Taipei Economic and Cultural Center in New Delhi and
India-Taipei Association in Taipei, 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:

Article 1 PERSONS COVERED
This Agreement shall apply to persons who are residents of one
or both of the territories.

Article 2 TAXES COVERED
1. This Agreement shall apply to taxes on income imposed on
behalf of each territory or of its subdivisions or local
authorities, irrespective of the manner in which they are
levied.
2. There shall be regarded as taxes on income all taxes imposed
on total income, or on elements of income, including taxes on
gains from the alienation of movable or immovable property
and taxes on the total amounts of wages or salaries paid by
enterprises.
3. The existing taxes to which the Agreement shall apply are in
particular:
a) in the territory in which the taxation law administered by
the Ministry of Finance in Taipei is applied:
(i) the profit seeking enterprise income tax;
(ii) the individual consolidated income tax; and
(iii) the income basic tax,
including the supplements levied thereon;
b) in the territory in which the taxation law administered by
the Ministry of Finance of India is applied: the income
tax, including any surcharge thereon.
4. The Agreement shall apply also to any identical or
substantially similar taxes that are imposed after the date
of signature of the Agreement in addition to, or in place of,
the existing taxes. The competent authorities of the
territories shall notify each other of any significant
changes that have been made in their respective taxation laws.

Article 3 GENERAL DEFINITIONS
1. For the purposes of this Agreement, unless the context
otherwise requires:
a) the term "territory" means the territory referred to in
paragraph 3 (a) or 3 (b) of Article 2, as the case may be.
The terms "other territory" and "territories" shall be
construed accordingly;
b) 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 territories;
c) the term "company" means any body corporate or any entity
that is treated as a body corporate for tax purposes;
d) the term "enterprise" applies to the carrying on of any
business;
e) the terms "enterprise of a territory" and "enterprise of
the other territory" mean respectively an enterprise
carried on by a resident of a territory and an enterprise
carried on by a resident of the other territory;
f) the term "international traffic" means any transport by a
ship or aircraft operated by an enterprise of a territory,
except when the ship or aircraft is operated solely between
places in the other territory;
g) the term "competent authority" means:
(i) in the case of the territory in which the taxation law
administered by the Ministry of Finance in Taipei is
applied, the Finance Minister or his authorized
representative;
(ii) in the case of the territory in which the taxation law
administered by the Ministry of Finance of India is
applied, the Finance Minister of India or his authorized
representative;
h) the term "tax" means the tax referred to in paragraph 3 (a)
and 3 (b) of Article 2 as the case may be, but shall not
include any amount which is payable in respect of any
default or omission in relation to the taxes to which this
Agreement applies or which represents a penalty or fine
imposed relating to those taxes;
i) the term "fiscal year" means:
(i) In the territory referred to in paragraph 3 (a) of
Article 2: the financial year beginning on the first day
of January;
(ii) In the territory referred to in paragraph 3 (b) of
Article 2: the financial year beginning on the first day
of April.
2. As regards the application of the Agreement at any time by a
territory, any term not defined therein shall, unless the
context otherwise requires, have the meaning that it has at
that time under the law of that territory for the purposes of
the taxes to which the Agreement applies, any meaning under
the applicable tax laws of that territory prevailing over a
meaning given to the term under other laws of that territory.

Article 4 RESIDENT
1. For the purposes of this Agreement, the term "resident of a
territory " means any person who, under the laws of that
territory, is liable to tax therein by reason of his
domicile, residence, place of incorporation, place of
management or any other criterion of a similar nature, and
also includes that territory and any subdivision or local
authority thereof.
2. A person is not a resident of a territory for the purposes of
this Agreement if that person is liable to tax in that
territory in respect only of income from sources in that
territory, provided that this paragraph shall not apply to
individuals who are residents of the territory referred to in
paragraph 3 (a) of Article 2, as long as resident individuals
are taxed only in respect of income from sources in that
territory.
3. Where by reason of the provisions of paragraph 1 an
individual is a resident of both territories, then his status
shall be determined as follows:
a) he shall be deemed to be a resident only of the territory
in which he has a permanent home available to him; if he
has a permanent home available to him in both territories,
he shall be deemed to be a resident only of the territory
with which his personal and economic relations are closer
(centre of vital interests);
b) if the territory in which he has his centre of vital
interests cannot be determined, or if he has not a
permanent home available to him in either territory, he
shall be deemed to be a resident only of the territory in
which he has an habitual abode;
c) if he has a habitual abode in both territories or in
neither of them, the competent authorities of the
territories shall settle the question by mutual agreement.
4. Where by reason of the provisions of paragraph 1 a person
other than an individual is a resident of both territories,
then it shall be deemed to be a resident only of the
territory in which its place of effective management is
situated. If the territory in which its place of effective
management is situated cannot be determined, then the
competent authorities of the territories shall settle the
question by mutual agreement.

