TaxTMI 
TaxTMI 
Agreement for avoidance of Double Taxation between the Govt. of India and the Govt. of Singapore
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....uble Taxation and the prevention of fiscal evasion with respect to taxes on income. The Government of the Republic of India and the Government of the the Republic of Singapore. DESIRING to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, HAVE AGREED as follows: CHAPTER I Scope of the Agreement ARTICLE 1 Personal Scope This Agreement shall apply to persons who are resident of one or both of the Contracting States. ARTICLE 2 Taxes covered 1. The taxes to which this Agreement shall apply are: (a) in the case of India: (i) the income-tax and any surcharge on income-tax imposed under the Income-tax Act, 1961 (43 of 1961); (ii) the surtax imposed under the Companies (Profits) Surtax Act, 1964 (7 of 1964); (hereinafter referred to as " Indian tax "). (b) in the case of Singapore: the income-tax (hereinafter referred to as " Singapore tax "). 2. This agreement shall also apply to any identical or substantially similar taxes which are subsequently imposed in addition to, or in place of, the taxes referred to in paragraph 1 of this Article. 3. The competent au....
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.... following rules; (a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer; (b) if the Contracting State with which his personal and economic relations are closer cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; (c) if he has an habitual abode in both Contracting States or in neither of them, the competent authorities of the Contracting States shall determine the question by mutual agreement. Where by reason of the provisions of paragraph 1 of this Article, a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated. ARTICLE 5 Permanent Establishment 1. For the purposes of this Agreement, the term " permanent establishment " means a fi....
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....ragraph 6 of this Article, a person acting in a Contracting State for or on behalf of an enterprise of the other Contracting State shall be deemed to be a permanent establishment of that enterprise in the first-mentioned State if: (i) he has, and habitually exercises in that State, an authority to conclude contracts for or on behalf of the enterprise, unless the activities of the persons are limited to the purchase of goods or merchandise for the enterprise; or (ii) he maintains in the first-mentioned Contracting State a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders for or on behalf of the enterprise; or (iii) he habitually secures orders in the first-mentioned Contracting State exclusively or almost exclusively, for the enterprise or any other enterprise which is controlled by it or has a controlling interest in it. 6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other Contracting State through a broker, a general commission agent or any other agent of an independent status, where such persons are ac....
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....it were an independent enterprise engaged in the same or similar activities under the same or similar conditions and deal wholly and independently with the enterprise of which it is a permanent establishment. In any case, where the correct amount of profits attributable to a permanent establishment is incapable of determination or the ascertainment thereof presents exceptional difficulties, the profits attributable to the permanent establishment may be estimated on a reasonable basis. 3. In the determination of the income or profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. 4. No income or profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purpose of this Article, the term " income or profits " means income derived by an enterprise from the conduct of a trade or business; but does not include income de....
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....mean income from the carriage of passengers, mail, livestock or goods shipped in that other Contracting State. 3. Paragraph 1 shall not apply to profits arising as a result of coastal traffic. ARTICLE 10 Associated Enterprises Where (a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State. and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any income or profits which would, but for those conditions, have accrued to one of the enterprises, but by reason of those conditions, have not so accrued may be included in the income or profits of that enterprise and taxed accordingly. ARTICLE 11 Dividends 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may ....
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....g the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated. 3. Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the interest paid, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Agreement. 4. The term " interest " as used in this Article means income from Government securities, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits and de....
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....visions of Articles 15, 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that Contracting State unless the employment is exercised in the other Contracting State. If the employment is so exercised such remuneration as is derived therefrom may be taxed in that other Contracting State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of Singapore in respect of an employment exercised in India shall not be taxed in India if: (a) he is present in India for a period or periods not exceeding in the aggregate 183 days during the " previous year " concerned; and (b) the remuneration is paid by, or on behalf of an employer who is a resident of Singapore; (c) the remuneration is not borne by a permanent establishment which the employer has in India. 3. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of India in respect of an employment exercised in Singapore shall not be taxed in Singapore if: (a) he is present in Singapore for a period or periods not exceeding in the aggregate 183 days d....
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....e public entertainers or athletes to that State is supported, wholly or substantially, from the public funds of the Government of the other Contracting State. 2. For the purposes of this Article, the term " Government " includes a State Government, a political sub-division, or a local or statutory authority of either Contracting State. ARTICLE 17 Pensions and Annuities 1. Subject to the provisions of paragraphs 1 and 2 of Article 18, pensions or annuities derived by a resident of a Contracting State shall be taxable only in that Contracting State. 2. The term " pensions " means periodic payments made in consideration of past employment or by way of compensation for injuries received. 3. The term " annuities " means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth. ARTICLE 18 Governmental Functions 1. Remuneration or pensions paid by, or out of funds, created by a Contracting State, or a political sub-division or a local or statutory authority thereof, to any individual in resp....
