, Agreement or Protocol with a third State which is a member of the OECD, restricts the scope in respect of royalties or fees for technical services than the scope for these items of income provided for in Article 12 of this Agreement, then Switzerland and India shall enter into negotiations without undue delay in order to provide the same treatment to Switzerland as that provided to the third State."
"8. With reference to paragraph 2 of Article 24
It is understood that the provisions of paragraph 2 of Article 24 shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first-mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first-mentioned Contracting State, nor as being in conflict with the provisions of paragraph 3 of Article 7. However the difference in tax rate shall not exceed 10 percentage points."
"10. With reference to Article 26
the name of the person(s) under examination or investigation and, if available, other particulars facilitating that person's identification such as address, date of birth, marital status, tax identification number;
The purpose of referring to information that may be foreseeably relevant is intended to provide for exchange of information in tax matters to the widest possible extent without allowing the Contracting States to engage in "fishing expeditions" or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer. While clause (b) of paragraph 10 contains important procedural requirements that are intended to ensure that fishing expeditions do not occur, sub-clauses (i) through (v) nevertheless need to be interpreted in order not to frustrate effective exchange of information.
It is understood that in case of an exchange of information, the administrative procedural rules regarding taxpayers' rights provided for in the requested Contracting State remain applicable before the information is transmitted to the requesting Contracting State. It is further understood that this provision aims at guaranteeing the taxpayer a fair procedure and not at preventing or unduly delaying the exchange of information process."
Article 14 : 1 . The Governments of the Contracting States shall notify each other through diplomatic channels that all legal requirements and procedures for giving effect to this Amending Protocol have been satisfied.
AMENDMENT NOTIFICATION NO.GSR 74(E), DATED 7-2-2001
SECTION 90 OF THE INCOME-TAX ACT, 1961 - DOUBLE TAXATION AGREEMENT - AGREEMENT FOR AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH FOREIGN COUNTRIES - SWISS FEDERAL COUNCIL - AMENDMENT IN NOTIFICATION NO.GSR 357(E), DATED 21-4-1995
NOTIFICATION NO. 35 [F. NO. 501-7-73-FTD]/GSR 74(E), DATED 7-2-2001
Whereas the annexed Protocol amending the Agreement between the Government of the Republic of India and the Government of the Swiss Federal Council for the Avoidance of Double Taxation with respect to taxes on income has come into force on 20th December, 2000, the date of the later of the notifications by both the Contracting States to each other, under Article 16 of the Protocol Amending the Agreement, of the satisfaction of all the legal requirements and procedures for giving effect to the said Protocol ;
PROTOCOL AMENDING THE AGREEMENT BETWEEN THE REPUBLIC OF INDIA AND THE SWISS CONFEDERATION FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME
Desiring to amend the Agreement between the Republic of India and the Swiss Confederation for the Avoidance of Double Taxation with respect to taxes on income, signed at New Delhi on 2nd November, 1994 (hereinafter referred to as "the Agreement"), have agreed as follows :
Sub-paragraph (a) of Paragraph 1 of Article 3 of the Agreement shall be replaced by the following :
"(a) the term "India" means the territory of India and includes the territorial sea and the air space above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdictions, according to the Indian law and in accordance with international law, including the UN Convention on the Law of the sea ; "
1. The first sentence of sub-paragraph (1) of paragraph 2 of Article 5 of the Agreement shall be replaced by the following :
"(1) the furnishing of technical services, other than services as defined in Article 12, within a Contracting State by an enterprise through employees or other personnel, but only if ....."
2. In paragraph 3 of Article 5 of the Agreement the following sub-paragraph shall be inserted after sub-paragraph (e) ;
"(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 auxilliary character."
3. The following paragraph shall be inserted after paragraph 3 of Article 5 of the Agreement :
"4. 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."
4. The existing paragraphs 4 to 6 of Article 5 of the Agreement shall become paragraphs 5 to 7.
5. In the first sentence of paragraph 5 of Article 5 of the Agreement the words "...other than an agent of an independent status to whom paragraph 5 applies..." shall be replaced by the words other than an agent of an independent status to whom paragraph 6 applies ......"
