NOTIFICATION NO. 368/2006, DATED 15-12-2006
Whereas the Convention between the Government of the Republic of India and the Kingdom of Norway for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital came into force in the year 1986, being the year in which it was signed, after the notification by both the Contracting States to each other of the completion of the procedures required under their laws for bringing into force the said Convention;
AND WHEREAS the Central Government in exercise of the powers conferred by section 44A of the Wealth-tax Act, 1957 (27 of 1957), section 90 of the Income-tax Act, 1961 (43 of 1961), and section 24A of the Companies (Profits) Surtax Act, 1964 (7 of 1964), had directed that all the provisions of the said Convention annexed to the notification of the Government of India, Ministry of Finance (Department of Revenue) (Foreign Tax Division) number G.S.R.756 (E) dated the 9th September, 1987 shall be given effect to in the Union of India;
AND WHEREAS the aforesaid Convention, under paragraph 2 of Article 13 relating to Royalties and fees for technical services, provides that if after the entry into force of this Convention, under any Convention or Agreement between India and a third State, India should limit its taxation on royalties or fees for technical services to a rate lower than that provided for in the present agreement on the said items of income, then, the same rate as provided for in that Convention or Agreement on the said items of income shall also apply under this Convention;
AND WHEREAS the Conventions between India and Armenia, which came into force on the 9th September, 2004, India and Sudan which came into force on the 15th April, 2004 and Hungary which came into force on the 4th March, 2005, have limited the taxation at source on royalties and fees for technical services to a rate lower than that provided in the Convention between India and Norway on the said items of income;
NOW, THEREFORE, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendments to the notification of the Government of India, Ministry of Finance (Department of Revenue) (Foreign Tax Division) number G.S.R.756(E) dated the 9th September, 1987, with effect from the 1st April, 2006, in India and with effect from 1st January, 2006, in Norway, namely:-
In the said notification, in the Annexure, relating to the Convention between the Republic of India and the Kingdom of Norway for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, in Article 13, in paragraph 2 for the words and figures “not exceed 20 percent” the words and figures “not exceed 10 percent ” shall be substituted.
[F. No. 505/3A/81-FTD]