Article 5 PERMANENT ESTABLISHMENT
1. For the purposes of this Agreement, the term "permanent
establishment" means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
2. The term "permanent establishment" includes especially:
a) a place of management;
b) a branch;
c) an office;
d) a factory;
e) a workshop;
f) a sales outlet;
g) a warehouse in relation to a person providing storage
facilities for others;
h) a farm, plantation or other place where agricultural,
forestry, plantation or related activities are carried on;
and
i) a mine, an oil or gas well, a quarry or any other place of
extraction of natural resources.
3.
a) A building site or construction, installation or assembly
project or supervisory activities in connection therewith
constitutes a permanent establishment only if such site,
project or activities last more than 270 days.
b) The furnishing of services, including consultancy services,
by an enterprise through employees or other personnel
engaged by the enterprise for such purpose, but only where
activities of that nature continue (for the same or
connected project) within the territory for a period or
periods aggregating more than 182 days within any 12-month
period constitutes a permanent establishment.
4. Notwithstanding the preceding provisions of this Article, the
term "permanent establishment" shall be deemed not to include:
a) the use of facilities solely for the purpose of storage,
display or delivery 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, display or delivery;
c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of collecting
information, for the enterprise;
e) the maintenance of a fixed place of business solely for the
purpose of carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;
f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in subparagraphs a) to
e), provided that the overall activity of the fixed place
of business resulting from this combination is of a
preparatory or auxiliary character.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a
person - other than an agent of an independent status to whom
paragraph 7 applies - is acting in a territory on behalf of
an enterprise of the other territory, that enterprise shall
be deemed to have a permanent establishment in the
first-mentioned territory in respect of any activities which
that person undertakes for the enterprise, if such a person:
a) has and habitually exercises in that territory an authority
to conclude contracts in the name of the enterprise, unless
the activities of such person are limited to those
mentioned in paragraph 4 which, if exercised through a
fixed place of business, would not make this fixed place of
business a permanent establishment under the provisions of
that paragraph; or
b) habitually secures orders in the first-mentioned territory,
wholly or almost wholly for the enterprise itself.
6. Notwithstanding the preceding provisions of this Article, an
insurance enterprise of a territory shall, except in regard
to re-insurance, be deemed to have a permanent establishment
in the other territory if it collects premiums in that other
territory or insures risks situated therein through a person
other than an agent of an independent status to whom
paragraph 7 applies.
7. An enterprise shall not be deemed to have a permanent
establishment in a territory merely because it carries on
business in that territory through a broker, general
commission agent or any other agent of an independent status,
provided that such persons are acting in the ordinary course
of their business. However, when the activities of such an
agent are devoted wholly or almost wholly on behalf of that
enterprise, he will not be considered an agent of an
independent status within the meaning of this paragraph.
8. The fact that a company which is a resident of a territory
controls or is controlled by a company which is a resident of
the other territory, or which carries on business in that
other territory (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a
permanent establishment of the other.

Article 6 INCOME FROM IMMOVABLE PROPERTY
1. Income derived by a resident of a territory from immovable
property situated in the other territory may be taxed in that
other territory.
2. The term "immovable property" shall have the meaning which it
has under the law of the territory in which the property in
question 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, sources and other natural
resources; ships, boats 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 immovable property used for the performance of
independent personal services.

Article 7 BUSINESS PROFITS
1. The profits of an enterprise of a territory shall be taxable
only in that territory unless the enterprise carries on
business in the other territory through a permanent
establishment situated therein. If the enterprise carries on
business as aforesaid, the profits of the enterprise may be
taxed in the other territory but only so much of them as is
attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3, where an enterprise
of a territory carries on business in the other territory
through a permanent establishment situated therein, there
shall in each territory be attributed to that permanent
establishment the profits which it might be expected to make
if it were a distinct and separate enterprise engaged in the
same or similar activities under the same or similar
conditions and dealing wholly independently with the
enterprise of which it is a permanent establishment.
3. In determining the 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 territory in which the permanent
establishment is situated or elsewhere, in accordance with
the provisions of and subject to the limitations of the tax
laws of that territory. However, no such deduction shall be
allowed in respect of amounts, if any, paid (otherwise than
towards reimbursement of actual expenses) by the permanent
establishment to the head office of the enterprise or any of
its other offices, by way of royalties, fees or other similar
payments in return for the use of patents, or other rights,
or by way of commission or other charges for specific
services performed or for management, or, except in the case
of banking enterprises, by way of interest on moneys lent to
the permanent establishment. Likewise, no account shall be
taken, in the determination of the profits of a permanent
establishment, for amounts charged (otherwise than towards
reimbursement of actual expenses), by the permanent
establishment to the head office of the enterprise or any of
its other offices, by way of royalties, fees or other similar
payments in return for the use of patents or other rights, or
by way of commission or other charges for specific services
performed or for management, or, except in the case of a
banking enterprise, by way of interest on moneys lent to the
head office of the enterprise or any of its other offices.
4. Insofar as it has been customary in a territory to determine
the profits to be attributed to a permanent establishment on
the basis of an apportionment of the total profits of the
enterprise to its various parts, nothing in paragraph 2 shall
preclude that territory from determining the profits to be
taxed by such an apportionment as may be customary; the
method of apportionment adopted shall, however, be such that
the result shall be in accordance with the principles
contained in this Article.
5. No 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.
6. For the purposes of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be
determined by the same method year by year unless there is
good and sufficient reason to the contrary.
7. Where 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 SHIPPING AND AIR TRANSPORT
1. Profits derived by an enterprise of a territory from the
operation of ships or aircraft in international traffic shall
be taxable only in that territory.
2. For the purpose of this Article, profits derived by a
transportation enterprise from the operation of ships or
aircraft in international traffic include：
a) profits derived from the rental on a full (time or voyage)
basis of ships or aircraft; and
b) profits from the use, maintenance or rental of containers
(including trailers and other equipment for the transport
of containers) used for the transport of goods or
merchandise, unless the containers are used solely within
the other territory;
where such rental or such use, maintenance or rental, as the
case may be, is incidental to the operation of ships or
aircrafts in international traffic.
3. For the purposes of this Article interest on investments
directly connected with the operation of ships or aircraft in
international traffic shall be regarded as profits derived
from the operation of such ships or aircraft if they are
integral to the carrying on of such business, and the
provisions of Article 11 shall not apply in relation to such
interest.
4. The provisions of paragraph 1 shall also apply to profits
from the participation in a pool, a joint business or an
international operating agency.

