Agreement Between The
Government Of The Republic Of India And The Government Of The State Of Kuwait
For The Avoidance Of Double Taxation Of Income Derived From International Air
F. No. 501/1/800-FTD dated 31-3-1983.
302(E). -Whereas the annexed Agreement between the Government of the Republic
of India and the Government of the State of Kuwait for the avoidance of double
taxation of Income derived from international air transport as come into force
on the notification by both the Contracting States to each other of completion
of the procedures required by their respective laws, as required by Article 5
of the said Agreement.
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) Sur-tax 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.
BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE STATE
OF KUWAIT FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM
INTERNATIONAL AIR TRANSPORT
Government of India and the Government of Kuwait desiring to conclude an
Agreement for the avoidance of double taxation of income derived from
international air transport.
agreed as follows:
1. The existing taxes to
which this Agreement shall apply are:
a. In the case of
income-tax imposed under the Income-Tax Decree No. 3 of 1955;
additional income-tax imposed under the Law No. 34 of 1970 (hereinafter
referred to is " Kuwait tax ").
b. In the case of India:
income-tax including any surcharge thereon imposed under the Income-tax Act, 1961
(43 of 1961):
surtax imposed under the companies (Profits) Surtax Act, 1964, (7 of 1964)
(hereinafter referred to as " Indian tax ").
2. This Agreement shall
also apply to any identical or substantially similar taxes which are imposed
after the date of signature of this Agreement in addition to, or in place of,
the taxes referred to in paragraph 1 of this Article.
1. In this Agreement,
unless the context otherwise requires:
a. the term "
Kuwait " means the territory of Kuwait and includes the territorial sea
and airspace above;
b. the term " India
" means the territory of India and includes the territorial sea and
airspace above it as well as any other maritime zone referred to in the
Territorial Waters, Continental Shelf, Exclusive Economic Zone and other
Maritime Zones Act, 1976 (Act No. 80 of 1976), in which India has certain
rights and to the extent that these rights can be exercised therein as if such
maritime zone is a part of the territory of India;
c. the term " a
Contracting State " and the " other Contracting State " mean
Kuwait or India, as the context requires;
d. the term " tax
" means " Kuwait tax " or " Indian tax " as the
e. the term "
enterprise of a Contracting State " means an airline which is authorised
by the Government of that State by a general or special arrangement between the
two Contracting States to operate scheduled or non-scheduled fights between or
beyond their territories;
f. the term "
international 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 expression "
operation of aircraft " means a business of carriage by air of persons,
livestock, baggage, cargo or mail and includes the sale of tickets and airway
bills for, and the provision of services connected with, such carriage either
for the enterprise itself or for any other enterprise engaged in such
2. In the application of
the provisions of this Agreement by one of the Contracting States, any term
used but not defined herein shall, unless the context otherwise requires, have
the meaning which it has under the laws in force in that State relating to the
taxes which are the subjects of this Agreement.
1. Profits derived by an
enterprise of a Contracting State from the operation of aircraft in
international traffic shall be exempt from tax in the other Contracting State.
2. The provisions of
paragraph 1 shall also apply to the share of profits from the operation of
aircraft in international traffic derive by an enterprise of a Contracting
State through participation in a pooled service, in a joint air transport
operation or in an international operating agency.
3. For the purpose of
paragraph 1, interest on funds directly connected with the operation of
aircraft in international traffic shall regarded as income from the operation
laws in force in either of the Contracting States will continue to govern the
assessment and taxation of income in the contracting States except where
express provisions to the contrary is made in this Agreement.
1. This Agreement shall
be approved in accordance with the laws in force in each of the Contracting
States. It shall enter into force thirty days after the exchange of letters
certifying that the proper procedure was fulfilled in each Contracting State.
The exchange of letters shall take place at New Delhi.
2. The provisions of
this Agreement shall have effect in respect of the earnings arising from
3. No action would be
taken to reopen assessments in respect of the period prior to 1-1-1967.
Agreement shall continue in effect indefinitely but either Contracting State
may, on or before the thirtieth day of June in any calendar year after the year
1986 give notice of termination to the other Contracting State and in such
event this Agreement shall cease to be effective:
a. In Kuwait, in respect
of any year of tax commencing on or after the 1st day of July of the second
calendar year following the year in which the notice is given;
b. In India, in respect
of any assessment year commencing on or after the 1st day of April of the
second calendar year following the year in which the notice is given.
witness whereof the undersigned, duly authorised thereto have signed the
in duplicate at Kuwait this twenty-first day of April, one thousand nine
hundred and eighty-two in the Hindi, Arabic, and English languages and in the
event of any doubt, the English text shall prevail.
the Government of India For the Government of Kuwait.
No. 501/1/80-FTD] R. R. KHOSLA, Jt. Secy.
FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED FROM INTERNATIONAL AIR
TRANSPORT BETWEEN THE REPUBLIC OF INDIA AND THE STATE OF KUWAIT: Corrigendum
No. G.S.R. 792(E), dtd. 11.10.1983
the notification of the Government of India in the Ministry of Finance
(Department of Revenue) No. G.S.R. 302(E), dtd. 31.03.1983, published at 124 of
the Gazette of India, extraordinary, Part II section 3, sub-section (i), dtd.
1. at page 3, in Article
paragraph 1, clause (c), line 2, for "he" read "the";
line 4 from the bottom, for '(c) the term "tax"', read '(d)the term
2. at page 4,-
a. in Article 3,-
paragraph 2, line 3, for "derive", read "derived";
paragraph 3, line 2, for "airraft", read "aircraft";
b. in Article 5,
paragraph 1, line 5, for "The exchange ", read "The