REGISTERED NO. D. (D)-73
The Gazette of India
EXTRAORDINARY
PART II—Section 3—Sub-section (i)
PUBLISHED BY AUTHORITY
No. 8] NEW DELHI, WEDNESDAY, JANUARY 4, 1978/PAUSA 14, 1899
Separate paging is given to this part in order that it may be filed as a separate compilation
145 GI/77
(17)
18 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]19
And whereas all the requirements have been completed in Ethiopia and India as are riec"at,ary to give the said Agreement ha.s force of law in Ethiopia and India respectively, as required by paragraph 1 of Article 3 of the said Agreement;
And whereas the letters to this effect have been exchanged between the said two Governments, as required by paragraph 1 of Article 3 of the said Agreement;
Now, theicfore, 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) Surtax Act, 1964 (7 of 1964), the Central Government hereby directs that all the provision; of the said Agreement shall be given effect to in the Union of India.
ANNEXURb
AGREEMENT
BETWEEN
THE GOVERNMENT OF THE REPUBLIC OF INDIA
FOR
Die Avoidance of Double Taxation of Income ot EntciDilses Operating Aiicratt
'I he Government of India and the Government of Ethiopia
Desiring to conclude an Agieemcnt for the avoidance of double taxation of income of entci prises operating aircraft changeable to tax in the said countries in accordance with Iheb lespeetive laws.
Have agreed as follows :
Article 1
1. In this Agreement, unle
(a) the term "Ethiopia"' means the territory of Ethiopia and the various islands forming pait of Ethiopia, and include; the territorial sea and any other marine •ueas adjacent thereto, including their seabed and sub-soil, over the resources of which Ethiopia has, oi may hereinafter have, sovereign rights in accord- ance with international law ;
(b) the tenn " inJia" means the territory oi India and in- cludes Ih- territory sea and any other marine areas adjacent thereto, including their seabed and sub-soil, o\ci the resources of which India has, or may here- inafter have, sovereign rights in accordance with international law ;
(c) the terms "a Contracting State" and the "other Cont- racting State" mean Ethiopia oi India, as the context requires ;
(d) the term "enterprise of a Contracting Stale" means ;
(i) an nil line designated by the Government of that State in pursuance of the Agreement dated 3rd August, 1967 (as amended or" revised from tune to time) between the Government of India and the Government of Ethiopia relating to air services; or
(ii an airline which is authorised by the Government of that State by a general or special arrangement between the two Contracting States to operate chartered flights between or beyond their territo- ries;
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 4th January. 197N
INCOME-TAX
G.S.R. 8(E).—Whereas the Government of India and the Provisional Military Government of Socialist Ethiopia hive concluded
(t) the- term "international traffic" means any transport by an aircraft operated by on enterprise of a Cont- racting Stale, except when the aircraft is operated sGlely between places in the other Contracting State: rind
(f) the expression "operation of aircraft" means a busi- ness of transportation by air of persons, livestock, goods or mail, carried on by the owners of lessen or charterers of aircraft, including the sale of tickets for such transportation on behalf of othei enterprises and any other activity directly connected with such transportation
20 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I—SEC. 3(i)]2. ]n the application of the provisions of this Agreement by one of the Contracting States, any term used but not defined heroin shall, unless the context otherwise requires, have the meaning which it has under the laws in force in that State relating to the taxes which are the subject of this Agreement.
Article 2
1. Under this Agreement, income derived by an enterprise of a Contracting State from the operation of aircraft in inter- national traffic shall, on the principle of reciprocity, be exempt from tax in the oiher Contracting State.
2, Paragraph 1 shall also apply in respect of participations in a pool, a joint venture or in any other similar arrangement regarding air transport.
3. For the purpose of paragraph 1, interest on funds directly connected with the operation of aircraft shall be regaided tis income from the operation of such aircraft.
4, For the purpose of this Article, the teim "tax" ••hall mean income-taxes and any other taxes, dues and levies on income which are imposed or may hereafter be imposed on behalf of each Contracting State or of its political sub-divi- sions or local authorities, irrespective of the manner in which they :ue imposed.
Article 3
1. This Agreement shall be approved in accordance with the laws and practice in force in each of the Contracting States. It shall enter into force on the date of the exchange of letters certifying that the proper procedure was fulfilled in each Contracting State. The exchange of letters shall Uke place at Addis Ababa as soon a3 possible.
2. This Agreement shall have effect :
(a) In Ethiopia, in respect of income derived fiom the operation of aircraft in international traffic after 1st July, 1966.
(b Tn India, in respect of income derived from the opcia- lion of aircraft in international traffic after 1st Julv, 1966.
