Amending the Agreement between the Government of the United Arab Emirates and the Government of the Republic of India for the avoidance of double taxation

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....ble taxation and the prevention of fiscal evasion with respect to taxes on income which was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R 710(E), dated the 18th November, 1993 shall enter into force on the 3rd day of October, 2007, being the date of receipt of the later of the notifications after completion of the procedures as required by the respective laws for the entry into force of this Protocol, in accordance with Article 8 of the said Protocol. Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby directs that all the provisions of the said Protocol annexed hereto amending the Agre....

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....in by reason of his domicile, residence, place of management or any other criterion of a similar nature. This term, however, does not include any person who is liable to tax in India in respect only of income from sources in India; and (b) in the case of the United Arab Emirates: an individual who is present in the UAE for a period or periods totaling in the aggregate at least 183 days in the calendar year concerned, and a company which is incorporated in the UAE and which is managed and controlled wholly in UAE. 2. For the purposes of paragraph 1: (a) The Republic of India, its political subdivisions or local authority thereof shall be deemed to be resident of the Republic of India; (b) The United Arab Emirates and its politica....

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.... shall be replaced by the following: "2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends, the tax so charged shall not exceed 10%." ARTICLE 4 Paragraph 3 of Article 13 (Capital Gains) of the Agreement shall be replaced by the following: "3. Gains from the alienation of shares of the capital stock of a company the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that State. 4. Gains from the alienation of shares other than those mentioned in paragraph 3 in a company whic....

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....cle 7." ARTICLE 7 An Article on 'Limitation of Benefits' (Article 29) shall be included in the Agreement, as under: "An entity which is a resident of a Contracting State shall not be entitled to the benefits of this Agreement if the main purpose or one of the main purposes of the creation of such entity was to obtain the benefits of this Agreement that would not be otherwise available. The cases of legal entities not having bonafide business activities shall be covered by this Article." Articles 29, 30 and 31 shall be renumbered as Articles 30, 31 and 32 respectively. ARTICLE 8 This Protocol shall form an integral part of the Agreement. Each of the Contracting States shall notify to the other the completion of the ....