Interest

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....ner of the interest the tax so charged shall not exceed 10 per cent of gross amount of the interest.] 3. Notwithstanding the provisions of paragraph 2 : (a)  the Government of one of the States shall be exempt from tax in the other State in respect of interest derived directly or indirectly by that Government from that other State ; (b)  interest arising in one of th....

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....N.V. (Netherlands investment Bank for developing countries) ; -  all other institutions as may be agreed from time to time between the competent authorities of the States ; (b)  in the case of India, the Government of India and shall include : -  a political sub-division ; -  a local authority ; -  the Reserve Bank of India (Cen....

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....ecurities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. 7. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of one of the States, carries on business in the other State in which the interest arises, through a permanent establishment situated therein, or pe....

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....nt or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated. 9. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been....