Article 9 ASSOCIATED ENTERPRISES
1. Where
a) an enterprise of a territory participates directly or
indirectly in the management, control or capital of an
enterprise of the other territory, or
b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a
territory and an enterprise of the other territory,
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 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 profits of that enterprise and taxed
accordingly.
2. Where a territory includes in the profits of an enterprise of
the territory - and taxes accordingly - profits on which an
enterprise of the other territory has been charged to tax in
that other territory and the profits so included are profits
which would have accrued to the enterprise of the first
mentioned territory if the conditions made between the two
enterprises had been those which would have been made between
independent enterprises, then that other territory shall make
an appropriate adjustment to the amount of the tax charged
therein on those profits. In determining such adjustment, due
regard shall be had to the other provisions of this Agreement
and the competent authorities of the territories shall if
necessary consult each other.

Article 10 DIVIDENDS
1. Dividends paid by a company which is a resident of a
territory to a resident of the other territory may be taxed
in that other territory.
2. However, such dividends may also be taxed in the territory of
which the company paying the dividends is a resident and
according to the laws of that territory, but if the
beneficial owner of the dividends is a resident of the other
territory, the tax so charged shall not exceed 12.5 per cent
of the gross amount of the dividends.
This paragraph shall not affect the taxation of the company
in respect of the profits out of which the dividends are paid.
3. The term "dividends" as used in this Article means income
from shares or other rights, not being debt claims,
participating in profits, as well as income from other
corporate rights which is subjected to the same taxation
treatment as income from shares by the laws of the territory
of which the company making the distribution is a resident.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the dividends, being a resident of a
territory, carries on business in the other territory of
which the company paying the dividends is a resident, through
a permanent establishment situated therein, or performs in
that other territory independent personal services from a
fixed base situated therein, and the holding in respect of
which the dividends are paid is effectively connected with
such permanent establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case may be,
shall apply.
5. Where a company which is a resident of a territory derives
profits or income from the other territory, that other
territory may not impose any tax on the dividends paid by the
company, except insofar as such dividends are paid to a
resident of that other territory or insofar as the holding
in respect of which the dividends are paid is effectively
connected with a permanent establishment or a fixed base
situated in that other territory, nor subject the company's
undistributed profits to a tax on the company's undistributed
profits, even if the dividends paid or the undistributed
profits consist wholly or partly of profits or income arising
in such other territory.

Article 11 INTEREST
1. Interest arising in a territory and paid to a resident of the
other territory may be taxed in that other territory.
2. However, such interest may also be taxed in the territory in
which it arises, and according to the laws of that territory,
but if the beneficial owner of the interest is a resident of
the other territory, the tax so charged shall not exceed 10
per cent of the gross amount of the interest.
3. Notwithstanding the provisions of paragraph 2, interest
arising in a territory shall be exempt from tax in that
territory, provided that it is derived and beneficially owned
by:
a) the authority administering a territory, a subdivision or a
local authority of the other territory; or
b) Central Banks and Export-Import Banks of the territories
referred to in paragraph 3 (a) and 3 (b) of Article 2; or
c) any other institution as may be identified and accepted
from time to time by the competent authorities of both of
the territories referred to in paragraph 3 (a) and 3 (b) of
Article 2.
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 or
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
beneficial owner of the interest, being a resident of a
territory, carries on business in the other territory in
which the interest arises, through a permanent establishment
situated therein, or performs in that other territory
independent personal services from a fixed base situated
therein, and the debt-claims in respect of which the interest
is paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of
Article 7 or Article 14, as the case may be, shall apply.
6. Interest shall be deemed to arise in a territory when the
payer is a resident of that territory. Where, however, the
person paying the interest, whether he is a resident of a
territory or not, has in a territory a permanent
establishment or a fixed base in connection with which the
indebtedness on which the interest is paid was incurred, and
such interest is borne by such permanent establishment or
fixed base, then such interest shall be deemed to arise in
the territory in which the permanent establishment or fixed
base is situated.
7. Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the interest, 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 such case, the excess part of the payments shall remain
taxable according to the laws of each territory, due regard
being had to the other provisions of this Agreement.

