Democratic Republic of Yemen
AGREEMENT BETWEEN THE
GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE PEOPLE'S
DEMOCRATIC REPUBLIC OF YEMEN FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME
DERIVED FROM INTERNATIONAL AIR TRANSPORT.
No. 8070 (F. No. 501/1/87-FTD) dated 12-8-1988]
No. 857(E).---Whereas the annexed Agreement between the Government of the
Republic of India and the Government of the People's Democratic Republic of
Yemen for the avoidance of double taxation of income derived from international
air transport has entered into force on 5-8-1988, the date of signature thereon
by the Contracting States, 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) 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.
GOVERNMENT OF THE REPUBLIC OF INDIA
THE GOVERNMENT OF THE PEOPLE'S DEMOCRATIC REPUBLIC OF YEMEN DESIRING TO
CONCLUDE AN AGREEMENT FOR THE AVOIDANCE OF DOUBLE TAXATION OF INCOME DERIVED
FROM INTERNATIONAL AIR TRANSPORT HAVE AGREED AS FOLLOWS
1. The existing taxes to
which this Agreement shall apply are:
a. in the case of
People's Democratic Republic of Yemen, the income-tax including surcharge
thereon (hereinafter referred to as "Yemeni Tax");
b. in the case of India:
income-tax including any surcharge there on;
referred to as "Indian Tax").
2. This Agreement shall
also apply to any identical or substantialy similar taxes which are imposed
after the date of signature of this Agreement in addition to or in place of the
taxes refered to in paragraph 1 of this Article. The competent authorities of
the Contracting States shall notify each other of any substantial changes which
are made in their respective taxation laws.
1. In this Agreement,
unless the context otherwise requires:
a. the terms 'a
Contracting State' and 'the other Contracting State' mean "People's
Democratic Republic of Yemen" or "India", as the context
b. the term 'tax' means
"Yemeni tax" or "Indian tax" as the context requires;
c. the term 'enterprise
of a Contracting State' means airlines designated by each Contracting State;
d. 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;
e. the term 'operation
of aircraft' means the transportation by air of passengers, livestock, goods or
mail carried on by the owners or lessees or charterers of aircraft, including
the sale of tickets for such transportation, the incidental lease of aircraft
in cluding on a charter basis and any other activity directly connected with
f. the term 'competent
the case of the People's Democratic Republic of Yemen, the Ministry of Finance
or its authorised representative;
the case of India, the Central Government in the Department of Revenue or its
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 subject of this Agreement.
OF DOUBLE TAXATION
1. Income derived by an
enterprise of a Contracting State from the operation of aircraft in
international air traffic shall be exempted from tax in the other Contracting
2. The provisions of
paragraph 1 shall also apply to income from the participation in a pool, a
joint airline business or an international operating agency.
3. For the purpose of
paragraphs 1 and 2, interest on funds connected with the operation of aircraft
in international air traffic shall be regarded as income derived from the
operation of such aircraft.
competent authorities of the Contracting States shall endeavour to resolve by
mutual agreement any difficulties or doubts arising as to the interpretation or
application of the Agreement.
of the Contracting States shall notify to the other the completion of the
procedures required by its law for the bringing into force of this Agreement.
The Agreement shall enter into force on the date of signature thereon by the
Contracting States, and shall thereupon have effect in respect of income
arising in any fiscal year commencing on or after the 1st day of January, 1983.
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
1993 give notice of termination to the other Contracting State and in such
event this Agreement shall cease to be effective in respect of income arising
in any fiscal year commencing on or after the 1st day of January next following
the calendar year in which the notice is given.
THE undersigned, duly authorised thereto, have signed the present Agreement.
New Delhi this Fifth day of August one thousand nine hundred and eighty eight
in two originals in the Hindi, Arabic and English languages, all texts being
equally authentic. In the case of divergence amongst the three texts, the
English text shall be the operative one.
the Government of the
(P. K. APPACHOO)
Secretary to the Government of India.
the Government of the
Democratic Republic of Yemen
(H.E. MOHAMED BIN MOHAMED AL-HUBEISHI)
Extraordinary and Plenipotentiary of the People's Democratic Republic of Yemen
501/1/87-FTD Notification No. 8070]