The Government of the Republic of India and the Government of the Republic of Indonesia, which intend to conclude an agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the promotion of economic cooperation between the two countries, have agreed as follows: (d) where his residence status cannot be determined in that order on the basis of subparagraphs (a) to (c); the competent authorities of the States Parties shall endeavour to resolve the matter by mutual agreement. Whereas an Agreement was signed in New Delhi on 27 July 2012 between the Government of the Republic of India and the Government of the Republic of Indonesia for the avoidance of double taxation and the prevention of fiscal evasion with respect to income tax (hereinafter referred to as that Agreement); 3. If, pursuant to paragraph 1, a person other than a natural person resides in both Contracting States, he shall be deemed to reside only as a national of the State in which his place of effective management is situated. If it is not possible to determine the State in which the place of effective management is situated, the competent authorities of the Contracting States shall endeavour to settle the matter by mutual agreement. 4. The competent authorities of the States Parties may communicate directly with each other with a view to reaching an agreement within the meaning of the preceding paragraphs. The competent authorities shall, through consultations, develop appropriate bilateral procedures, conditions, methods and techniques for the implementation of the mutual agreement procedure provided for in this Article. 1. Nationals of a Contracting State may not be subject in the other Contracting State to any other taxation or related obligation which is different or more onerous from taxation and to the related requirements to which nationals of that other State are or may be subject in the same circumstances, in particular with regard to residence. Without prejudice to Article 1, this provision shall also apply to persons who are not resident in one or both Contracting States. (i) that transaction has been used for the avoidance of taxation in the Contracting State in which the permanent establishment is situated, and 1. Without prejudice to the remedies provided for in the domestic law of those States, if a person considers that the acts of one or both of the Contracting States give rise or will entail taxation incompatible with this Convention, he may, without prejudice to the remedies provided for by the domestic law of those States, or where his case falls within the scope of Article 25, paragraph 1: in the case of the Contracting State of which he is a national.
The case must be submitted within three years of the first notification of the action leading to taxation not in accordance with the provisions of the Convention. 3. The competent authorities of The States Parties shall endeavour to resolve by mutual agreement any difficulties or doubts arising from the interpretation or application of the Convention. They may also consult each other on the elimination of double taxation in cases not provided for in the Convention. 2. The competent authority shall endeavour, if it considers that the objection is justified and unable to reach a satisfactory solution itself, to resolve the matter by mutual agreement with the competent authority of the other Contracting State with regard to tax evasion incompatible with the Convention. Any agreement reached shall be implemented without prejudice to the time limits set by the domestic law of the States Parties. This Agreement shall not affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or the provisions of special conventions. 5. For the purposes of this Article, “taxation” means the taxes which are the subject of this Agreement. 1. The provisions of this Agreement shall in no way prevent a State Party from applying its national laws and measures relating to tax evasion or evasion, whether or not designated as such.
2. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State may not be levied less favourably in that other State than the tax levied on the enterprise of that other State which carries on the same activities. This provision shall not be interpreted as requiring a Contracting State to grant personal allowances, facilities and tax reductions to the resident of the other Contracting State on the basis of civil status or family obligations which it grants to its own residents. 3. The term “dividends” as used in this Article means income from shares or other rights which do not constitute claims and do not share in profits, as well as income from other company rights which, under the law of the State of residence of the distributing company, is subject to the same tax treatment as income from shares. 2. For the purposes of this Article, “tax claim” means an amount due on taxes of any kind levied on behalf of the Contracting States or their political divisions or local authorities, provided that taxation under this Convention or any other act to which the Parties are parties does not preclude taxation; as well as interest, administrative penalties and collection or maintenance costs related to this amount. India has concluded eight limited double taxation treaties with the following countries on the income of commercial airlines/shipping companies: This paragraph does not affect the taxation of the company with respect to profits whose dividends are paid.
1. The competent authorities of the Contracting States shall exchange information (including documents or certified copies of documents) which is foreseeable for the implementation of this Agreement or for the application or enforcement of national tax laws of any kind and description collected on behalf of the States Parties or their political divisions or local authorities; to the extent that taxation under the Convention is not contradictory. The exchange of information shall not be restricted by Articles 1 and 2 4. The Agreement also applies to all identical or substantially similar taxes levied after the date of signature of the Agreement in addition to or in lieu of existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial change in their respective tax laws. (d) the term “person” includes a natural person, a company, a company and any other entity treated as a taxable entity under the tax laws in force in the respective Contracting States; 1. States Parties shall provide each other with administrative assistance for the recovery of tax claims. This support shall not be limited by Articles 1 and 2. The competent authorities of the States Parties may, by mutual agreement, determine the modalities for the implementation of this article.
India has signed double tax evasion (DTA) agreements with the majority of countries and limited agreements with eight countries. The treaties provide for the income that would be taxable in each of the Contracting States, according to the agreement of the nations and the conditions of taxation and exemption. 3. Enterprises of a Contracting State the capital of which is wholly or partly owned or controlled by one or more residents of the other Contracting State shall not be subject in the first-mentioned State to any taxation or related obligation different or onerous from taxation and related requirements for other similar enterprises of the first-mentioned State. power.. .