In the paragraph 3 of Article 12, in the list of Institution, of the DTAA between Government of the Republic of India and the Government of the Republic of Finland the following entry has been inserted:

FINNVERA and Finnish Export Credit.

Impact of the above insertion:

Interest arising in India shall be exempt from Indian tax if the interest is paid to FINNVERA or Finnish Export Credit on or after 28th day of August, 2007.

Notification No. 5/2008 Income Tax, Dated 10-1-2008

Interest exemption for payments to designated Finnish export credit agencies under the India-Finland tax treaty. Interest arising in India paid to designated Finnish export credit agencies added to paragraph 3 of Article 12 of the India-Finland DTAA is exempt from Indian tax; the amendment qualifies those institutions as eligible recipients for the exemption and applies from the effective insertion date reflected in the notification.