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The Central Government notifies the agreement between India and Maldives for the avoidance of double taxation of income derived from international air transport. The agreement applies to enterprises designated by either government under the air services agreement. Income derived by an enterprise of a Contracting State from the operation of aircraft in international traffic is exempt from tax in the other Contracting State. The provisions have effect in India for income derived in any fiscal year beginning on or after the first day of April following the calendar year in which the agreement enters into force.
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6 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 2nd September, 2016 (INCOME TAX) S.O. 2853(E).—Whereas, an Agreement entered into between the Government of the Republic of India and the Government of the Republic of Maldives for Avoidance of Double Taxation of Income Derived From International Air Transport was signed at New Delhi on the 11th day of April, 2016 as set out in the Annexure to this notification (hereinafter referred to as the said Agreement); And whereas, in accordance with paragraph 2 of Article 6 of the said Agreement, the said Agreement entered into force on the 1st day of August, 2016, being the first day of the second month following the month in which later of the notifications of the completion of the procedures as required by the respective laws for entry into force of the said Agreement is given; And whereas, clause (i) of paragraph 3 of Article 6 of the said Agreement provides that the provisions of the said Agreement shall have effect in India in respect of income derived in any fiscal year beginning on or after the first day of April following the calendar year in which the Agreement enters into force; Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of said Agreement, as annexed hereto, shall be given effect to in the Union of India.
ANNEXURE AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE REPUBLIC OF MALDIVES FOR AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR TRANSPORT The Government of the Republic of India and the Government of the Republic of Maldives desiring to conclude an agreement for the avoidance of double taxation of income derived from international air transport have agreed as follows: Article 1 TAXES COVERED
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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 "Maldives" means the territory of the Maldives and includes its territorial sea, continental shelf, sea-bed, sub-soil (and their natural resources) and airspace, as well as any maritime zone in which the Maldives has sovereign rights, other rights and jurisdiction, according to the law of the Maldives and in accordance with international law, including the United Nations Convention on the Law of the Sea;
c) the terms "a Contracting State" and "the other Contracting State" mean the Republic of India or the Republic of Maldives as the context requires;
d) the term “tax” means “Indian tax” or “Maldives tax” as the context requires ;
e) the term “enterprise of a Contracting State” means an airline designated by the Government of that Contracting State in pursuance of the Agreement dated 24thDecember 2008, as maybe amended or revised from time to time, between the Government of Republic of India and the Government of Republic of Maldives relating to air services;
f) the term “international air traffic” means any transport by an aircraft operated by an enterprise of a Contracting State, except when the aircraft is operated solely between places in the other Contracting State ;
g) the term “operation of aircraft” means the business of transportation by air of passengers, livestock, goods or mail conducted by an enterprise of a Contracting State, including the sale of tickets and similar documents used for the purpose of transport;
h) the term “competent authority” means:
Article 4 RESIDUAL PROVISIONS The laws in force in either of the Contracting States shall continue to govern the assessment and taxation of income in the Contracting States except where express provision to the contrary is made in this Agreement. Article 5 MUTUAL AGREEMENT PROCEDURE
8 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
Article 7 TERMINATION
This Agreement shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may terminate the Agreement, by giving notice of termination through diplomatic channels, at least six months before the end of any calendar year beginning after the expiration of five years from the date of entry into force of the Agreement. In such event, the Agreement shall cease to have effect:
[Notification No. 77/2016/F.No.503/4/2013-SO/FT&TR-II(1)] RAJAT BANSAL, Jt. Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. HARINDRA KUMAR Digitally signed by HARINDRA KUMAR Date: 2016.09.07 09:19:01 +05'30'
