TaxTMI 
TaxTMI 
Agreement between the Government of the Republic of India and the Government of the Republic of India and the Government of the Swiss Confederation or avoidance for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes
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....all be given effect to in the Union of India. AGREEMENT BETWEEN THE REPUBLIC OF INDIA AND THE SWISS CONFEDERATION FOR THE AVOIDENCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE SWISS FEDERAL COUNCIL DESIRING to conclude in Agreement for the avoidance of double taxation with respect to taxes on income, HAVE AGREED as follows: ARTICLE 1 PERSONAL SCOPE This Agreement shall apply to persons who are residents 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: the income tax including any surcharge thereon; and (b) In the case of Switzerland: the federal, cantonal and communal taxes on income (total income earned income form capital, industrial and commercial profits, capital gains, and other items of income). 2. The Agreement shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of Signature of the present Agreement in addition to or in place of the taxes referred to in paragrap....
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....ng State, except when the aircraft is operated solely between places in the other Contracting State; (j) the term "operation of aircraft" shall mean business of transportation by air of passengers, mail, livestock or goods carried on by the owners or lessees or charteres of aircraft, including the sale of tickets for such transportation on behalf of other enterprises the incidental lease of aircraft connected with such transportation; (k) the term "fiscal year" means; (i) in the case of India, the "previous year" as defined in the Income-tax Act of India; and (ii) in the case of Switzerland, the calendar year. 2. In the application of the provisions of this Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws in force in that State relating to the taxes which are the subject of this Agreement. ARTICLE 4 FISCAL DOMICILE 1. For the purposes of this Agreement, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to taxation therein by reason of his domicile, residence, place of....
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....supervisory activity continues for a period of more than six months; (k) an installation or structure used for the exploration or development of natural resources for more than 90 days; and (l) the furnishing of technical services, other than services as defined in Article 12, within a Contracting State by an enterprise through employees or other personnel, but only if:- (i) activities of that nature continue within that State for a period or periods aggregating more than 90 days within any twelve month period; or (ii) the services are performed within that State for a related enterprise (within the meaning of paragraph 1 of Article 9) for a period or periods aggregating more than 30 days within any twelve-month period. 3. the term "permanent establishment" shall not be deemed to include : (a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise; (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display; (c) the maintenance of a stock of goods or merchandise belonging to the enterpri....
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....nt establishment or otherwise), shall not, of itself, constitute for either company a permanent establishment of the other. ARTICLE 6 INCOME FROM IMMOVABLE PROPERTY 1. Income from immovable property may be taxed in the Contracting State in which such property is situated 2. The term "immovable property" shall be defined in accordance with the law of the Contracting State in which the property is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, oilwells, quarries and other places of extraction of natural resources. Ships and aircraft shall not be regarded as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property. 4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise, and to income from ....
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.... profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article. ARTICLE 8 AIR TRANSPORT 1. Profits from the operation of aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. 2. The provisions of paragraph 1 shall also apply to profits from participation in a pool, a joint business or an international operating agency. ARTICLE 9 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 profi....
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....st arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that state, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 15 per cent of the gross amount of interest. 3. Notwithstanding the provisions of paragraph 2, where the interest is paid to a bank carrying on a bona fide banking business or to an enterprise which holds directly or indirectly at least 20 per cent of the capital of the company paying the interest which are a resident of the other Contracting State and are the beneficial owner of the interest the tax so charged in the Contracting State in which the interest arises shall not exceed 10 per cent of the gross amount of the interest. 4. Notwithstanding the provisions of paragraphs 2 and 3 : (a) interest arising in Switzerland and paid to a resident of India shall be taxable only in India if it is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the Export-Import Bank of Indi....
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....rmanent 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. 8. Where, owing to a special relationship between the payer and the beneficial owner 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 beneficial owner 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 ARTICLE 12 ROYALTIES AND FEES FOR INCLUDED SERVICES 1. Royalties and fees for included services arising in a Contracting state and pa d to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties and fees for included services may also be taxed in t....
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....yments of any kind to any person in consideration for the rendering of any technical or consultancy services (including through the provision of services of technical or other personnel) if such services: (i) are ancillary and subsidiary to the application or enjoyment of the right, property or information for which a payment described in sub-paragraph (a) of paragraph 3 is received; or (ii) make available technical knowledge, experience, skill, know-how or processes, or consist of the development and transfer of a technical plan or technical design. 5. Notwithstanding paragraph 4, "fees for included services" does not include amounts paid: (a) for services that are ancillary and subsidiary, as well as inextricably and essentially linked, to the sale of property; (b) for teaching in or by educational institutions; (c) for services for the personal use of the individual or individuals making the payment; or (d) to an employee of the person making the payments or to any individuals (other than a company) for professional services falling under article 14. 6. The provisions of paragraphs 1 and 2 shall not apply if the benefic....