Article 12 ROYALTIES AND FEES FOR TECHNICAL SERVICES
1. Royalties or fees for technical services arising in a
territory and paid to a resident of the other territory may
be taxed in that other territory.
2. However, such royalties or fees for technical services may
also be taxed in the territory in which they arise, and
according to the laws of that territory, but if the
beneficial owner of the royalties or fees for technical
services is a resident of the other territory, the tax so
charged shall not exceed 10 per cent of the gross amount of
the royalties or fees for technical services.
3.
a) The term "royalties" as used in this Article means payments
of any kind received as a consideration for the use of, or
the right to use, any copyright of literary, artistic or
scientific work including cinematograph films or films or
tapes used for television or radio broadcasting, any patent,
trade mark, design or model, plan, secret formula or
process, or for the use of, or the right to use, industrial,
commercial or scientific equipment, or for information
concerning industrial, commercial or scientific experience.
b) The term "fees for technical services" as used in this
Article means payments of any kind, other than those
mentioned in Articles 14 and 15 of this Agreement as
consideration for managerial or technical or consultancy
services, including the provision of services of technical
or other personnel.
4. The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the royalties or fees for technical
services, being a resident of a territory, carries on
business in the other territory in which the royalties or
fees for technical services arise, through a permanent
establishment situated therein, or performs in that other
territory independent personal services from a fixed base
situated therein, and the right or property in respect of
which the royalties or fees for technical services are paid
is effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or
Article 14, as the case may be, shall apply.
5.
a) Royalties or fees for technical services shall be deemed to
arise in a territory when the payer is a resident of that
territory. Where, however, the person paying the royalties
or fees for technical services, whether he is a resident of
a territory or not, has in a territory a permanent
establishment or a fixed base in connection with which the
liability to pay the royalties or fees for technical
services was incurred, and such royalties or fees for
technical services are borne by such permanent
establishment or fixed base, then such royalties or fees
for technical services shall be deemed to arise in the
territory in which the permanent establishment or fixed
base is situated.
b) Where under subparagraph (a) royalties or fees for
technical services do not arise in one of the territories,
and the royalties relate to the use of, or the right to
use, the right or property, or the fees for technical
services relate to services performed, in one of the
territories, the royalties or fees for technical services
shall be deemed to arise in that territory.
6. Where, by reason of a special relationship between the payer
and the beneficial owner or between both of them and some
other person, the amount of the royalties or fees for
technical services, having regard to the use, right or
information for which they are 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 such case, the excess part of the payments shall remain
taxable according to the laws of each territory, due regard
being had to the other provisions of this Agreement.

Article 13 CAPITAL GAINS
1. Gains derived by a resident of a territory from the
alienation of immovable property referred to in Article 6 and
situated in the other territory may be taxed in that other
territory.
2. Gains from the alienation of movable property forming part of
the business property of a permanent establishment which an
enterprise of a territory has in the other territory or of
movable property pertaining to a fixed base available to a
resident of a territory in the other territory for the
purpose of performing independent personal services,
including such gains from the alienation of such a permanent
establishment (alone or with the whole enterprise) or of such
fixed base, may be taxed in that other territory.
3. Gains from the alienation of ships or aircraft operated in
international traffic, or movable property pertaining to the
operation of such ships or aircraft shall be taxable only in
the territory of which the alienator is a resident.
4. Gains derived by a resident of a territory from the
alienation of shares deriving more than 50 per cent of their
value directly or indirectly from immovable property situated
in the other territory may be taxed in that other territory.
5. Gains from the alienation of shares other than those
mentioned in paragraph 4 in a company which is a resident of
a territory may be taxed in that territory.
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 territory of which the alienator is a resident.

Article 14 INDEPENDENT PERSONAL SERVICES
1. Income derived by an individual who is a resident of a
territory from the performance of professional services or
other activities of an independent character shall be taxable
only in that territory except in the following circumstances,
when such income may also be taxed in the other territory:
a) if he has a fixed base regularly available to him in the
other territory for the purpose of performing his
activities; in that case, only so much of the income as is
attributable to that fixed base may be taxed in that other
territory; or
b) if his stay in the other territory is for a period or
periods amounting to or exceeding in the aggregate 183 days
in any twelve-month period commencing or ending in the
fiscal year concerned; in that case, only so much of the
income as is derived from his activities performed in that
other territory may be taxed in that other territory.
2. The term "professional services" includes especially
independent scientific, literary, artistic, educational or
teaching activities as well as the independent activities of
physicians, lawyers, engineers, architects, surgeons,
dentists and accountants.

