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REGISTERED No. D. (D.N.)—72

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. 18] NEW DELHI, MONDAY, JANUARY 18, 1982/PAUSA 28, 1903

Separatepagingisgiventothispartinorderthatitmaybefiledasaseoparatecompilation

(37)

1220 GI/81-1

MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION

New Delhi, the 18th January, 1982

INCOME-TAX

G.S.R. 22(E).—Whereag the annexed Agreement between the Government of the Republic of India and the Govern- ment of (he Republic of Singapore for the avoidance of double taxation and the Prevention of Fiscal Evnsion with respect to Taxes on Income has been ratified and ihe Instru- ments of Ratification exchanged, as required by Article 28 of the said Agreement.

1220 GI/81—2

Now, therefore, in exercise of the powers conferred by ection 90 of the Income-tax Act, 1961 ,(43 of 196)) and ection 24A of the Companies (Profits) Surtax Act, 1964 7 of 1964), the Central Government hereby directs thai. 11 the provisions of the said Agreement shall be given effect o in the Union of India.

ANNEXURE Agreement BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF INDIA

AND

THE GOVERNMENT OF THE REPUBLIC OF SINGAPORE

FOR

THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the Republic of India and the Government rf the Republic of Singapore,

DESIRING to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with res- pect to taxes on income,

HAVE AGREED as follows :

CHAPTER I

SCOPE OF THE AGREEMENT

Article 1

PERSONAL SCOPE

This Agreement shall apply to persons who are resident

of one or both of the Contracting States.

Article 2

TAXES COVERED

1. The taxes to which this Agreement shall apply ;ire :

(a) in the case of India :

(i) the income-tax and any surcharge on income-tax imposed under the Income-tax Act. 1961 (43 of 1961);

(ii) the surtax imposed under the Companies (Profits)

Surtax Act, 1964 (7 of 1964) ; (hereinafter referred to as "Indian tax'). (b) in the case of Singapore :

the income tax (hereinafter referred to as "Singapore

tax").

2. This Agreement shall also apply to any identical or sub- stantialy similar taxes which are subsequently imposed in addi- tion to, or in place of, the taxes referred to in paragraph 1 of this Article.

3. The competent authorities of the Contracting Slates shall notify to each other, within reasonable time, any significant changes which have been made in their resnective taxation laws and furnish copies of relevant enactments.

CHAPTER IT

DEFINITIONS

Article 3

GENERAL DEFINITIONS

1. In this Agreement, unless the context otherwise requires:

00 the terms "a Contracting State" and "the other Con-

tracting State" mean India Or Singapore, as the con- text requires;

(b) the term "tax" means Indian tax or Singapore tax,

as the context requires;

(c) the term "person" includes an individual, a company and any other entity which is treated as a taxable unit under the taxation laws of the respective Con- tracting States ;

(d) the term "company" means any body corporate or any entity which is treated as a company under the taxation laws of the respective Contracting States;

(e) the term "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean,- respectively, an enterprise carried on. by a resident of a Contracting Slate and an enterprise carried on by a resident of the other Contracting State;

(f) the term "competent authority" means, in the case of India, the Central Government in the Ministry of Finance (Department of Revenue); and in the case of Singapore, the Minister for Finance or his authorised representative-

Is) the term "international traffic" means any transport by

a ship or aircraft operated by an enterprise which has its control and management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State.

2. In the application of the provisions of this Agreement by cither Contracting State, any term not defined herein shall, unless the context otherwise requires, have the meaning which it has under the laws in force in that State relating to the taxes to which this Agreement applies.

Article 4

FISCAL DOMICILE

1. For the purposes of this Agreement, the term "resident of a Contracting State " means any person who is a resident of a Contracting State in accordance with the taxation laws of. tbtt State.

2. Vhere by reason of the provisions of paragraph I of this Article, an individual is a resident of both¹ Contracting Stata then his residential status for the purposes of this Agrjstnent shall be determined in accordance with the fol- lowiq rules :

0 he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer;

) if the Contracting State with which his personal and economic relations are closer cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be- deemed to be a resident of tho Contracting State in which he has an habitual abode;

if he has an habitual abode in both Contracting States or in neither of them, the competent authorities of the Contracting States shall determine the question by mutual agreement.