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....State in which the place of effective management of the enterprise is situated. 4. Gains from the alienation of shares of a company the property of which consists principally of immovable property situated in a Contracting State, may be taxed in that State. 5.(a) Gains from the alienation of share in a company which is a resident of a contracting state shall be taxable only in the contracting state of which the alienator is a resident. (b) Notwithstanding the provisions of sub-paragraph (a), India may tax gains from the alienation of shares in a company which is a resident of India. (i) if the shares from part of at least a 10 per cent interest in the capital stock of that company; or (ii) in other cases if the alienation takes place to a resident of that State. In these cases the provisions of paragraph 1, sub-paragraph (b) of Article 21 shall apply, 6. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3, 4 and 5, shall be taxable only in the Contracting State of which the alienator is a resident. ARTICLE 14 PERSONAL SERVICES 1. Subject to the provisions of Articles 15, 17, 18, 19 and 20, salaries, w....
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....rson, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in that Contracting State. 3. The provisions of paragraphs 1 and 2 shall not apply if the visit to a Contracting State of the entertainer or the athlete is directly or indirectly supported, wholly or substantially, from the public funds of the other Contracting State, including any political sub-division, local authority or statutory body of that other State. ARTICLE 17 PENSION AND ANNUITIES 1. Any pension (other than a pension referred to in Article 18) or annuity derived by a resident of a Contracting State shall be taxable only in that State. 2. The term "pension" means a periodic payment made in consideration of past employment or by way of compensation for injuries received in the course of the performance of services. 3. The term "annuity" means 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 GOVERNMENT REMUNERATION AND PENSIONS 1. Remuneration, other than a pension, paid ....
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....INATION OF DOUBLE TAXATION 1. (a) Subject to any provisions of the law of India which may from time to time be in force and which relates to the relief of taxes paid in a country outside India, where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Switzerland, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in Switzerland whether directly or by deduction. Such deduction shall not, however, exceed that part of the income-tax (as computed before the deduction is given) which is attributable to the income which may be taxed in Switzerland. (b) Where a resident of Switzerland derives gains from the alienation of shares which may be taxed in India according to Article 13, paragraph 5, sub-paragraph (b), India shall allow as a deduction from tax on that income, an amount equal to the income-tax paid in Switzerland on these capital gains. The deduction shall not, however, exceed that part of the Indian income-tax, which is imposed on these capital gains. 2. (a) Where a resident of Switzerland derives income which, in accordance with the provisions of ....
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.... (aa) a deduction of 5 per cent of the gross amount of royalties or of fees for included services covered by Article 12, paragraph 4, sub-paragraph (b) (i); (bb) a deduction of 10 per cent of the gross amount of fees for included services covered by Article 12, paragraph 4, sub-paragraph (b) (ii); (2) for royalties and fees for included services referred to in Article 12, paragraph 2, sub-paragraph (a) (i) (B): (aa) a deduction of 10 per cent of the gross amount of royalties or of fees for included services covered by Article 12, paragraph 4, sub-paragraph (b) (1); (bb) a deduction of 15 per cent of the gross amount of fees for included services covered by Article 12, paragraph 4, sub-paragraph (b) (ii); C. during the subsequent years for which this Agreement has effect: (aa) a. deduction of 5 per cent of the gross amount of royalties referred to in Article 12, paragraph 2, sub-paragraph (a) (ii) or of fees for included services covered by Article 12, paragraph 4, sub-paragraph (b) (i); (bb) a deduction of 10 per cent of the gross amount of fees for included services covered by Article 12, paragraph 4, sub-paragr....
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....ement. ARTICLE 23 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 his 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 first notification of the action giving rise to taxation not in accordance with the Agreement. 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 mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. 3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double taxation in cas....
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.... of income arising in any fiscal year beginning on or after the first day of April next following the calendar year in which the Agreement enters into force; and (b) in Switzerland, in respect of income arising in any fiscal year beginning on or after the first day of January next following the calendar year in which the Agreement enters into force. 3. The Agreement between the Government of India and the Swiss Federal Council concerning the taxation of enterprises operate aircraft signed at New Delhi on August 28, 1958 (in this Article called "the 1958 Agreement") shall cease to have effect with respect to taxes to which the Agreement applies when the provisions of this Agreement become effective in accordance with paragraph 2. 4. The 1958 Agreement shall terminate on the expiration of the last date on which it has effect in accordance with the foregoing provisions of this Article ARTICLE 27 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, give notice of termination to the other Contracting State and, in such event, this Agreement shall cea....
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....the agreement of the enterprise to supply goods or merchandise under the terms and conditions specified in the order. 2. With reference to Article 7 With respect to paragraph 1 of Article 7 it is understood that the words "directly or indirectly" mean, for the purposes of this Article, that where a permanent establishment takes an active part in negotiating, concluding or fulfilling contracts entered into by the enterprise, then, notwithstanding that other parts of the enterprise have also participated in those transactions there shall be attributed to the permanent establishment that proportion of profits of the enterprise arising out of those contracts as the contribution of the permanent establishment to those transactions bears to that of the enterprise as a whole. It is also understood that profits shall be regarded as attributable to the permanent establishment to the above - mentioned extent, even when the contracts in question are made directly with the head office of the enterprise rather than with the permanent establishment In the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or prem....