`3. Where, pursuant to paragraph 1, a person other than a natural person resides in both Contracting States, the competent authorities of the Contracting States shall endeavour to determine by common accord the Contracting State in which that person is deemed to reside within the meaning of the Convention, taking into account the place of its effective management, the place where it is established or otherwise constituted: and all other relevant factors. In the absence of such an agreement, that person shall not be entitled to an exemption or exemption under this Agreement, unless the competent authorities of the States Parties so agree. (G) Any other entity wholly owned by the Government of China and agreed from time to time between the competent authorities of the States Parties; 4. Nothing in this article shall be construed as requiring a State Party to grant to residents of the other State Party personal allowances, reliefs and deductions for tax purposes on the basis of civil status or family obligations it grants to its own residents. One. Where a resident of China receives income from India, the amount of domestic tax on such income payable in India in accordance with the provisions of this Agreement may be deducted from the Chinese tax imposed on that resident. However, the loan amount must not exceed the amount of Chinese tax on this income calculated in accordance with China`s tax laws and regulations. 4. The competent authorities of the States Parties may communicate directly with each other with a view to reaching an agreement within the meaning of paragraphs 2 and 3. If it appears appropriate to reach an agreement, the representatives of the competent authorities of the Contracting States may meet for an oral exchange of views. 1. In China, double taxation is abolished as follows: (7) In this Article, the term “taxation” means the taxes that are the subject of this Agreement. a.
the term “China” means the People`s Republic of China; in a geographical sense, the entire territory of the People`s Republic of China, including its territorial sea, where China`s tax laws apply, as well as any area outside its territorial sea where the People`s Republic of China has sovereign exploration rights for any exploitation of the resources of the seabed and its groundwater and superimposed water resources in accordance with international law; 3. Without prejudice to paragraphs 1 and 2, the income of artists or athletes established in one State Party may derive from activities carried out in the other State Party, either in the context of cultural exchanges between States Parties or supported by them, in whole or in part, by public funds of one of the States Parties or from political subdivisions or local authorities; are exempt from tax in that other Contracting State. This Agreement shall not affect the fiscal privileges of diplomatic or consular agents under the general rules of international law or the provisions of special agreements. (2) However, such dividends may also be taxed in the Contracting State which owns the dividends, the tax so levied not exceeding 10 % of the gross amount of the dividends. The provisions of this paragraph shall be without prejudice to the taxation of the profits of the company from which the dividends are distributed. e. the term “person” includes a natural person, a company and any other entity treated as a taxable entity under the tax laws in force in the respective Contracting States; 2. The competent authority shall endeavour to resolve the matter by mutual agreement with the competent authority of the other State Party if it considers that the objection is justified and if it is unable to find a satisfactory solution itself in order to avoid taxes which are not in conformity with this Agreement. Any agreement reached shall be implemented without prejudice to the time limits set by the domestic law of the States Parties. 7.
Where, by reason of a special relationship between the payer and the beneficial owner or between the two and another person, the amount of interest, taking into account the claim for which it is paid, exceeds the amount that would have been agreed between the payer and the beneficial owner in the absence of such a ratio, the provisions of this Article shall apply only to the latter amount. In such a case, the excess part of the payments shall remain taxable under the laws of each Contracting State, with due regard to the other provisions of this Convention. Income Tax Act, 1961: Notification under Article 90: Agreement between the Government of the Republic of India and the Government of the People`s Republic of China on the Prevention of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income S.O. 2562(E). — whereas the Protocol amending the Protocol for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Regard to Taxes on Income, signed at New Delhi on 26 November 1994, signed at New Delhi on 26 November 2018, as set out in the Annex annexed to this Communication (hereinafter referred to as the said Protocol of Amendment); 3. . . .