3. here by reason of the provisions of paragraph 1 of this tide, a person other than in an individual is a tesident of In Contracting States, then it shall be deemed to be a resid of the Contracting State in which its\placc of effective maniment is situated.

Article 5

PERMANENT ESTABLISHMENT

1-T the purposes of this Agreement, the term "perma- nent abllshment" means a fixed place of business in which the tness of the enterprise is wholly or partly carried on,

2. is term "permanent establishment" shall include :

a place of management; a branch ; an office; a factory; a workshop;

a mine, a quarry, an oil well or other place of extrac-

tion of natural resources;

a farm or a plantation;

(h) a building site or a construction or installation or assembly project which exists for more than six months.

3. The term "permanent establishment" sball not be deemed

to include ;

(.a) the use of facilities solcJy for the purpose oi" storage,

display or delivery of goods or merchandise belong- ing to the enterprise;

(.b) the maintenance of a stock, of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

t.c> the maintenance of a stock of goods or merchandise

belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collcctirig information, for the enterprise;

(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of infor- mation, for scientific research or for similar activi- ties which have a preparatoiy or auxiliary character, for enterprise.

4. An enterprise of a Contracting State, notwithstanding it has no fixed place of business in the other Contracting Slate, shall be deemed to nave a permanent eatablisBment in that other Contracting State if —

(a) it carries on supervise! y activities in that oiher Con- tracting State for more than six months in connection with, a construction or installation or assembly project which is being undertaken therein; or

Ib) it provides the services of public entertainers (such as stage, motion picture, radio or television artistes und musicians) or athletes in that other Contract- ing State unless the enterprise is supported, wholly or substantially, from the public funds of the Government of the first-mentioned contracting State in connection with the provision of such services. For the purposes of this sub-paragraph, the term "Government" shall include a State Government, a. political sub-division or a local or statutory autho- rity of either Contracting State.

5. Subject to the provisions of paragraph 6 of this Aiticle, a person acting in a Contracting State _for or on behalf of an enterprise of the other Contracting State shall be deemed to be a permanent establishment of that enterprise in the fiist- mentkracd State if :

(i) he has, and habitually exercises in that State, un authority to conclude contracts for or on behalf of the enterprise, unless the activities of the persons are limited to the- purchase of goods or merchandise

for the enterprise; or

(ii) be maintains in the first-mentioned Contracting Stale a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders for or On behalf of the enterprise; or

(iiij he habitually secures orders in the first-mentioned Con- tracting State exclusively or almosi exclusively, for the. enterprise or any other enterprise which is con- trolled by it or has a controlling interest in it.

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 Con- tracting State through a broker, a general commission agent or any other agent of an independent status, where such per- sons are acting in the ordinary course of their business.

7. The fact that a company which is a resident of a Con- tracting 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 Sate (whether through a permanent establishment or otherwise), shall not of itself constitute for either company a permanent establishment of fhe other.

CHAPTER II

TAXATION OF INCOME

Article 6

INCOME FROM IMMOVABLE PROPERTY

1. Income from immovable property may be taxed in trie

Contracting State in which such property is situated.

2. The term "immovable property" shall be defined in accordance with the law of the Contracting State in which ihe property is situated. The term shall in any case include property accessory to immovable property, livestock and equip- ment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable of fixed payments as consideration for the working of, or the light to work, mineral deposits, sources and other natural resources. Sljips and aircraft shall not be regarded as immovable pro- perty.

3. The provisions of paragraph 1 of this Article shall apply to income derived from the direct use, letting or use in any other form of immovable property,

4. The provisions of paragraph 1 and 3 of this Article shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of professional services.

Article 7

BUSINESS PROFITS

1. The income Or profits of an enterprise of a Continuing State shall be taxable only in that Contracting State unless the enterprise carries on business in the other Contracting State through a permanent establishment .siluated therein, if the enterprise carries on business as aforesaid, the income or profits of the enterprise may be taxed in the other Contracting State but only so much of such income of profits as is attri- butable to that permanent "establishment.