Article 15 DEPENDENT PERSONAL SERVICES
1. Subject to the provisions of Articles 16, 18, 19, 20 and 21,
salaries, wages and other similar remuneration derived by a
resident of a territory in respect of an employment shall be
taxable only in that territory unless the employment is
exercised in the other territory. If the employment is so
exercised, such remuneration as is derived therefrom may be
taxed in that other territory.
2. Notwithstanding the provisions of paragraph 1, remuneration
derived by a resident of a territory in respect of an
employment exercised in the other territory shall be taxable
only in the first mentioned territory if:
a) the recipient is present in the other territory for a
period or periods not exceeding in the aggregate 183 days
in any twelve-month period commencing or ending in the
fiscal year concerned, and
b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other territory, and
c) the remuneration is not borne by a permanent establishment
or a fixed base which the employer has in the other
territory.
3. Notwithstanding the preceding provisions of this Article,
remuneration derived in respect of an employment exercised
aboard a ship or aircraft operated in international traffic,
by an enterprise of a territory may be taxed in that
territory.

Article 16 DIRECTORS' FEES
Directors' fees and other similar payments derived by a resident
of a territory in his capacity as a member of the board of
directors of a company which is a resident of the other
territory may be taxed in that other territory.

Article 17 ARTISTES AND SPORTSPERSONS
1. Notwithstanding the provisions of Articles 14 and 15, income
derived by a resident of a territory as an entertainer, such
as a theatre, motion picture, radio or television artiste, or
a musician, or as a sportsperson, from his personal
activities as such exercised in the other territory, may be
taxed in that other territory.
2. Where income in respect of personal activities exercised by
an entertainer or a sportsperson in his capacity as such
accrues not to the entertainer or sportsperson himself but to
another person, that income may, notwithstanding the
provisions of Articles 7, 14 and 15, be taxed in the
territory in which the activities of the entertainer or
sportsperson are exercised.
3. The provisions of paragraphs 1 and 2, shall not apply to
income from activities performed in a territory by
entertainers or sportspersons if the activities are
substantially supported by public funds of one or both of the
territories or of subdivisions or local authorities thereof.
In such a case, the income shall be taxable only in the
territory of which the entertainer or sportsperson is a
resident.

Article 18 PENSIONS
Subject to the provisions of paragraph 2 of Article 19, pensions
and other similar remuneration paid to a resident of a territory
in consideration of past employment shall be taxable only in
that territory.

Article 19 GOVERNMENT SERVICE
1.
a) Salaries, wages and other similar remuneration, other than
a pension, paid by a territory or a subdivision or a local
authority thereof to an individual in respect of services
rendered to that territory or subdivision or authority
shall be taxable only in that territory.
b) However, such salaries, wages and other similar
remuneration shall be taxable only in the other territory
if the services are rendered in that territory and the
individual is a resident of that territory who:
(i) is a national of that territory; or
(ii) did not become a resident of that territory solely for
the purpose of rendering the services.
2.
a) Any pension paid by, or out of funds created by, a
territory or a subdivision or a local authority thereof to
an individual in respect of services rendered to that
territory or subdivision or authority shall be taxable only
in that territory.
b) However, such pension shall be taxable only in the other
territory if the individual is a resident of, and a
national of, that other territory.
3. The provisions of Articles 15, 16, 17 and 18 shall apply to
salaries, wages and other similar remuneration and to
pensions in respect of services rendered in connection with a
business carried on by a territory or a subdivision or a
local authority thereof.

Article 20 PROFESSORS, TEACHERS AND RESEARCH SCHOLARS
1. A professor, teacher or research scholar who is or was a
resident of the territory immediately before visiting the
other territory for the purpose of teaching or engaging in
research, or both, at a university, college or other similar
approved institution in that other territory shall be exempt
from tax in that other territory on any remuneration for such
teaching or research for a period not exceeding two years
from the date of his arrival in that other territory.
2. This Article shall apply to income from research only if such
research is undertaken by the individual in the public
interest and not primarily for the private benefit of a
person or persons.
3. For the purposes of this Article, an individual shall be
deemed to be a resident of a territory if he is resident in
that territory in the fiscal year in which he visits the
other territory or in the immediately preceding fiscal year.

Article 21 STUDENTS
1. A student who is or was a resident of one of the territories
immediately before visiting the other territory and who is
present in that other territory solely for the purpose of his
education or training, shall besides grants, loans and
scholarships be exempt from tax in that other territory on:
a) payments made to him by persons residing outside that other
territory for the purposes of his maintenance, education or
training; and
b) remuneration which he derives from an employment which he
exercises in the other territory if the employment is
directly related to his studies.
2. The benefits of this Article shall extend only for such
period of time as may be reasonable or customarily required
to complete the education or training undertaken, but in no
event shall any individual have the benefits of this Article,
for more than six consecutive years from the date of his
first arrival in that other territory.

