TaxTMI 
TaxTMI 
Amendment in the convention between the Republic of India and the Republic of Finland for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital
X X X X Extracts X X X X
X X X X Extracts X X X X
.... other of the compliance of the constitutional requirements, as required by Paragraph 1 of Article 29 of the said Convention; And whereas the Central government, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), and section 44A of the Wealth Tax Act, 1957 (27 of 1957), directed, by Notification of the Government of India in the Ministry of Finance (Department of Revenue) (Foreign Tax Division) number G.S.R. 786(E) dated the 20th November 1984, that all the provisions of the Convention annexed to the said Notification shall be given effect to in the Union of India; And whereas the Government of Republic of Finland and the Gove....
X X X X Extracts X X X X
X X X X Extracts X X X X
....RTICLE I Paragraph 1 of Article 2 of the Convention shall be deleted and replaced by the following : "1. The taxes which are the subject of the present Convention are: (a) in Finland: (i) the state income taxes; (ii) the corporate income-tax; (iii) the communal tax; (iv) the church tax; (v) the tax withheld at source from interest; (vi) the tax withheld at source from non-residents' income; and (vii) the state capital tax; (hereinafter referred to as "Finnish tax'') (b) In India : (i) the income-tax including any surcharge thereon; and (ii) the wealth-tax; (hereinafter referred to as "Indian tax'&#....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he company paying the dividends is a resident and according to the laws of that State but the tax so charged shall not exceed 15 per cent of the gross amount of the dividends. 2. However, as long as an individual resident in Finland is entitled to a tax credit in respect of dividends paid by a company resident in Finland, the following provisions of this paragraph shall apply in Finland instead of the provisions of paragraph 1. Dividends paid by a company which is a resident of Finland to a resident of India shall be exempt from Finnish tax on dividends. 3. The provisions of paragraphs 1 and 2 shall not affect the taxation of the company in respect of the profits out of which the dividends are paid." ARTICLE IV....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oned State. 4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds and debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. 5. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establish....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) in the case of royalties within sub-paragraph (b) of paragraph 3 and fees for technical services defined in sub-paragraph (b) of paragraph 4, 10 per cent of the gross amount of such royalties and fees for technical services. 3. For the purposes of this Article, the term "royalties" means: (a) payments of any kind received as a consideration for the use of, or the right to use, any copyright of a literary, artistic or scientific work, including cinematograph films or work on film, tape, or otherwise means of reproduction for use in connection with radio or television broadcasting any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific exp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the rental of ships, aircraft, containers or other equipment used in connection with the operation of ships, or aircraft in international traffic; (c) for teaching in or by educational institutions; (d) for services for the private use of the individual or individuals making the payment; or (e) to an employee of the person making the payments or to any individual or partnership for professional services as defined in Article 15 " ARTICLE VI 1. Sub-paragraph (b) of paragraph 1 of Article 24 the Convention shall be deleted and replaced by the following: "(b) Dividends paid by a company being a resident of India to a company which is a resident of Finland and which controls directly at least 10 per cen....