2. Where an enterprise of a Contracting State carries on business In the other Contracting State through ft permanent establishment situated therein, there shall in each Contract- ing State be attributed to that permanent establishment the income or profits which it might be expected to make if it were an independent enterprise engaged in the same or simi- lar activities under the same or similar conditions and deat- wholly independently with the enterprise of which it is a permanent establishment. In any case, where the correct amount of profits attributable to a permanent establishment is incapable of determination or the ascertainment thereof presents exceptional difficulties, the profits attributable to the permanent establishment may be estamated on a reasonable basis.

3. In the determination of the income or profits of a per- manent establishment, there shall be allowed-,as deductions expenses which are incurred for the purposes of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

4. No income or profits shall be attributed to a pcrmunen establishment by reason of the mere purchase by that per manent establishment of goods or merchandise for th enterprise.

5. For the purpose of this Article, the term "income i prohts means income derived by an enterprise from tt conduct of a trade or business; but does not include incon dervied by an enterprise in the form of rents, royalties, tec meal service fees, interest, dividends, capital gains, fees f the management of the business of another enterprise or muneration or fees received by an enterprise for the furni mg to another cnte.prisc of the services of its technical ski! or other personnel except where the propetty or other ri giving nse to any such item of income is effectively connec with the permanent establishment of the enterprise The u 'income or profits" shall not also include income from operation of ships or aircraft.

6. Where items of income are dea;t with separately in other Articles of this Agreement, then (he provisions of those Arti- cles shall not be affected by the provisions of this Article.

7. Where no specific provision is made in the other Arti- cles of this Agreement in respect of any item of mcome ex- cluded from the term "income or profits" in this Article the laws in force in either of the Contracting States shall¹ govern the assessment and taxation of such income in the respective Contracting States,

Article 8

AIR TRANSPORT

1. Income derived from the operation of aircraft in intc." national traffic by an enterprise of a Contracting Stale shall be exempt from tax in the other Contracting State, unless the aircraft is operated solely between places vvilhin the other Contracting State,

2. The provisions of paragraph 1 shall also apply to prulits derived from the participation in a pool, or a joint business or in an international operating agency.

3. For the purposes of paragraphs J and 2 of this Article income derived by an enterprise of a Contracting State from the operation of aircraft from the other Contracting State shall mean income from the carriage of passengers, mail, livestock or goods loaded into an aircraft in that other Contracting State.

Aitklo 9

SHIPPING

J. Jacome of an enterpi ise • of a Contracting Stute derived

from the other Contracting States from the operation of ships io international traffic may be taxed in that othei Contracting State, but the tax chargeable in that otbe Contracting State on such income shall be reduced by ari amount equal to fifty per cent, of such tax.

2. For the purposes of paragraph 1 of this Article, income derived by an enterprise of a Contracting Stage from the operation of ships from the other Contracting State shall mean income from fhe carriage a£ passengers, mail, livestock or goods shipped in Hut other Contracting State.

3. Paragraph 1 shall not apply to profits arising as e

result of coastal traffic.

Article 10

ASSOCIATED ENTERPRISES

Where

Ib) the same persons participate directly or indirectly in the management, control or cnpital of an enterprise of a Contracting State and an enterprise of the other Contracting State,

and in either case conditions are made or imposed between the two enterprises in their commcrcinl or financial relations which differ from those which would be made between in- dependent enterprises, then any income or profits which would, but for those conditions, have accrued to one of the enter- prices, but by reason of those conditions, Jiave not so accrued mnv be included in the income or profits of thfit cnterpris and taxed accordingly.

Article 11

DIVIDENDS

X. Dividends naid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in the fust-mentioned Contracting State.

2. Wheie a company which h n resident of a Contracting State derives income or profits from the other Contracting State, that other Contracting State may no impose any tax on the dividends paid by the company to persons who aio ' not resident of that other Contracting Slate, or subject the company's undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or paitly of profits or income arising in that other Contracting §tatc.

3. (a) Where a dividend was paid by a company which was resident in both Singapore and Malaysia and the meeting at which the dividend was declared was hold in Singapore, or where a dividend was paid by a company which was resident in Malay- sia and at the time of payment of that dividend the company declared itself to be a resident of Singu- po;e for the purposes of Article VII of the Agree- ment between the Government of the Republic of Singapore and l nc Government of Malaysia for the Avoidance of Double Taxation and the Pre- vention of Fiscal Evasion with respect to Taxes on Income signed in Singapore on 26th December, 1968, the dividend shall be deemed to have been paid by a company resident in Singapore.