Article 4
This Agreement shall continue in effect indefinitely but nay be terminated by cither of the Contracting States with a written notice of six months. In such event, the Agreement shMl cease to be effective in respect of income derived from operation of aircraft in international traffic after the 1st day of January next following the date on which the said period of six months expires.
Tn witpfss whereof the undersigned, duly authorised thereto,
have sijjr 1 tho present Agreement.
Douc in duplicate at New Delhi this 25th day of Nov- ember, one thousand nine hundred and seventy six in the Amhnric, Fnglish and Hindi languages, all the texts being equally Jiulhcntic, except that in the case of divergence of interpretation the Fngli'h text shall previi1.
Sd/-
Sd/-
(Pranab Kumar Mukheijee) (BERHANE S. A. DhNEKE) For the Government of the For the Provisional Military Republic of India; Government of Socialist
Ethiopia ;
Excellency,
With, reference to the Agreement which is being signed today between the Government of India and the Government of Ethiopia for the avoidance of double taxation of income of enterprises operating aircraft, T have the honour to slate on behalf of the Government of India that whereas the said Agreement provides for the exemption from tax in either Contracting State of the income derived by an enter- prise of the other Contracting State from operation of air craft in international traffic after 1st July, 1966, the two Contracting States have agreed as follows :
(1) Ethiopian Airlines being an enterprise of Ethiopia, any taxes paid by it or any deposits made by it towards its tax dues in India in respect of its income for which it is exempt from tax in accordance with the Agreement afore- said shall be refunded by the Government of Tndia to Etho- pian Airlines on an application in this behalf by Ethiopian Airlines within six months from the date on which the Agreement aforesaid enters into force, and nny proceedings already initiated for the taxation of such income shall be terminated,
(2) Air India being an enterprise of India, any taxes paid by it or any deposits made by it towards its tax dues in Ethiopia in respect of its income for which it is exempt from tax in accordance with the Agreement aforesaid shall be refunded by the Government of Ethiopia to Air Jndia on an application in this behalf by Air India within six months from the date on which tho Agreement aforesaid enters into force, and any proceedings already Initial od foi the taxation of such income shall be terminated.
I shall be grateful if Your Excellency will confirm your agreement with the position as stated above and, in such case, this note and Your Excellency's reply thereto shall be deemed to be part of the Agreement aforesaid.
Please accept, Excellency, the assurances of my higheyl
consideration,
SdA PRANAB KUMAR MUKHERJEE
To
MR. BERHANE, S. A. DENEKE Charge-d'Affaires, of Socialist Ethiopia, New Delhi.
Excellency,
I have tho honour to acknowledge receipt of your lettci
of today running as follows :
"With reference to the Agreement which is being signed today between the Government of India and the Govern- ment of Ethiopia for the avoidance of double taxation of income of enterprises operating aircraft, I have the honoui to state on behalf of the Government of India that where- as the said Agreement provides for the exemption from tax in either Contracting State of the income derived by jn enterprise of the other Contracting State from operation of aircraft in international traffic after 1st July, 1966, the two Contracting States have agreed as follows :
(1) Ethiopian Aiilines being an enterprise of Ethiopia, any taxes paid by it or any deposits made by it towards its tnx dues in India in respect of its income for which it is exempt from tax in accordance with the Agreement afore- said shall be refunded by the Government of India to Ethiopian Airlines on an application in this behalf by Ethiopian Airlines within six months from the date on which the Agreement aforesaid enters into force, and any pro- ceedings already initiated for the taxation of such income shall be terminated.
(2) Air India being an enterprise of India, any taxes paid by It or any deposits made by it towards its tax dues in Ethiopia in respect of its income for which it is exempt from tax in accordance with the Agreement aforesaid shall be refunded by the Government of Ethiopia to Air India on an application in this behalf by Air India within six months from the date on which the Agreement aforesaid enters into force, and any proceedings already initiated foi the taxation of such income shall be terminated.
I shall be grateful if your Excellency will confirm your agreement with the position as stated above and, in such case, this note and your Excellency's reply thereto shall be deem- ed to be part of the Agreement aforesaid."
2. 1 have the honour to confirm on behalf of the Gov- ernment of Ethiopia, the position as stated above. Your note of today's date and my reply thereto shall, therefore, form a part of the Agreement.
Accept, Excellency, the assurances of my highest consi-
deration.
Sd/-
BERHANE S. A DENRKE
To
SHRI PRANAB KUMAR MUKHERJEE Minister of Revenue and Banking, Government of India, New Delhi.
[No, 2105/F. No. 145/15/71-FTD] J. C. KALRA, Jt. Secy.