Afganisthan
Double Taxation
Avoidance Agreement
Agreement for
avoidance of Double Taxation of income of enterprises operating aircraft
between the Government of India and Government of Afghanistan
Notification
No.G.S.R. 514(E), dtd. 30.9.1975
Whereas
the Government of India and the Government of Afganistan have concluded an
Agreement through exchange of letters as set out in the Annexure hereto, for
the avoidance of double taxation of income of enterprises operating aircraft;
Now,
therefore, in exercise of the powers conferred by section 90 of the Income-tax
Act, 1961 (43 of 1961) and section 24A of the Companies (Profits) Surtax Act,
1964 (7 of 1964), the Central Government hereby directs that all the provisions
of the said Agreement shall be given effect to in the Union of India.
ANNEXURE
Ambassador
of India
Kabul,
September
14, 1975.
Excellency,
I
have, the honour to refer to the Agreement dated the 26th January, 1952 between
the Government of India and the Government of Afghanistan relating to air
services and to the discussions between the representatives of our two
Governments on the reciprocal exemption of the airlines of India and
Afghanistan from payment of income-tax and to confirm on behalf of the
Government of India the following understandings reached between our two
Governments:
1. Income derived from
the operation of aircraft by the airlines of India shall be exempt from the
Afghanistan tax.
2. Income derived from
the operation of aircraft by the airlines of Afghanistan shall be exempt from
the Indian tax.
3. The exemption
provided for in paragraphs (1) and (2) above shall also apply in respect of
participation in pools of any kind regarding air transport by the airlines of
India or Afghanistan; the exemption shall not, however, apply to income from
operation of aircraft in internal traffic in India or Afghanistan.
4. The exemption
provided for in paragraphs (1), (2) and (3) above shall have effect in relation
to the income derived from the operation of aircraft on or after the 26th day
of January, 1952, on which date the Agreement relating to air services was
signed between India and Afghanistan.
In
case any tax on income relatable to the aforesaid period has been recovered by
either Government as of the date of this Agreement, the same shall be refunded
by that Government on an application to be made in this behalf within twelve
months of the said date by the airlines of India or the airlines of Afghanistan
as the case may be.
1.
2.
3.
4.
5. It is understood
that:
a. The term "
Indian tax " means the income-tax and surtax imposed under the tax laws of
India.
b. The term "
Afghanistan tax " means the income tax and the business transactions tax
imposed by the Income Tax Law of Afghanistan.
c. The terms "
Indian tax " and " Afghanistan tax " shall also include any
identical or substantially similar taxes which are imposed hereafter by India
or Afghanistan respectively in addition to or in place of the existing taxes.
d. The term "
airlines of India " or " airlines of Afghanistan " means---
i.
airlines
designated by the Government of India or the Government of Afghanistan, as the
case may be, in pursuance of the Agreement dated 26th January, 1952 (as amended
or revised from time to time) between the two Govern ment relating to air
services; or
ii.
airlines
which are authorised by the Government of India or the Government of
Afghanistan, as the case may be, by a general or special arrangement of between
the two Governments to operate chartered flights between or beyond their
territories.
a.
b.
c.
d.
e. The term " internal
traffic " shall mean traffic which originates and terminates within India
or within Afghanistan, as the case may be.
f. The term "
operation of aircraft " means a business of transportation by air of
persons, livestock, goods or mail carried on by the owners or lessors or
charterers of aircraft, including the sale of tickets for such transportation
on behalf of other enterprises and any other activity directly connected with
such transportation.
I
have the honour also to propose that this letter and Your Excellency's letter
of reply confirming the foregoing understandings shall be regarded as
constituting an agreement between the two Governments for the avoidance of
double, taxation of income of enterprises operating aircraft which shall enter
into force on the date of Your Excellency's reply and shall remain in force
indefinitely, unless either of the Governments gives notice to the other
Government of its intention to terminate this Agreement on or before the
thirtieth day of June in any calendar year after the year 1980. In the event of
such a notice, this agreement shall cease to be effective:
a. in India in respect
of income assessable for the assessment year commencing on the 1st day of April
in the second calendar year following the calendar year in which the notice is
given and the subsequent assessment years; and
b. in Afghanistan in
respect of income assessable for the taxable year commencing on the 1st day of
Hamal corresponding to the 21st day of March, in the second calendar year
following the calendar year in which the notice, is given and the subsequent
taxable years.
I
avail myself of this opportunity to renew to Your Excellency the assurances of
my highest consideration.
(Sd.)