(b'l Where a dividend was paid by a company which was- resident in both Singapore and Malaysia and the meeting at which the dividend was declared was held in Malaysia, or where a dividend was paid by a company which was resident in Singa- pore and at the time of payment of that dividend, the company declared itself to be a resident of Malaysia for the purposes of Article VII of the Agreement between the Government of the Republic of Singapore and the Government of Malaysia for the Avoidation of Double Taxation and the Pre- vention of Fiscal Evasion with respect to Taxes on Income signed in Singapore on 26th December, 1968, the dividend shall be deemed to have been paid by a company resident in Singapore.

Article 12

INTEREST

I. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in the first-mentioned Contracting State.

1. Inerest shall be deemed to arise in a Contracting State when the payer is that Contracting Slate itself, a political sub-division, a local or a statutory authority or a resident of that Contracting State, Where, however, the person paying the iaterest, whether ho is a resident of a Contracting State or not, has in a Contracting State a permanent esta- blishment in connection with which the indebtedness on which the interest is paid was incured, and such inte;est is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

3. Where, owing to u special relationship between the payer and the recipient 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 toe payer and the lecipient in the absence of such relationship, the provisions of this Ai tide 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.

4. The term '"interest" as used in this Article means in- come from Government securities, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits and debt-claims of every kind as well a" all other income assimilated to income from money lent by the taxation law of the Contracting Stute in which the income arises.

Article 13

ROYALTIES

X, Royalties arising in a Contracting State and paid to •A r e s i d e nt of t he o t h er C o n t r a c t i ng S t a te m ay be t a x ed in

the first-mentioned Contracting State.

2. Royalties shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political sub-division, a local or statutory authority or a resident of that Contracting State. Where, however, the person paying the royalties, whethe; he is a resident of a Contracting Slate or not, has in a Contracting State a permanent esta- blishment in connection with which the liability lo pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Conti acting State in which the per- manent establishment is situated.

3. Where, owing to u special relationship between the payer and the recipient or between both of them and some other person, the amount of the royalties, paid, having regard to the use, right or information lor which they arc paid, exceeds the amount which would have been agreed upon bv the payer and the recipient i/i Ihc absence of Mich rela- tionship, the piovisions of this Aiticle shall apply only to (he last-mentioned amount. Tn that case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due rcgaid being had (o the other provisions of this Agreement.

4. 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, anv copyright of literary, artistic or scientific work (including motion picture films, or films or tapes for radio or television broadcasting), any patent, trademark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning indus- trial, commercial or scientific experience, but does not include variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources which aie dealt with under Article 6 of this Agreement.

Atticle 14

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 15, 16, 18, 19,

20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in jespect of an employment shall be taxable only in that Contracting State unless the employment is exercised in the other Con- tracting State. If the employment is so exercised such le- muneration as is derived therefrom may he taxed in that other Contracting State.

2. Notwithstanding the provisions of paragraph 1, remune- ration derived- by a resident of Singapore in respect of an employment exercised in Tndia shall not be taxed in Tndia if :

(o) he is present in India for a period oi periods not exceeding in the aggregate 183 days during the "previous year" concerned ; and

(b) (he remuneration is paid by, or on behalf of an

employer who is a resident Of Singapore ; and

(c) the remuneration is not borne by a permanent

establishment, which the employer has in India.

3. Notwithstanding the provisions of paragraph 1, remune- ration derived by a resident of Tndia in respect of an em- ployment exercised in Singapore shall noi be taxed in Singapore if :

(a) be is present in Singapore for a period or periods not exceeding in the aggregate 183 days during the calendar year concerned ; and

(b) ihc remuneration is paid by, or on behulf of an

employer who is a resident of India ; ami

U") the remuneration is not borne by a permanent esta-

blishment which the employer has in Singapore.

4. Notwithstanding the preceding provisions of this Atticle,

remuneration in respect of an employment exercised aboard i\ ship or aircraft operated by an enterprise of a Contacting State in international traffic shall be taxable only in that Contracting State.