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....ng State in connection with that visit shall be exempt from tax in that other Contracting State on- (a) the amount of such grant, allowance or award; (b) all remittances from the first-mentioned Contracting State for the purposes of his maintenance, education or training; and (c) any remuneration (not exceeding 7,500 Indian Rupees or its equivalent sum in Singapore currency per annum) in respect of services in that other Contracting State if the services are performed in connection with his study, research, training or are incidental thereto. 3. An individual who is a resident of a Contracting State and who is temporarily present in the other Contracting State solely as an employee of, or under contract with, an enterprise of the first-mentioned Contracting State solely for the purpose of acquiring technical, professional or business experience from a person other than such enterprise, for a period not exceeding twelve months from the date of his first arrival in that other Contracting State in connection with that visit shall be exempt from tax in that other Contracting State on- (a) all remittances from the first-mentioned Contracting State for the purposes of his ....
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....espect of any income derived by such Government from that other Contracting State. 2. For the purposes of paragraph 1 of this Article, the term " Government "- (a) in the case of India, means the Government of India and shall include- (i) the Government of the States and the Union Territories of India; (ii) the Reserve Bank of India; (iii) any such institution or body as may be agreed from time to time between the two Contracting States. (b) in the case of Singapore, means the Government of Singapore and shall include- (i) the Monetary Authority of Singapore; (ii) the Board of Commissioners of currency; (iii) any such institution or body as may be agreed from time to time between the two Contracting States. ARTICLE 22 Income not Expressly Mentioned Items of income which are not expressly mentioned in the foregoing Articles of the Agreement may be taxed in accordance with the taxation laws of the respective Contracting States. ARTICLE 23 Limitation of Relief Where this Agreement provides (with or without other conditions) that income from sources in a Contracting State shall be exempt from tax, or taxed at a reduced rate in that Contracti....
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....n modified thereafter or has been modified in minor respects so as not to affect its general character. 3. (a) The amount of Indian tax payable, under the laws of India and in accordance with the provisions of this Agreement, whether directly or by deduction, by a resident of Singapore, in respect of income from sources within India which has been subjected to tax both in India and Singapore, shall be allowed as a credit against Singapore tax payable in respect of such income, but in an amount not exceeding that proportion of Singapore tax which such income bears to the entire income chargeable to Singapore tax. (b) For purposes of the credit referred to in sub-paragraph (a) above, there shall be deemed to have been paid by the resident of Singapore the amount which would have been payable as Indian tax but for a deduction allowed in computing the taxable income or an exemption or reduction of tax granted for that year under:- (i) sections 10(4), 10(4A), 10(15)(iv), 32A, 33A, 35C, 54E, 80CC, 80HH, 80J and 80K of the Income-tax Act, 1961 (43 of 1961), so far as they were in force and have not been modified since the date of signature of this Agreement, or have been modified....
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.... shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned Contracting State are or may be subjected in the same circumstances and under the same conditions. 6. In this Article, the term " taxation " means taxes which are the subject of this Agreement. ARTICLE 26 Mutual agreement procedure 1. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Agreement, he may, notwithstanding the remedies provided by the national laws of those States, present the case to the competent authority of the Contracting State of which he is a resident. The case must be presented within three years from the date of the assessment or of the withholding of tax at the source, whichever is later. 2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by ....
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....nto force 1. This Agreement shall be ratified and the instruments of ratification shall be exchanged at Singapore. 2. This Agreement shall enter into force on the date of the exchange of the instruments of ratification and its provisions shall have effect: (a) in India, in respect of income assessable for the assessment year commencing on the 1st day of April, 1979, and subsequent assessment years. (b) in Singapore, for the year of assessment commencing on the 1st day of January, 1979, and subsequent years of assessment. ARTICLE 29 Termination This Agreement shall continue in effect indefinitely but either of the Contracting States, may, on or before the thirtieth day of June in any calendar year after the year 1985 give notice of termination to the other Contracting State and, in such event, this Agreement shall cease to be effective: (a) in India, in respect of income assessable for the assessment year commencing on the 1st day of April in the second calendar year following the calendar year in which the notice is given and the subsequent assessment years. (b) in Singapore, in respect of income assessable for the year of assessment commencing on the 1st....