Article 22 OTHER INCOME
1. Items of income of a resident of a territory, wherever
arising, not dealt with in the foregoing Articles of this
Agreement shall be taxable only in that territory.
2. The provisions of paragraph 1 shall not apply to income,
other than income from immovable property as defined in
paragraph 2 of Article 6, if the recipient of such income,
being a resident of a territory, carries on business in the
other territory through a permanent establishment situated
therein, or performs in that other territory independent
personal services from a fixed base situated therein, and the
right or property in respect of which the income is paid is
effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or
Article 14, as the case may be, shall apply.
3. Notwithstanding the provisions of paragraph 1, if a resident
of a territory derives income from sources within the other
territory in form of lotteries, crossword puzzles, races
including horse races, card games and other games of any sort
or gambling or betting of any nature whatsoever, such income
may be taxed in the other territory.

Article 23 METHODS FOR ELIMINATION OF DOUBLE TAXATION
Double taxation shall be eliminated as follows:
1. In the territory referred to in paragraph 3 (a) of Article 2:
a) Where a resident of the territory referred to in paragraph
3 (a) of Article 2 derives income from the other territory,
the amount of tax on that income paid in that other
territory (but excluding, in the case of a dividend, tax
paid in respect of the profits out of which the dividend is
paid) and in accordance with the provisions of this
Agreement, shall be credited against the tax levied in the
first-mentioned territory on that resident.
The amount of credit, however, shall not exceed the amount
of the tax in the first-mentioned territory on that income
computed in accordance with its taxation laws and
regulations.
b) Where in accordance with any provision of the Agreement
income derived by a resident of the territory referred to
in paragraph 3 (a) of Article 2 is exempt from tax in the
territory referred to in paragraph 3 (a) of Article 2, the
territory referred to in paragraph 3 (a) of Article 2 may
nevertheless, in calculating the amount of tax on the
remaining income of such resident, take into account the
exempted income.
2. In the territory referred to in paragraph 3 (b) of Article 2:
a) Where a resident of the territory referred to in paragraph
3 (b) of Article 2 derives income which, in accordance with
the provisions of this Agreement, may be taxed in the
territory referred to in paragraph 3 (a) of Article 2, the
territory referred to in paragraph 3 (b) of Article 2 shall
allow as a deduction from the tax on the income of that
resident, an amount equal to the tax paid in the territory
referred to in paragraph 3 (a) of Article 2.
Such deduction shall not, however, exceed that part of the
tax as computed before the deduction is given, which is
attributable, as the case may be, to the income which may
be taxed in the territory referred to in paragraph 3 (a) of
Article 2.
b) Where in accordance with any provision of the Agreement
income derived by a resident of the territory referred to
in paragraph 3 (b) of Article 2 is exempt from tax in the
territory referred to in paragraph 3 (b) of Article 2, the
territory referred to in paragraph 3 (b) of Article 2 may
nevertheless, in calculating the amount of tax on the
remaining income of such resident, take into account the
exempted income.

Article 24 NON DISCRIMINATION
1. Nationals of a territory shall not be subjected in the other
territory to any taxation or any requirement connected
therewith, which is other or more burdensome than the
taxation and connected requirements to which nationals of
that other territory in the same circumstances, in particular
with respect to residence, are or may be subjected. This
provision shall, notwithstanding the provisions of Article 1,
also apply to persons who are not residents of one or both of
the territories.
2. The taxation on a permanent establishment which an enterprise
of a territory has in the other territory shall not be less
favorably levied in that other territory than the taxation
levied on enterprises of that other territory carrying on the
same activities. This provision shall not be construed as
obliging a territory to grant to residents of the other
territory any personal allowances, reliefs and reductions for
taxation purposes on account of civil status or family
responsibilities which it grants to its own residents. This
provision shall not be construed as preventing a territory
from charging the profits of a permanent establishment which
a company of the other territory has in the first-mentioned
territory at a rate of tax which is higher than that imposed
on the profits of a similar company of the first mentioned
territory, nor as being in conflict with the provisions of
paragraph 3 of Article 7.
3. Except where the provisions of paragraph 1 of Article 9,
paragraph 7 of Article 11, or paragraph 6 of Article 12,
apply, interest, royalties and other disbursements paid by an
enterprise of a territory to a resident of the other
territory shall, for the purpose of determining the taxable
profits of such enterprise, be deductible under the same
conditions as if they had been paid to a resident of the
first mentioned territory.
4. Enterprises of a territory, the capital of which is wholly or
partly owned or controlled, directly or indirectly, by one or
more residents of the other territory, shall not be subjected
in the first mentioned territory 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 the first mentioned
territory are or may be subjected.
5. The provisions of this Article shall apply to taxes which are
covered by this Agreement.