Article 15

DIRECTORS' FEES

1. Diicclors' fees antl similar payments derived by a res'dent of a Contracting State in his capacity as a member of the hoard of directors of a company which is a resident ot the other Contracting State may be taxed in that ether Contracting State.

2. The remuneration which a person to whom paragraph 1 applies derives from the company in respect of the dis- charge of day-to-day functions of a managerial or technical nature may he taxed in accordance with the pioivsions of Ailicle 14.

Article 16

PUBLIC ENTtRTAINERS AND ATHLETES

1. Notwithstanding the proivsions of Article 14, income derived by public entertainers ("such as stage, motion picture, rad'o or television artistes and musicians) or athletes, from their personal activities as¹ such may be taxed in the Con- tracting State in which these activities are performed :

Provided that such income shall not be taxed in the said Contracting State if the visit of the public entertainers or athletes to that Slate is supported, wholly or substantially, fiom the public; fundv of the Government of the other Con- tracting State.

2. For the purposes of this Article, thc term "Ciovern- menf' includes a State Government, a political sub-division, or a local oi statutory authority of cither Contracting State.

Article 17

PENSIONS AND ANNUITIES

1. Subject to thc provisions of paragraphs 1 and 2 of Arlicle 18. pensions or annuities derived by a resident of a Contracting State shall be taxable only in that Contracting State,

2. Thc term '"pensions" means periodic payments made in consideration of past employment or by way of compen- sation for injuries received,

3. The lerm "annuities" means a stilted sum payable pei iodically at staled times, during life or during a specified or asccrtainable period of lime, under an obligation to make the payments in return for adequate and full considera- tion in money or money's vvoith.

Article 18

GOVERNMENTAL FUNCTIONS

1. Remuneration or pensions paid by, oi out of funds created by a Contracting State, or a political sub-division or a local or statutory authority thereof, to any individual in respect of services rendeied to that State or politicul sub-division or local or statutory authority in discharge of functions of a governmental nature shall be taxable only in that Contracting State. If, however, the employment is exercised in the other Contracting State by a resident of thiil other Slate not being a citizen or national of the first- mentioned Stale, thc remuneration shall be taxable only in that other Stale,

2. 7 he provisions of paragraph 1 of (his Article shall also apply to remuneration or pensions .paid by the Reserve Bank of India and thc Monetary Authority of Singapore.

3. Save as provided in paragraph 2, the provisions of ihis Article shall not apply to payments in revpect of services in connection with any trade or business canied on by either of Ihe Contracting Stales or political sub-division or a local authority nr statutory authority thereof for purposes of profit.

Article 19

STUDENTS, TRAINEES AND APPRENTICES

1. An individual who is a resident of u Contracting Stale and who is temporarily present in the other Contracting State solely as a student at a recognised university, college, school or otber educational institution in that other Contracting State or as a business or_ technical apprentice therein, for a period not exceeding six years from the date of his first arrival in that other Contracting Stale in connection with that visit, shall be exempt from lax in that other Contract- ing Stale on—

(a) all remittances from the first-mentioned Contract- ing State for the- purposes of his maintenance, edu- cation or training ; and

(b) any remuneration (not exceeding 7,500 Jndian rupee* or its equivalent flum in Singapore currency per, annum) for personal services rendered, in that other Contracting State with a view to supplementing the resources available to him for such purposes,

2. An individual who h a resident of a Contracting Stale and who is temporarily present in the other Contracting" State for the purpose of study, research or training solely as a recipient of a grant, allowance or award from the Government of cither of the Contracting States or fiom a scientific, educational, religious or charitable organisation or under a technical assistance programme entered injo by the Government of either of the Contracting States for a period not exceeding three years from the date of his first arrival in that other Contracting State in connection with that visit shall be exempt from tax in that oner Conlracing State on—

(a) the amount of such grant, allowance Or award ;

(b) all remittances from the first-mentioned Contracting State for the purposes- of his maintenance, educa- tion or training ; and

(c) any remuneration; (.not exceeding 7,500 Indian Rupees or its equivalent sum in Singapore currency per annum) in respect of services in that other Contracting State if the service are performed in connection with his study, research, training or are incidental thereto.

