TaxTMI 
TaxTMI 
Termination
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.... authentic. In case of any divergence of interpretations, the English text shall prevail. For the Government of the Republic of India Sd/- (G.N. Gupta) For the Government of Japan Sd/- (Eijiro Noda) (INDIAN NOTE) Excellency, I have the honour to refer to sub-paragraph (c) of paragraph 3 of article 23 of the Convention between the Government of the Republic of India and the Government of Japan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income which was signed today and to confirm, on behalf of the Government of the Republic of India the following understanding reached between the Government of the Republic of India and the Government of Japan : The measures set forth in the following sections of the Income-tax Act, 1961 (43 of 1961), of India, are "the special incentive measures designed to promote economic development in India, effective on the date of signature of this Convention" referred to in the said sub-paragraph: (i) Section 10(15)(iv) --relating to exemption from tax on certain interest; (ii) Section 10A --relating t....
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.... of mineral oils. 5. It is understood that the provisions of paragraph 6 ofarticle 5 of the Convention shall apply to the use of facilities solely for the purpose of delivery of goods or merchandise belonging to the enterprise or to the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of delivery unless sales of such goods or merchandise are effected in that other Contracting State. 6. With reference to paragraph 1 of article 7 of the Convention, it is understood that by using the term "directly or indirectly attributable to the permanent establishment", profits arising from transactions in which the permanent establishment has been involved shall be regarded as attributable to the permanent establishment to the extent appropriate to the part played by the permanent establishment in those transactions. It is also understood that profits shall be regarded as attributable to the permanent establishment to the above-mentioned extent, even when the contract or order relating to the sale or provision of goods or services in question is made or placed directly with the overseas head office of the enterprise rather than with the perma....
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.... Excellency the assurance of my highest consideration. (INDIAN NOTE) Excellency, I have the honour to acknowledge the receipt of Your Excellency's note of today's date which reads as follows : (JAPANESE NOTE) I have further the honour to confirm the understanding contained in Your Excellency's Note, on behalf of the Government of the Republic of India. I avail myself of this opportunity to renew to Your Excellency the assurance of my highest consideration. IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention. DONE at New Delhi in duplicate on this seventh day of March, 1989, in the Hindi, Japanese and English languages, all the three texts being equally authentic. In case of any divergence of interpretations, the English text shall prevail. (Sd/-) G.N. Gupta For the Government of the Republic of India (Sd/-) Eijiro Noda For the Government of Japan New Delhi, March 7, 1989 Excellency, I have the honour to refer to sub-paragraph (c) of paragraph 3 of article 23 of the Convention between the Government of the Republic....
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....nderstanding reached between the Government of the Republic of India and the Government of Japan : The measures set forth in the following sections of the Income-tax Act, 1961 (43 of 1961), of India are "the special incentive measures designed to promote economic development in India, effective on the date of signature of this Convention" referred to in the said sub-paragraph : (i) Section 10(15)(iv) --relating to exemption from tax on certain interest; (ii) Section 10A --relating to special provision in respect of newly established industrial undertakings in free-trade zones; (iii) Section 32AB --relating to investment deposit account, etc., with respect to investment in plant and machinery, etc.; (iv) Section 80HH. --relating to deduction in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas; (v) Section 80-I --relating to deduction in respect of profits and gains from industrial undertakings after a certain date, etc. I have further the honour to request Your Excellency to be good enough to confirm the foregoing un....
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....enterprise solely for the purpose of delivery unless sales of such goods or merchandise are effected in that other Contracting State. 6. With reference to paragraph 1 of article 7 of the Convention, it is understood that by using the term "directly or indirectly attributable to that permanent establishment", profits arising from transactions in which the permanent establishment has been involved shall be regarded as attributable to the permanent establishment to the extent appropriate to the part played by the permanent establishment in those transactions. It is also understood that profits shall be regarded as attributable to the permanent establishment to the above-mentioned extent, even when the contract or order relating to the sale or provision of goods or services in question is made or placed directly with the overseas head office of the enterprise rather than with the permanent establishment. 7. With reference to paragraph 3 of article 7 of the Convention, it is understood that in India, the deductions in respect of the executive and general administrative expenses as referred to in the said paragraph shall be allowed in accordance with the domestic law of India, but ....
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....nour to acknowledge the receipt of Your Excellency's note of today's date which reads as follows : "I have the honour to refer to the Convention between the Government of Japan and the Government of the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income which was signed today and to confirm, on behalf of the Government of Japan, the following understanding reached between the two Governments: 1. With reference to sub-paragraph (b) of paragraph 1 of article 2 of the Convention, any taxes which are identical or substantially similar to the surtax imposed under the Companies (Profits) Surtax Act, 1964, but abolished subsequently, and which are imposed in India after the date of signature of the Convention shall be regarded as the identical or substantially similar taxes referred to in paragraph 2 of article 2 of the Convention 2. With reference to sub-paragraph (d) of paragraph 1 of article 3 of the Convention, the term "tax" shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which the Convention applies or which represents a penalty im....