REGISTERED No. D. (D.N.)-72
The Gazette of India
EXTRAORDINARY
PART II—Section 3—Sub-Section (i)
PUBLISHED BY AUTHORITY
No. 115] NEW DELHI, THURSDAY, MARCH 31, 1983/CHAITRA 10, 1905
Separate Paging is given to this Part in order that it may be filed as a separate compilation
1550 GI/82
(1)
2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]3
ing State to each- other of completion of the procedures re- quired bi their respective laws, as required by Article 5 of the sfiid Agreement.
Now therefore, in exercise of the powers conferred by wction '90 of the Income-tax Act, 1961 (43 of 1961) and ,ection 24A of th
ANNEXURE
AGREEMENT
BETWEEN
THE GOVERNMENT Oh THE REPUBLIC OF INDIA
AND
THE GOVERNMENT ot THE STATE OF KUWAIT
FOR
THF AVOIDANCE Oh DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR TRANSPORT
The Government of India and the Government of Kuwait Desiring to conclude an Agreement for the avoidance of double taxation of income derived from international ail" tiansport.
Have agreed as follows :
\rticle 1
1. The existim; tuxes to which this Ajiieement shall apply
are :
(n ) in [he case of Kuwait :
(I) the income-tax imposed under the Income Tax Decree No. 3 of 1955;
t'li) the additional income-tax imposed under tho Law No. 34 of 1970 (hereinafter referred to as "Kuwaiti lax").
(b) in the case of India :
(i) the income-ta\r i n c h i ng any (.uichnrgi; thereon 1m- pon'd under the Income-tax Acl, 1961 (43 of 1961);
(II) rhc surtax imposed under tho companies (Piofits) Surtax Act, 1964 (7 of 1964) (hereinafter re- ferred to as "Indian tax";.
2. This Agreement shall also apply to any identical or sub- stantially similar taxes which are imposed after the date of signatuie of this Agreement in addition to, or in place of, the taxes relerred to in paragraph 1 of this Article.
Article 2
1. In this Agreement, unless the context otherwise requires:
(a) the term "Kuwait" means the territory of Kuwait and includes the territorial sea and airspace above;
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
INCOME-TAX
New Delhi, the 31st March, 1983
C.S.R. 302(E).—Whereas the annexed Agreement between the Government of the Republic of India and the Govern- ment of the State of Kuwait for the avoidance of double taxation of Income derived from international air tiansport hai come into force on the notification by both the Contract- (b) the term "India" means the territory of India and includes the territorial sea and airspace above it as well as any other maritime zone referred to in the Territorial Waters, Continental Shelf, Exclusive Eco- nomic Zone and other Maritime Zones Art, 1976 (Act No. 80 of 1976), in which India has J&rtafn rights and to the extent that these rights can be exercised therein as if such maritime zone is a part of the territory of India:
(c) tho term "a Contracling Stnte1' and the "other Con- tracting State" mem Kuwait x>r India, as he context requires;
(f) the term "tax" means "Kuwaiti ta;," 01 "Indian tax" as the context requires ;
fc") the term "enterprise of a Contracting State" means an airline which iq authorised by tho Government
4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART I I - S E C. 3(i)Iof that State by a general or special arrangement between the two Contracting States to operate sche- duled or non-scheduled flights betv.een. or beyond
their territories;
(f\ the term '"international traffic" means any ttanspoit by an ahciaft operated by an enterprise of a Con- tracting State, except when the aircraft is operated solely between places in the other Contracting State;
(g) the expression "operation o£ aircraft" means a busi- ness of carnage by air of peisons, livestock, bag- gage, caigo or mail and includes the sale of tickets and airway bills for, and ths provision of services connected with, such carriage either for ihe enier- prisc itself 01 tor any other enterprise engaged in such operations.
2. In the application of the provisions of this Agreement by one of {lie Contracting States, any term used but not do- lined herein shall, unless the context otherwise- requires, have the meaning which it has under t'le laws in force in lhat State relating (o the taxes which aic the subjects of this Agi cement.
Article 3
1. Profits dciivcd by an enterprise of a Contracting Slate from tbj operation of aircraft in international traffic shall be exempt liom ta\ in the other Contracting State.
2. The provisions of paragiaph 1 shall also apply to the share ol profits from the opcuation
3. For the purpose of paragraph 1, inleiest on funds diiectly conn.-cteJ with the opeiarion. of ainaft in inter- national (raffle shall be i"gard"i as income fioiu the opeia- tion of aircraft.
Article 4
The laws in foice in either of tho Contracting Stales will continue to govern the assessment and taxation of income in the contracting States except where express provisions to Ihc
contrai y is made in this An'cement.
Article 5
1. This Agreement shall bo approved in accordance with the laws in force in each of the Contracting States. It] shall enter into iorce thirty days after ihe exchange of letters certi- fying that the proper procedure was fulfilled in each Con- tracting State. Th eexebange of letters shall take place at New Delhi,
2. The provisions of this Agieciiient shall have effect in
respect of the earnings arisinn from 1-1-1967.
3. No action would be taken to reopen assessments in res-
pect of the period prior to 1-1-1967.
Aillclc 6
This Agreement shall continue in effect indefinitely but either Contracting State may, on or before the thirtieth day of June in any calendar year after the year 1986 give notice OL tcimination to the other Contracting State and in such event this Agreement shall cease to be effective ;
(.H Tn Kuwait, in respect of any year of tax commence- ing on or after the 1st day of July of the second calendar year following the year in which the notice
is given ;
(b) In India, in respect of any assessment y<*nr com- mencing on or after the 1st day of April of the second calendar year following the year in w,hich
the notice is given.
In witness whereof the undersigned, duly authorised theieto
have signed the present Agreement,
Done in duplicate at Kirwait this twenty first day of Apiil one thousand nine hundred and eiglXytwo in the Hindi, Arabic and English languages and in the event of any doubt, the English text shall prevail.
Sd/-
For the Government of India
Sd/-
For the Government of Kuwait.
[F. No. 501/1/80-FrD]
R. R. KHOSLA, Jt. Secy.
PK1NTLD 11V THL M\NAGER, OOVT. OF INDIA, PRESS, RING ROAD, NEW DELIII-1 1 0 0 64
AND PUDJJSHED BY THE CONTROLLPR OF PUBLICATIONS, DELHI-110054, 1983