Article 25 MUTUAL AGREEMENT PROCEDURE
1. Where a person considers that the actions of one or both of
the territories result or will result for him in taxation not
in accordance with the provisions of this Agreement, he may,
irrespective of the remedies provided by the domestic law of
those territories, present his case to the competent
authority of the territory of which he is a resident or, if
his case comes under paragraph 1 of Article 24, to that of
the territory of which he is a national. The case must be
presented within three years from the first notification of
the action resulting in taxation not in accordance with the
provisions of 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 a satisfactory solution, to resolve the case by
mutual agreement with the competent authority of the other
territory, with a view to the avoidance of taxation which is
not in accordance with the Agreement. Any agreement reached
shall be implemented notwithstanding any time limits in the
domestic law of the territories.
3. The competent authorities of the territories 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 cases not provided for in the Agreement.
4. The competent authorities of the territories may communicate
with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs. When it
seems advisable in order to reach an agreement to have an
oral exchange of opinions, such exchange may take place
through a commission consisting of representatives of the
competent authorities of the territories.

Article 26 EXCHANGE OF INFORMATION
1. The competent authorities of the territories shall exchange
such information (including documents or certified copies of
the documents) as is foreseeably relevant for carrying out
the provisions of this Agreement or to the administration or
enforcement of the domestic laws concerning taxes of every
kind and description imposed on behalf of the territories, or
of their subdivisions or local authorities, insofar as the
taxation thereunder is not contrary to the Agreement. The
exchange of information is not restricted by Articles 1 and 2.
2. Any information received under paragraph 1 by a territory
shall be treated as secret in the same manner as information
obtained under the domestic laws of that territory and shall
be disclosed only to persons or authorities (including courts
and administrative bodies) concerned with the assessment or
collection of, the enforcement or prosecution in respect of,
the determination of appeals in relation to the taxes
referred to in paragraph 1, or the oversight of the above.
Such persons or authorities shall use the information only
for such purposes. They may disclose the information in
public court proceedings or in judicial decisions.
Notwithstanding the foregoing, information received by a
Contracting territory may be used for other purposes when
such information may be used for such other purposes under
the laws of both territories and the competent authority of
the supplying territories authorises such use.
3. In no case shall the provisions of paragraphs 1 and 2 be
construed so as to impose on a territory the obligation:
a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
territory;
b) to supply information (including documents or certified
copies of the documents) which is not obtainable under the
laws or in the normal course of the administration of that
or of the other territory;
c) to supply information which would disclose any trade,
business, industrial, commercial or professional secret or
trade process, or information the disclosure of which would
be contrary to public policy (ordre public).
4. If information is requested by a territory in accordance with
this Article, the other territory shall use its information
gathering measures to obtain the requested information, even
though that other territory may not need such information for
its own tax purposes. The obligation contained in the
preceding sentence is subject to the limitations of paragraph
3 but in no case shall such limitations be construed to
permit a territory to decline to supply information solely
because it has no domestic interest in such information.
5. In no case shall the provisions of paragraph 3 be construed
to permit a territory to decline to supply information solely
because the information is held by a bank, other financial
institution, nominee or person acting in an agency or a
fiduciary capacity or because it relates to ownership
interests in a person.

Article 27 ASSISTANCE IN THE COLLECTION OF TAXES
1. Each of the territories shall endeavor to collect, as if it
were its own tax, any tax referred to in Article 2, which has
been imposed by the other territory and the collection of
which is necessary to ensure that any exemption or reduction
of tax granted under this Agreement by that other territory
shall not be enjoyed by persons not entitled to such benefits.
2. In no case shall the provisions of this Article be construed
so as to impose on a territory the obligation:
a) to carry out administrative measures at variance with the
laws and administrative practice of that or of the other
territory;
b) to carry out measures which would be contrary to public
policy (ordre public);
c) to provide assistance if the other territory has not
pursued all reasonable measures of collection or
conservancy, as the case may be, available under its laws
or administrative practice;
d) to provide assistance in those cases where the
administrative burden for that territory is clearly
disproportionate to the benefit to be derived by the other
territory.

Article 28 LIMITATION OF BENEFITS
1. Notwithstanding the provisions of any other Article of this
Agreement, a resident of a territory shall not be entitled to
the benefits of this Agreement if the primary purpose or one
of the primary purposes of such resident or a person
connected with such resident was to obtain the benefits of
this Agreement.
2. The cases of legal entities not having bona fide business
activities shall be covered by the provisions of this
Article.

Article 29 ENTRY INTO FORCE
1. Taipei Economic and Cultural Center in New Delhi and
India-Taipei Association in Taipei shall notify each other in
writing, about the completion of the procedures required by
the laws in their respective territories for the entry into
force of this Agreement.
2. This Agreement shall enter into force on the date of the
later of these written notifications referred to in paragraph
1 of this Article.
3. The provisions of this Agreement shall have effect:
a) In the territory referred to in paragraph 3 (a) of Article
2, in relation to income derived in any year of income
beginning on or after the first day of January in the
calendar year next following that in which the Agreement
enters into force; and
b) In the territory referred to in paragraph 3 (b) of Article
2, in respect of income derived 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.

