notification 44 date of issue 19/6/2013 notification 44 date of issue 19/6/2013

GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) New Delhi, the 19th June, 2013 NOTIFICATION (INCOME TAX) S.O.1766(E).—Whereas the annexed Agreement between the Government of the Republic of India and the Government of the Kingdom of Bahrain for the Exchange of Information with respect to taxes signed in New Delhi on the 31st May, 2012 shall come into force on the 11th day of April, 2013, being the date of later of the notifications after completion of the procedures as required by the respective laws for the entry into force of this Agreement, in accordance with the provisions of Article 11 of the said Agreement. Now, therefore, in exercise of powers conferred by section 90 of the Income- tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the said Agreement annexed hereto shall be given effect to in the Union of India with effect from the 11th day of April, 2013. Notification No 44/2013/F.NO.501/03/1994-FT&TR-II (K.Ramalingam) Joint Secretary to the Government of India 2 AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE KINGDOM OF BAHRAIN FOR THE EXCHANGE OF INFORMATION WITH RESPECT TO TAXES The Government of the Republic of India and the Government of the Kingdom of Bahrain, desiring to facilitate the exchange of information with respect to taxes have agreed as follows: Article 1 Object and Scope of the Agreement The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information. Article 2 Jurisdiction Information shall be exchanged in accordance with this Agreement without regard to whether the person to whom the information relates is, or whether the information is held by, a resident of a Contracting Party. However, a Requested Party is not obliged to provide information which is neither held by its authorities nor is in the possession or control of persons who are within its territorial jurisdiction. Article 3 Taxes Covered 1. The taxes which are the subject of this Agreement are: a) in India, taxes of every kind and description imposed by the Central Government or the Governments of political subdivisions or local authorities, irrespective of the manner in which they are levied; b) in Bahrain, income tax payable under Amiri Decree No. 22/1979. 2. This Agreement shall also apply to any identical or substantially similar taxes imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting Parties shall notify each other of any substantial 3 changes to the taxation and related information gathering measures which may affect the obligations of that Party pursuant to this Agreement. Article 4 Definitions 1. For the purposes of this Agreement, unless otherwise defined: a) the term “India” means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the U.N. Convention on the Law of the Sea; b) the term "Bahrain" means the territory of the Kingdom of Bahrain, as well as the maritime areas, seabed and subsoil, over which Bahrain exercises, in accordance with international law, sovereign rights and jurisdiction; c) the term “Contracting Party” means India or Bahrain as the context requires; d) the term “competent authority” means i) in the case of India, the Finance Minister, Government of India, or his authorized representative; ii) in the case of Bahrain, the Minister of Finance or his authorized representative; e) the term “person” includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting Parties; f) the term “company” means any body corporate or any other entity constituted or recognized under the laws of one or other of the Contracting Parties as a body corporate; g) the term “publicly traded company” means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold “by the public” if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors; h) the term “principal class of shares” means the class or classes of shares representing a majority of the voting power and value of the company; i) the term “recognised stock exchange” means (i) in India, the National Stock Exchange, the Bombay Stock Exchange, and any other stock exchange recognised by the Securities and Exchange Board of India; (ii) in Bahrain, the Bahrain Bourse and any other stock exchange recognised under the laws of Bahrain; and (iii) any other stock exchange which the competent authorities agree to recognise for the purposes of this Agreement. j) the term “collective investment fund or scheme” means any pooled investment vehicle, irrespective of legal form; 4 k) the term “public collective investment fund or scheme” means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed “by the public” if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors; l) the term “tax” means any tax to which this Agreement applies; m) the term “requesting Party” means the Contracting Party- (i) submitting a request for information to, or (ii) having received information from, or (iii) submitting a request for assistance in collection of tax to, the requested Party. n) the term “requested Party” means the Contracting Party- (i) which is requested to provide information, or (ii) which has provided information, or (iii) which is requested to provide assistance in collection of tax. o) the term “information gathering measures” means laws and administrative or judicial procedures that enable a Contracting Party to obtain and provide the requested information; p) the term “information” means any fact, statement, document or record in whatever form; 2. As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires or the competent authorities agree to a common meaning pursuant to the provisions of Article 10 of this Agreement, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.