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of <h1>India-Japan Double Taxation Convention Signed: Promotes Investment, Technology with Concessional Tax Rates, Effective Post-Ratification Exchange</h1> A Convention for the avoidance of double taxation between India and Japan was signed in New Delhi on March 7, 1989, replacing the 1960 Agreement. The Convention emphasizes source taxation, allowing business profits to be taxed in the other country only if conducted through a Permanent Establishment. It provides concessional tax rates on income from dividends, interest, royalties, and fees for technical services, promoting technology and investment flow into India. The Convention will be effective 30 days after the exchange of Ratification Instruments between the two countries.
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