Article 30 TERMINATION
This Agreement shall remain in force indefinitely until
terminated by either the Taipei Economic and Cultural Center in
New Delhi or the India-Taipei Association in Taipei by giving a
written notice of termination to the other 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:
a) In the territory referred to in paragraph 3 (a) of Article
2, in relation to income derived in any year of income
beginning on or after the first day of January in the
calendar year next following that in which the notice of
termination is given;
b) In the territory referred to in paragraph 3 (b) of Article
2, in respect of income derived in any fiscal year on or
after the first day of April next following the calendar
year in which the notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorized
thereto, have signed this Agreement.

DONE in duplicate at New Delhi this 12th day of July, 2011, each
in the Chinese, Hindi and English languages, all texts being
equally authentic. In case of divergence of interpretation, the
English text shall prevail.


FOR TAIPEI ECONOMIC AND FOR INDIA-TAIPEI ASSOCIATION
CULTURAL CENTER IN TAIPEI
IN NEW DELHI


（Wenchyi Ong） （Pradeep Kumar Rawat）
Representative Director General





PROTOCOL
Taipei Economic and Cultural Center in New Delhi and
India-Taipei Association in Taipei on signing at New Delhi on
the 12th day of July, 2011, the Agreement for the Avoidance of
Double Taxation and the Prevention of Fiscal Evasion with
respect to Taxes on Income, have agreed upon the following
provisions which shall be an integral part of the Agreement:
1. It is understood that if the domestic law of a territory is
more beneficial to a resident of the other territory than the
provisions of this Agreement, then the provisions of the
domestic law of the first-mentioned territory shall apply to
the extent they are more beneficial to such a resident.
2. With respect to Article 2, in the territory referred to in
paragraph 3 (a) of Article 2, it is understood that nothing
in the Agreement will affect the imposition of the Land Value
Increment Tax under Land Tax Act.
3. In respect of subparagraphs (a) and (b) of paragraph 4 of
Article 5 on ‘Permanent Establishment’, it is understood
that if the Agreement for the Avoidance of Double Taxation
and Prevention of Fiscal Evasion with respect to taxes on
income between the Republic of India and the People’s
Republic of China is revised and the revised Agreement
between the Republic of India and the People’s Republic of
China omits the words ‘or delivery’ from these two
subparagraphs, then, a corresponding revision of these two
subparagraphs shall be automatically effected in this
Agreement and the words ‘or delivery’ shall stand omitted
from these two subparagraphs, with effect from the date on
which the revised Agreement for the Avoidance of Double
Taxation and Prevention of Fiscal Evasion between the
Republic of India and the People’s Republic of China enters
into force.
4. It is further understood that in respect of paragraph 5 of
Article 5 on ‘Permanent Establishment’, if the Agreement
for the Avoidance of Double Taxation and Prevention of Fiscal
Evasion with respect to taxes on income between the Republic
of India and the People’s Republic of China is revised and
the revised Agreement between the Republic of India and the
People’s Republic of China includes provisions to the effect
that a person - other than an agent of an independent status
to whom paragraph 7 applies acting in a Contracting State on
behalf of an enterprise of the other Contracting State shall
constitute a permanent establishment in the first-mentioned
Contracting State in respect of activities he undertakes for
the enterprise, if he habitually maintains in the
first-mentioned state a stock of goods or merchandise from
which he regularly delivers goods or merchandise on behalf of
the enterprise, then a corresponding revision of paragraph 5
of Article 5 shall be automatically effected in this
Agreement by inserting similar provision with effect from the
date on which the revised Agreement between the Republic of
India and the People's Republic of China enters into force.
The exact formulation of the provisions to be inserted in
this Agreement shall be finalized by exchange of letters.
5. With respect to Article 23, it is understood that the laws in
force in either of the territories shall continue to govern
the taxation of income in the respective territories except
when express provision to the contrary is made in this
Agreement. When income is subject to tax in both territories,
relief from double taxation shall be given in accordance with
the provisions of Article 23.
6. With respect to Article 23, it is further understood that the
territory referred to in paragraph 3 (b) of Article 2 shall
not allow as a deduction from the tax on the income of its
resident, Land Value Increment Tax under Land Tax Act imposed
in the territory referred to in paragraph 3 (a) of Article 2.

In witness whereof, the undersigned, being duly authorized
thereto, have signed this Protocol.

DONE in duplicate at New Delhi this 12th day of July, 2011,
each, in the Chinese, Hindi and English languages, all texts
being equally authentic. In case of divergence of
interpretation, the English text shall prevail.


FOR TAIPEI ECONOMIC AND FOR INDIA-TAIPEI ASSOCIATION
CULTURAL CENTER IN TAIPEI
IN NEW DELHI


（Wenchyi Ong） （Pradeep Kumar Rawat）
Representative Director General