Double taxation avoidance treaty allocates taxing rights, limits source withholding and provides MAP, information exchange and collection assistance. Bilateral agreement governs avoidance of double taxation between India and the German Democratic Republic, applying to residents and specified taxes (Indian income and wealth taxes; specified GDR income, corporate and property taxes and similar successor taxes). It allocates taxing rights for business profits to the State of residence unless business is carried on through a permanent establishment in the other State, prescribes methods for attributing profits to such establishments, caps source withholding on dividends, interest and royalties for beneficial owners, allocates capital gains taxation by type, and provides non-discrimination, mutual agreement, exchange of information and assistance in collection mechanisms.