3. An individual who is a resident of a Contracting Stale and who is temporarily present in the other Contracting State solely as un employee of, or under contract with, an enterprise of the first-mentioned Contracting State solely for the purpose of acquiring technical, professional or busi- ness experience from a poison other than such enterprise, for a period not exceeding twelve monthsr from the date of his first arrival in that other Contracting State in connec- tion with that visit shall be exempt from tax in that other Contracting State on—

fa) all i emittances from the firsl-mentioned Contract- ing Slate for the purposes of his maintenance, education or training; and

Ibj any remuneration, so far as it is not in excess of 12,500 Indian Rupees or its- equivalent sum in Singapore currency per annum, for personal services rendered in that other Contracting State, provided such services are in connection with the acquisition of such experience.

4. An individual who is a resident of a Contracting State and who is temporarily present in the other Contracting State under arrangement with the Government of that other Contracting Stale solely for the purpose of training or study shall be exempt from tax in (hat other Contracting State in respect of remuneration leccived by him on account of such training or study.

5. For the purposes of this Article and Article 20,—

(a) (i) an individual shall be deemed to be a resident of India if he is resident in India in (he "previous year' in which he visits Singapore or in the im- mediately preceding 'previous year' ;

(ii) an individual shall be deemed to be a resident of Singapore if, immediately before visiting India, he is a resident of Singapore ;

(b) the term "recognised" in relation to a university; college, school or other educational institution in a Contracting State shall, in the case of doubt, be determined by the competent authority of that Stale.

Article 20

PROFESSORS. TEACHERS AND RESEARCHERS

1. An individual who is a resident of a Contracting State immediately before making a visit to the other Contracting State, and who, at the invitation of any university, college, school or other similar educational institution, which in the case of Singapore Is approved by the competent authority in that State and injhc case of India is recognised by the Government, a political sub-division or a local or statutory authority of that State, visits that other Contracting State for a period not exceeding two years solely for the purpose of teaching or research or both at such educational insti- tution, shall be exempt from tax in that other Contracting State on his remuneration for such teaching or research.

2, This Article shall not apply to income from research if such research is undertaken primarily for the private bene- fit of a specific person or persons.

Article 21

INCOME OF GOVERNMENT AND INSTITUTIONS

1. The Government of one of the Contracting States shall be exempt from tax in the other Contracting State in respect of any income derived by such Government from that other Contracting State.

2. For the purposes of paragraph 1 of this Article, the

term "Government"—•

(") in the case of India, means the Government of

India and shall include—

(i) the Government of the States and the Union Terri- "*,

tories of India ;

(ii) the Reserve Bank of India ;

(jii) any such institution or body as mav be agreed from time to time between the two Contracting Sitates.

(b) in the case of Singapore, means the Government

of Singapore and shall include—

(i) Ihc Monetary Authority of Singapore ;

(ii) the Board of Comjnissioners of currency ;

(iii) any such institution or body as may be agreed from time to lime between the two Contracting State?.

Article 22

INCOME NOT EXPRESSLY MENTIONED

Items of income which are not expressly mentioned in the foregoing Articles of the Agreement may be taxed in accordance with the taxation laws of the respective Con- tracting States.

Article 23

LIMITATION OF RELIEF

Where this Agreement provides (with or without other- conditions) that income from sources in a Contracting State shall be exempt from tax, or taxed at a reduced rate in that Contracting State and under the laws in force in the other Contracting Stale the said income is subject to tax by refe- rence to the amount thereof which is remitted to or received in that other Contracting State aiufnot by reference to the full amount (hcieof, then the exemption or reduction of lax

l/> be allowed under this Agreement in the first-mentioned Contracting State shall apply to so much of the income as" is remitted to or received in that other Contracting State.

CHAPTER IV

METHOD FOR ELIMINATION OF DOUBLE TAXATION

Article 24

AVOIDANCE OF DOUBLE TAXATION

1. The laws in force in cither of the Contracting Stales will continue to govein the taxation of income in the res- pective Contracting States except where provisions to the contrary are made in this Agreement. Where income is subject to tax in both Contracting States, relief from double- taxation shall b" given in accordance with the following paragiaphs of this Article.