Paragraph 1 of Article 6 of the Agreement shall be replaced by the following :
1. Income from immovable property may also be taxed in the Contracting State in which such property is situated."
1. Paragraph 1 of Article 8 of the Agreement shall be replaced by the following :
"1. Profits derived by an enterprise of the Contracting State from the operation of aircraft in international traffic shall be taxable only in that State."
1. Article 9 of the Agreement shall become paragraph 1 of Article 9.
2. The following paragraph shall be inserted after paragraph 1 of Article 9 of the Agreement :
"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 firstmentioned 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 an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustments, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall, if necessary consult each other."
1. The first sentence of paragraph 2 of Article 10 of the Agreement shall be replaced by the following :
"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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the dividends."
2. Paragraph 4 of Article 10 of the Agreement shah be replaced by the following :
3. In paragraph 5 of the Article 10 of the Agreement the words "or a fixed base" shall be inserted after the term "permanent establishment".
1. Paragraph 2 of Article 11 of the Agreement shall be replaced by the following :
2. However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest."
2. Paragraph 3 of Article 11 of the Agreement shall be deleted.
3. The existing paragraph 4 of Article 11 of the Agreement shall become paragraph 3.
4. Sub-paragraph (a) of paragraph 3 of Article 11 of the Agreement shall be replaced by the following :
"3. Notwithstanding the provisions of paragraph 2 :
(a) interest arising in Switzerland and paid to a resident of India shall be taxable only in India if it is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the Government, a political subdivision, a statutory body or a local authority of India or the Export-Import Bank of India, the Reserve Bank of India, the Industrial Finance Corporation of India, the Industrial Development Bank of India, the National Housing Bank, the Small Industries Development Bank of India or by any institution specified and agreed in letters exchanged between the competent authorities of the Contracting States.
5. The existing paragraphs 5 to 8 of Article 11 of the Agreement shall become paragraphs 4 to 7.
6. Paragraph 5 to 6 of Article 11 of the Agreement shah be replaced by the following :
"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 a case the provisions of Article 7 or Article 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 Contracting State in which the permanent establishment or fixed base is situated."
1. The heading and paragraph 1 to 7 of Article 12 of the Agreement shall be replaced by the following :
"ARTICLE 12 Royalties and fees for Technical Services
2. However, such royalties and 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 is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties or the fees for technical services.
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 a literary, artistic or scientific work, including cinematograph films or work on film, tape or other means of reproduction for use in connection with 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, any industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience.
5. Notwithstanding paragraph 4, "fees for technical services" does not include amounts paid :
7. Royalties and fees for technical services shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, 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."
2. In paragraph 8 of Article 12 of the Agreement the term "included services" shall be replaced by the term "technical services".
1. Paragraph 2 of the Article 13 of the Agreement shall be replaced by the following :
"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."
2. Paragraph 5 of Article 13 shall be replaced by the following :
"5. Gains from the alienation of shares other than those mentioned in paragraph 4, of a company which is a resident of a Contracting State :
shall be taxable only in the Contracting State of which the alienator is a resident ;
In this case the provisions of sub-paragraph (b) of paragraph 1, of Article 23 shall apply."
1. The following Article 14 relating to Independent Personal Services shall be inserted after Article 13 relating to Capital Gains :
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 ; or
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 fro in 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, lawyers, engineers, architects, surgeons, dentists and accountants."
2. The existing Article 14 shall be renumbered as Article 15 and replaced by the following Article :
"ARTICLE 15 Dependent Personal Services
1. Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may also be taxed in that other State.
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 ; and
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."
The following Article shall be inserted after Article 21 of the Agreement.
"ARTICLE 22 Other Income
2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right 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.
3. Notwithstanding the provisions of paragraphs 1, if a resident of a Contracting State derives income from sources within the other Contracting State in the form 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."
3. In sub-paragraph (b) of paragraph 2 of renumbered Article 23 of the Agreement, the term "including services" shall be replaced by the term "technical services".
