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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART I I- Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. 123] NEW DELHI, FRIDAY, APRIL 15, 1977/CHAITRA 35, 1899

Separate paging is given to this Part in order that it may be filed

as a separate compilation

DEPARTMENT OF REVENUE AND BANKING

(Revenue Wing)

NOTIFICATION

INCOME-TAX

New Delhi, the 15th April 1977

G.8.R. 184(E).—Whereas the annexed Agreement on Merchant Shipping has been concluded between the Government of the Republic of India and the Gov- ernment of the People's Republic of Bulgaria;

And whereas Article 10 of the said Agreement provides for the avoidance of double taxation in respect of taxes on income derived from the carriage of cargo;

Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961) and section 24A of the Companies (Profits) Sur-tax Act, 19G4 (7 of 1964), the Central Government hereby directs that the provisions of the said Article of the said Agreement shall be given effect to in the Union of India.

(695)

ANNEXURE

AGREEMENT ON MERCHANT SHIPPING BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE PEOPLE'S REPUBLIC OF BULGARIA

The Government of the Republic of India and the Government of the People's Republic of Bulgaria, inspired by the desire to develop the maritime relations between the two countries, have agreed as follow:

Article 1

1. The cooperation between the twc countries m the field of maritime naviga- tion shall be based On the principles of sovereign equality, national interests and mutual advantage and assistance.

2. The provisions of this Agreement shall be applicable to bilateral shipping between the two Contracting Parties

Article 2

In accordance with Article 1 of this Agreement, both parties shall contribute to the establishment of a regular liner shipping service between the ports of the two countries and develop mutual contacts among their organisations responsible for shipping activities.

Article 3

1. The term "vessel" of each party indicates the vessel of the mercantile marine sailing under the flag of that country in accordance with its laws.

This term would exclude the warships of both the Parties

2 The term "member of the crew" of a merchant vessel indicates any person entered in its crew list.

Article 4

1. The Parties agree to promote the participation of their vessels in the car- riage of all commercial cargoes between the ports of the two countries on the principle of equality in all matters, including the distribution of cargo, its trans- portation arid freight earnings over specified periods

2. In case the shipping companies of one of the Contracting Parties are not able to undertake the carriage m accordance with paragraph 1, such carriage will be offered to the vessels of the other Contracting Party. If the required tonnage is not available with the other Contracting Party, the- first Party may use vessels of third countries for the carriage of the share of cargo of the Con- tracting Party.

3. The provisions of this Article do not concern the* right of the vessels, sail- ing under the flag of third countries to participate in the sea traffic between the ports of the Contracting Parties

.Article 5

Each Party will avoid competition with the fleet of the other in its trade with third countries and desrtst from such activities as would prejudice the growth and utilisation of the merchant fleet of the other Party.

Article 6

Each Party may establish a general agency for its shipping companies in the territory of the other Party in accordance with the laws Of that country.

Article 7

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2. The provisions of the preceding paragraph shall not apply to maritime activities legally protected for each country such as coastal shipping, pilotage, sea fishing as well as to the regulations regarding the entry and stay of foreigners.

Article 8

The Parties shall endeavour to adopt, within the limits of their laws and port regulations, all appropriate measures to facilitate and expedite maritime traffic, to prevent delays to vessels and to expedite the carrying out of customs and other formalities applicable at the ports.

Article 9

All ship documents including those relating to nationality, registration, ton- nage and survey Issued or recognised by one Party shall be recognised by the other Party.

Article 10

1. All port dues end charges for services rendered to the vessels operating under the provisions of the present Agreement shall be regulated In accordance with the relevant laws applicable at the ports of India and Bulgaria from time to time.

2. The Parties agree not to collect income-tax on the freight earnings on car- goes carried by vessels from ports of one Contracting Party to the ports of the other Contracting Party.

Article 11

1 Each of the Parties shall recognise the seaman's identity documents Issuv¹ by the appropriate authorities of the other Party.

2. Holders of Seaman's identity documents specified above shall be permitted to land on temporary shore leave without visa during the stay of the vessel in the port of the other Party, piovided that the crew list has been' submitted to the concerned authorities in accordance with the laws and regulations in force in that port.

3. From the time of their landing to the time of their returning to the vessel, the said persons shall be subject to frontier and customs control and the laws and regulations for foreigners' traffic in force m that port.

4 When a member of the crew possessing an identity document and the pres- cribed permission disembarks in the port of the other Party due to Illness, offi- cial reasons or other reasons, the latter shall allow his being putting up at a hospital, hig being repatriated or his being moved to another port in order to be accommodated in another ship

3, Holders of the seaman's identity documents shall be permitted to enter, move through or leave by any means of transport the territory of the other country in order to be able to join a vessel of his country in a port of the other Party or on way 698 THE GAZETTE OF INDIA EXTRAORDINARY PAHT II—SEC ³(¹)

The loads, freights and repuirmg of a vessel which has been damaged shall not be subject to customs duties and taxes provided the same are taken, out of the country within a leasonable period or are not handed over for local con- sumption.

Article 13

All payments and expenses relating to sea transport between the two coun- tries shall be effected in accordance with the provisions of the payments agree- ment in force between the two countries from time to time

Article 14

Any difficulty arising in the workme of this Agreement shall be settled by negotiation.

Article 15

1. For the purpose of evaluating, supervising and reviewing the overall work- ing of this Agreement and resolving any outstanding issues, the Contracting Par- ties agree to set up a Joint Committee on shipping which will meet periodically. The Parties will nominate their representatives to the Joint Committee,

2. State Shipping Corporation, "Watei Transport", Varna, from the Bulgarian side and the Shipping Corporation of India Limited, Bombay, from the Indian side are the organisations which aie authorised to solve thp questions such as distribution of cargoes, fixation of sailings and tariff and similar other questions for implementing the present Agreement,

Each Party may, if necessary, nominate any other organisation In place of the above by notifying to the other Party

Article 16

The present Agreement shall be applicable in the territory of the Republic of India on the one hand and in the territory of the People's Republic of Bulgaria on the other hand.

Article 17

1 This Agreement shall take effect from the date on which instruments of Ratification are exchanged in New Delhi and shall remain m force for a period of five years.

2 After the expiration of this, period the Agreement shall be automatically renewed for a one year period ot a time unless either of the Contracting Parties expresses its desire to renegotiate the Agreement or any of its provisions by giv- ing a written notice to the other Party to that effect six months prior to the expiry of any of the above mentioned periods.

Done in New Delhi on this the Eighteenth day of November, 1976 in two original copies m English, both the texts being equally authentic

FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF THE THE REPUBLIC OF INDIA PEOPLE'S REPUBLIC OF BULGARIA

(Sd) Dr. G. S. DHILLON

(Sd.) IVAN NEDEV.

[No. 1727/F. No. 145/25/71-FTD]

J. C KALRA, Jt. Secy.

699

701

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