2. (a) The amount of Singapore tax payable, under the laws of Singapore, and in accordance with the provisions of this Agreement, whether directly or by deduction, by a resident of India, in respect of income from sources within Singapore which has been subjected to tax both in India and Singapore, shall be allowed as a credit against the Indian tax payable in respect of such income but in an amount not exceeding that proportion of Indian tax which such income bears to the entire Income chargeable! to Indian tax,

(b) For the purposes of credit referred to in sub-para- graph (") above, there shall be deemed to have been paii by the resident of India the amount of Singapore tax which would have been payable but for the deduction allowed in computing the assess- able incone, reduction of or exemption from tax under—

(i) (aa) the provisions of the Economic Expansion

Incentives (Relief from Income Tax) Act,

(bb) the previsions of sections 13(l)(t), I3(l)(u), I3(lKv), 13(2), 13A, 14B and 43A of the Income "Tax Act, so far as they Were in force and have not been modified since the date of signature of this Agreement, or have been modified n minor respects so as not to affect (heir generil character,

(ii) any other provisions which may subsequently be made grantini an exemption or reduction of tax which is agreed by the competent authorities of the Contracing States to be of it substantially similar character, if it has not been modified thereafter or ha been modified in minor respects so as not to aTect its general character.

3. (a) The amount of Indan tax payable, under the laws of India and in accordance with the provisions of this Agreement, wheher directly or by deduction, by a resident of Shgapore, in respect of income from sources within Iidia which has been subjected to tax both in India aid Singapore, shall be allowed as a credit against Sinjapore tax payable in respect of such income, but ii an amount not exceeding that proportion of Sinppore tax which such in- come bears to the entie income chargeable to Singapore tax.

(b) For purposes of the credh referred to in sub-para- graph (a) above, there sfal be deemed to have been paid by the resident if Singapore the amount which would have been pa^ble as Indian tax but for a deduction allowed in computing the taxable income or an exemption or refaction of tax granted for that year under :—

(i) sections 10(4), 10(4A), KKlSjv), 32A, 33A 35C 54E. 80CC 80HH, 80T andsOK of the Income^ tax Act, 1961 (43 of 1961), 0 far 8S they were m force and have not been -nodiflcd since the date of signature of this Ai-eement, or have been modified in minor resped) so as not to affect their general character,

(ii) any other provisions which may subsequently be made granting an exemption or reduction from (ax which 13 agiecd by the competent authorities of the Contracting Stales to be of a substantially similar character, if it has not been modified thereafter or has been modified in minor respects so us not to affect its general chancter.

CHAPTER V

SPECIAL PROVISIONS

Article 25

NON-DlSCRIMfNATION

1 Nationals or citizens of a Contracting State shall not be subjected in the other Contracting Stale to any taxation or any requirement connected therewith which is other or more burden some than the taxation and connected require- ments to which nationals or citizens of that other Contract- ing State in the same circumstances and. under the same conditions are or may be subjected. This provision shall not be construed aa obliging a Contracting State to grant to nationals of the other Contracting State not resident in the first-mentioned Contracting State those personal allowances, reliefs and reductions for tax purposes which cue by law available only to citizens of the first-mentioned Contracting State or to such other persons as may be specified therein who are not resident in that Contracting Stale.

2. The term "nationals or citizens" means :

(a) all individuals possessing the nationality or citizen-

ship of a Contracting State ; and

(b) all legal persons, partnerships and associations deriv- ing their status as such from the law in force in a Contracting State,

3. 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 Contract- ing State than the taxation levied on enterprises of that Contracting State carrying on the same activities in the same circumstances or under the same conditions.

4. The provisions of this Article shall not be construed ns obliging a Contracting State to gram 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.

5. Enterprises of a Contracting State, the capital of which h wholly or partly owned or controlled, directly or indirect- ly, 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 there- with which fs other or more burdensome than the taxation and connected requirements to which other similar enter- prises of that first-mentioned Contracting State are or may be subjected in the sarre circumstances and under the same conditions.