5. Sub-paragraph (d) of paragraph 2 of renumbered Article 23 of the Agreement shall be replaced by the following :
"(c) Where a resident of Switzerland derives interest dealt with in sections 10(4), 10(4B), 10(15)(iv ) and 80L of the Indian Income-tax Act of 1961 (43 of 1961) and referred to in sub-paragraph (d ) of paragraph 3 of Article 11, Switzerland shall allow, upon request, a relief to such resident of an amount equal to 10 per cent of the gross amount of the interest."
2. Paragraph 1 of renumbered Article 24 of the Agreement shall be replaced by the following :
"1. 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 and under the same conditions 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."
3. The following paragraph shall be inserted after paragraph 2 of renumbered Article 24 of the Agreement :
"3. Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 8 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State."
A. In the first sub-paragraph of paragraph 1 of the Protocol to the Agreement the words "....... in paragraph 2, sub-paragraph (a) of Article 12." shall be replaced by the words "..... in paragraph 2 of Article 12."
B. In the third sub-paragraph of paragraph 1 of the Protocol to the Agreement the words "With respect to paragraph 4 of Article 5....." shall be replaced by the words "With respect to paragraph 5 of Article 5 ....."
C. In the Protocol to the Agreement the following paragraph shall be inserted after paragraph 2 :
"3. With reference to paragraph 2 of Article 9
It is understood that Switzerland shall only make an appropriate adjustment after consultation with the competent authority of India and after reaching an agreement on the adjustments of profits in both Contracting States."
D. The existing paragraph 3 of the Protocol to the Agreement shall be replaced by the following :
"4. With reference to Articles 10, 11 and 12
If after the signature of the Protocol of 16th February, 2000 under any Convention, Agreement or Protocol between India and a third State which is a member of the OECD India should limit its taxation at source on dividends, interest, royalties or fees for technical services to a rate lower or a scope more restricted than the rate or scope provided for in this Agreement on the said items of income, then, Switzerland and India shall enter into negotiations without undue delay in order to provide the same treatment to Switzerland as that provided to the third State."
E. In the Protocol to the Agreement the following paragraph shall be inserted after paragraph 4 :
"5. With reference to sub-paragraph (b) of paragraph 5 of Article 13
It is understood that if at a later stage Switzerland shall introduce a capital gains tax on the alienation of shares of a Swiss company other than shares of a company mentioned in paragraph 4, paragraph 5 of Article 13 shall be replaced by the following :
G. In the Protocol to the Agreement the following paragraph shall be inserted after paragraph 6 :
"7. With reference to paragraph 4 of Article 24
It is understood that this provision shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first-mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first-mentioned Contracting State, nor as being in conflict with the provisions of paragraph 3 of Article 7 of this Agreement."
H. The existing paragraph 5 of the Protocol to the Agreement shall become paragraph 8 and its heading shall be replaced by the following :
"8. With reference to Article 25"
2. The Protocol, which shall form an integral part of the Agreement, shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provisions shall have effect :
in India, in respect of income arising in any fiscal year beginning on or after the first day of April next following the calendar year in which the Protocol entered into force ; and
in Switzerland, in respect of income arising in any fiscal year beginning on or after the first day of January next following the calendar year in which the Protocol entered into force.
Done in duplicate at New Delhi, this 16th day of February, 2000, in the German, Hindi and English languages, all the texts being equally authentic. In case of divergence of interpretation the English text shall prevail.
AMENDMENT NOTIFICATION NO.SO 2903(E), DATED 27-12-2011
SECTION 90 OF THE INCOME-TAX ACT, 1961 - DOUBLE TAXATION AGREEMENT - AMENDMENT OF AGREEMENT FOR AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH FOREIGN COUNTRIES - SWISS CONFEDERATION
NOTIFICATION NO. 62/2011[F.NO.501/01/1973-FTD-I] S.O. 2903(E), DATED 27-12-2011
Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby directs that all the provisions of the said Protocol, as set out in the Annexure hereto, shall be given effect to in the Union of India in respect of income arising in any fiscal year beginning on or after the 1st day of April, 2012 and with respect to Article 26 of the Agreement, the exchange of information provided for in the said Protocol will be applicable for information that relates to any fiscal year beginning on or after the 1st day of April, 2011.