K. R. P. Singh,
Ambassador
of India in Afghanistan,
Kabul-Afghanistan.
H.E.
Mr. Sultan Mahmood Ghazi,
President,
Civil
Aviation and Tourism Authority.
Kabul-Afghanistan.
September
14, 1975.
President
Civil
Aviation And Tourism Authority
Excellency,
I
have the honour to acknowledge the receipt of Your Excellency's letter of
today's date which reads as follows:
"
I have the honour to refer to the Agreement date the 26th January, 1952 between
the Government of India and the Government of Afghanistan relating to air services
and to the discussions between the, representatives of our two Governments on
the reciprocal exemption of the airlines of India and Afghanistan from payment
of income-tax and to confirm on behalf of the Government of India the following
understandings reached between our two Governments:
1. Income denied from
the operation of aircraft by the airlines of India shall be exempt from the
Afghanistan tax.
2. Income derived from
the operation of aircraft by the airlines of Afghanistan shall be exempt from
the Indian tax.
3. The exemption
provided for in paragraphs (1) and (2) above shall also apply in respect of
participation in pools of any kind regarding air transport by the airlines of
India or Afghanistan; the exemption shall not, however, apply to income from
operation of aircraft in internal traffic in India or Afghanistan.
4. The exemption
provided for in paragraphs (1), (2) and (3) above shall have effect in relation
to the income derived from the operation of aircraft on or after the 26th day
of January, 1952, on which date the Agreement relating to air services was
signed between India and Afghanistan.
In case any tax on income relatable to the, aforesaid period has been recovered
by either Government as of the date of this Agreement, the same shall be refunded
by that Government on an application to be made in this behalf within twelve
months of the said date by the airlines of India or the airlines of Afghanistan
as the case may be.
1.
2.
3.
4.
5. It is understood
that:
a. The term "
Indian tax " means the income-tax and surtax imposed under the tax laws of
India.
b. The term "
Afghanistan tax " means the income-tax and the business transactions tax
imposed by the Income Tax Law of Afghanistan.
c. The terms "
Indian-tax " and " Afghanistan tax " shall also include any
identical or substantially similar taxes which are imposed hereafter by India
or Afghanistan respectively in addition to or in place of the existing taxes.
d. The term "
airlines of India " or " airlines of Afghanistan " means---
i.
Airlines
designated by the Government of India or the Government of Afghanistan, as the
case may be, in pursuance of the Agreement dated 26th January, 1952 (as amended
or revised from time to time) between the two Governments relating to air
services; or
ii.
airlines
which are autliorised by the Government of India or the Government of
Afghanistan, as the case may be, by a general or special arrangement between
the two Governments to operate chartered flights between or beyond their
territories.
a.
b.
c.
d.
e. The term "
internal traffic " shall mean traffic which originates and terminates
within India or within Afghanistan, as the case may be.
f. The term "
operation of aircraft " means a business of transportation by air of
persons, livestock, goods or mail, carried on by the owners or lessors or charterers
of aircraft, including the sale of tickets for such transportation on behalf of
other enterprises and any other activity directly connected with such
transportation.
"
I have the honour also to propose that this letter and Your Excellency's letter
of reply confirming the foregoing understandings shall be regarded as
constituting an agreement between the two Governments for the avoidance of
double taxation of income of enterprises operating aircraft, which shall enter
into force on the date of Your Excellency's reply and shall remain in force
indefinitely, unless either of the Governments gives notice to the other
Government of its intention to terminate this agreement on or before the
thirtieth day of June in any calendar year after the year 1980. In the event of
such a notice, this agreement shall cease to be effective.
a. in India, in respect
of income assessable for the assessment year commencing on the 1st day of April
in the second calendar year following the calendar year in which the notice is
given and the subsequent assessment years; and
b. in Afghanistan, in
respect of income assessable for the taxable year commencing on the 1st day of
Hamal corresponding to the 21st day of March in the second calendar year
following the calendar year in which the notice is given and the subsequent
taxable years."
I
have further the honour to confirm the foregoing understandings on behalf of
the Government of Afghanistan and to agree that Your Excellency's letter and my
reply thereto shall constitute an agreement between the two Governments as
stated in Your Excellency's above-mentioned letter.
I
avail myself of this opportunity to renew to Your Excellency the assurances of
my highest consideration.
(Sd.)
Sultan Mahmood Ghazi,
President,
Civil Aviation and Tourism Authority,
Kabul-Afghanistan.
H.E.
Mr. K. R. P. Singh,
Ambassador
of India in Afghanistan,
Kabul-Afghanistan