6. In this Article, the term "taxation" means taxes which

are the subject of this Agreement,

Article 26

MUTUAL AGREEMENT PROCEDURE

1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Agreement, he may notwithstanding the remedies provi- ded by the national laws of those Stales, present the case to the competent authority of the Contracting State of which he is a resident. The case must be presented within three years from the date of the assessment or of tbe withholding of tax at the source whichever is later.

2. The competent authority shall endeavour, if the objec- tion appears to it to be justified and if it is not itself able

to nrrive at :m apjvuprinic solution, to resolve the case by mutual agreement mill the competent autlioiliy of the other Contracting State, with a view io the avoidance of luxation not in accordance with this Agreement. Any agreement reached .shall be implemented notwithstanding any time limits in the national law., of (he Contracting States.

3. The competent authorities of the Cont:acting Stales shall cndeavoui to resolve by mutual agreement any diffi- culties Or doubts arising as to the interpretation or applica- tion of this Agreement. They may also consult together for the elimination of double uuation in cases not provided for in this Agreement.

4 The competent authorities of the Contracting States may commiim'cnte with each other directly for the purposes of applying the provisions of this Agreement. When it seems advisable in order vo reach agreement to have an oral exchange of opinions, such exchange may take place through a commission consisting of representatives of the competent authorities of the Contracting States.

Article 27

EXCHANGE OF INFORMATION

1. The competent authorities of the Conti acting States shall exchange such information as is necessaiy for carrying out the provisions of thb Agreement or for the prevention or detection of evasion of the taxes which are the subject of this Agreement. Any information so exchanged shall be treated as secret but may be disclosed only to peisons (in- cluding a court or administrative body) concerned with the assessment, collection, enforcement, investigation or prose- cution in respect of the taxes which are the subject of this Agreement, or' to poisons with respect to whom the infor- mation relates¹.

2. The exchange of information may also be on request

with reference to particular cases.

I. In no case shall the provisions' of paragraph 1 be construed <-o as to impose on a Contracting State the obli- gation :

(a) to cmiv out administrative mcasuies at variance with the laws or administrative practice of that or of the other Contracting State ;

fb) to supply infoimation which is 'not obtainable under tljc laws or in the normal coarse of the administration of thiit or of the other Contracting State ;

(c) to supply infoimation which would disclose any trade, business, industrial, commercial or profes- sional secret or trade process or information the disclosure of wsich would be contrary to public policy.

CHAPTER V[

FINAL PROVISIONS

Aitide 28

ENTRYTNTO FORCE

1. This Agreement shall he ratified and the instruments of ratification shall bo exchimged at .Singapore.

2. This Agreement shall enter into force on the date of the exchange of the instruments of ratification and its pro- visions shall have effect :

in) in India, in respect of income assessable for the assessment year commencing on the 1st day of April, 1979 and subsequent assessment years,

(b) in Singapore, for the year of assessment commenc- ing on the 1st day of January, 1979 and subse- quent years of assessment.

Article 29

TERMINATION

This Agreement shall continue in effect indefinitely but either of the Conducting- States, may, on or before the Ihiitieth day of June in any calendar year after the year 1985 give notice of termination to the other Contracting State and. in such event, th's Agreement shall cense to be effective :

(a) in India, in respect of income assessable for the assessment year commencing or the 1st day of April in the second calendar y-nr following the calendar year in which the notivC is given and the subsequent assessment years.

fb) in Singapore, in respect of in:omc assessable for the year of assessment commeidng on the 1st day of January in the second calendar year following the calendar year in which the notice is given and the subsequent years a assessment.

In witness whereof the undersigned bein^ duly authorised thereto, have signed the present Agreenenf.

Done in duplicate at Singapore this 20th day of Apill of 1he year one thousand nine hundred and cifihty-one in the English language.

Sd/- Hsu Tse-Kwang Sd/- B, Ivf Ozn

Tor the Govl, of Singapore For the Oovt. of India

[F. No. 11/31/69-FTD] R. R. KHOSLA, Jt. Secy.

PRINTED BY THB MANAGER. GOVT. 01- INDIA PR13SS, RING ROAD,NEW DELHI-110064

AND VUMUSHED BY THE CONTROLtER OI- PUHUOATIONR, D ^ I l - 1 1 0 U 5 4, 1 9 82