Double taxation avoidance treaty establishes allocation of taxing rights, tax credit relief, and a mutual agreement procedure. The Convention provides a bilateral treaty framework for avoidance of double taxation and prevention of fiscal evasion between India and Libya, applying to income taxes and similar levies, and giving effect in India under section 90. It defines residency and a functional concept of permanent establishment, allocates taxing rights across categories of income (business profits, immovable property, shipping, dividends, interest, royalties, personal services, pensions, etc.), authorises transfer pricing adjustments for associated enterprises, provides relief by foreign tax credit, and establishes mutual agreement and information exchange procedures, confidentiality safeguards, entry into force and termination rules.