Termination clause permits diplomatic notice to end treaty application for future taxable periods and sets interpretive clarifications. Article 29 establishes a termination mechanism permitting either Contracting State to give diplomatic notice after five years from entry into force, causing the Convention to cease applying to income for taxable or previous years beginning in the calendar year following the notice. Accompanying bilateral notes record mutual understandings: specified Indian domestic provisions qualify as special incentive measures; the term 'tax' excludes penalties; definitions of 'person' and 'services or facilities' are clarified; permanent establishment profit attribution is tied to the part played by the permanent establishment; and limitations on deductibility to head office payments are set out, with shipping and aviation income treatments clarified.
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Provisions expressly mentioned in the judgment/order text.
Termination clause permits diplomatic notice to end treaty application for future taxable periods and sets interpretive clarifications.
Article 29 establishes a termination mechanism permitting either Contracting State to give diplomatic notice after five years from entry into force, causing the Convention to cease applying to income for taxable or previous years beginning in the calendar year following the notice. Accompanying bilateral notes record mutual understandings: specified Indian domestic provisions qualify as special incentive measures; the term "tax" excludes penalties; definitions of "person" and "services or facilities" are clarified; permanent establishment profit attribution is tied to the part played by the permanent establishment; and limitations on deductibility to head office payments are set out, with shipping and aviation income treatments clarified.
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