The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Government of the Republic of India, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and the Protocol to article 1. 13. September 18, Delhi signed by the Government of the Republic of Latvia and the Government of the Republic of India on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the Treaty) and 2013 September 18, New Delhi signed a Protocol (hereinafter referred to as the Protocol) with this law is adopted and approved. 2. article. The Treaty and the fulfilment of the obligations provided for in the Protocol are coordinated by the Ministry of finance. 3. article. Agreement and the Protocol shall enter into force on article 30 of the Treaty and laid down in the order, and the Ministry of Foreign Affairs shall notify the official Edition of the "journal". 4. article. The law shall enter into force on the day following its promulgation. To put the contract in law and Protocol Latvian and English. The Parliament adopted the law in 2013 on December 19. The President a. Smith in 2013 on December 28, the Government of the Republic of Latvia and the GOVERNMENT of the Republic of India on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income the Government of the Republic of Latvia and the Government of the Republic of India, reaffirming a desire to conclude an agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, to promote the two countries ' economic cooperation, agree on the following : article 1 persons covered this AGREEMENT shall apply to the contract who has one or both of the Contracting States residents. Article 2 taxes covered 1. CONTRACT this contract applies to income taxes imposed by the Contracting State or of its political or administrative units of local government, regardless of the method of collecting the tax. 2. income taxes deemed all taxes imposed on total income or on the part of income, including taxes on the capital gains of the movable or immovable property seizures. 3. The existing taxes to which the agreement relates, in particular: (a)) in India, income tax, including any benefit; (hereinafter referred to as "the Indian tax"); (b)): (i) corporate income tax; (ii) the individual income tax; (hereinafter referred to as "Latvian tax"). 4. the agreement shall also apply to any identical or substantially similar taxes which, supplementing or replacing the existing taxes are introduced after the date of signature of the Treaty. The competent authorities of the Contracting States inform each other of any substantial amendments made to the public in the relevant tax legislation. Article 3 General definitions 1. If the context does not otherwise specified, then this risk‐adjusted Agreement): (a) the term "India" means the Indian territory and includes the territorial sea and the air space above it, as well as any other marine bar, which India under Indian laws and international law, including the UN Convention on the law of the sea shall exercise sovereign rights, other rights and jurisdiction; (b)), the term "Latvia" means the Republic of Latvia, and, used in a geographical sense, it represents the territory of the Republic of Latvia and any other Latvian territorial waters adjacent to the territories in which, in accordance with the laws of Latvia and international law can be implemented in Latvia of rights on land and sea depths and natural resources contained therein; (c) the terms "a Contracting State)" and "the other Contracting State" mean depending on the context of the Republic of Latvia or the Republic of India; (d)) the term "person" means a natural person, firm, Association of persons and any other entity that, in accordance with the respective Contracting State applicable tax laws is considered the taxable unit; e the term "company") means any association or any corporate entity for taxation purposes is considered a corporate Association; (f) the terms ") of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise company, run by a resident of a Contracting State and the company, run by a resident of the other Contracting State; (g)) the term "international traffic" means any transport by a ship or aircraft by an enterprise of a Contracting State, except when the ship or aircraft is moving only in the other Contracting State; h) the term "competent authority" means: (i) in India, Minister of finance, Government of India or its authorized representative; (ii) in Latvia, the Ministry of finance or its authorised representative; I) the term "national" means: (i) any natural person who has the nationality of a Contracting State; (ii) any legal person, partnership or association, whose status as the result of contracting in force in national legislation; j) the term "tax" means depending on the context of Latvia or Indian tax, but does not include any payment that is doable for the non-performance of duty or negligence, subject to this agreement, or on such taxes imposed penalty or fine; k) the term "fiscal year" means: (i) in India, fiscal year, which begins on the first day of April; (ii) in Latvia, the tax period that begins on the first day of January or after it. 2. a Contracting State at any time during the application of this agreement, all terms not defined therein, have the meanings to them at the time, the country's laws and regulations relating to taxes covered by the agreement, unless the context is otherwise, and the risk‐adjusted State the relevant tax legislation meaning prevails over other laws of this state the intended meaning. Article 4 resident 1. In this agreement, the term "resident of a Contracting State" means any person who, under the laws of this country are taxed based on their place of residence, residence, location management, place of registration or any other similar criteria, and also includes the State and any political or administrative units of local government. However, this term does not include those individuals in that State taxes are imposed only in respect of their income from this country to the existing sources of profit or the capital. 2. Where, in accordance with the provisions of part 1 an individual is a resident of both Contracting States, its status would be as follows: (a) the person is considered to be) only for residents of the country in which they are habitually resident; If you are habitually resident in two countries, this person shall be deemed to be a resident only of the State, with which it has closer personal and economic relations (Centre of vital interests); (b)) if it is not possible to determine the country in which that person is a vibrant centre of interests, or if it is not a permanent residence in one of the two countries, this person is considered a resident of the country only, which is its usual home; c) if that person normally home in both countries or is not one of them, it is considered to be the only resident in the country, which is a national of that person; (d)) if that person is a national of both States or no, the national competent authorities of the Contracting States shall settle the question by mutual agreement. 3. Where, in accordance with the provisions of part 1 a person other than an individual is a resident of both Contracting States, the competent authorities must try to solve the issue of mutual agreement, taking into account the person's actual control of the location, the place where it was recorded, and any other relevant factors. If such an agreement does not exist, then such person shall, for the application of the Treaty, the benefit is not considered resident in one of the Contracting States. Article 5 permanent establishment 1. In this agreement, the term "permanent establishment" means a fixed place of business of the company, which is wholly or partly carried on business. 2. The term "permanent establishment" includes mainly: (a)) control location; b) branch; c) Office; (d) a factory;) e) workshop; (f)) for trade in goods; g) warehouse in respect of which the other person offers storage facilities; h) farm, plantings or other location that is performed in the farming, forestry, plantation farming or similar activities; and i) shaft, oil or gas extraction sites, quarries or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: a a building site or construction,) the installation or Assembly project, or supervisory activities associated with them, but only if they continue for more than nine months; (b)) services, including advisory services, by an enterprise of a Contracting State, employing the company's employees or other personnel, the company attracted for this purpose, but only if such activities (of the same or another project) in the other Contracting State are made for a period or periods exceeding in the aggregate six months within any twelve month period; c) Contracting State shelf area in connection with the activities carried out in the country and the existing marine subsoils and there existing natural resource exploration or exploitation, but only where such activities are carried out for a period or periods exceeding in the aggregate 30 days in any twelve month period. 4. Notwithstanding the preceding provisions of this article, the term "permanent establishment" shall not include: (a) the use of buildings and equipment) only and exclusively the goods belonging to, or for the storage of the products demonstrated or supplies; (b)) or of the goods belonging to the product items that are intended solely for storage, demonstration or delivery; (c)) or of the goods belonging to the inventory of products intended exclusively for processing in the other company. (d) the specific site) designed exclusively for the purchase of goods or products to your company's needs or the collection of information for the company's needs; e) specific action site intended solely to carry out the business of any other preparatory or ancillary activities; f) specific action site intended solely to deal with (a) to (e))) the following, in any combination thereof, if the combination of the action are generally preparatory or auxiliary character. 5. Notwithstanding paragraph 1 and 2 of the regulations, if a person not referred to in part 6 status of independent agent, in the Contracting State in the other Contracting State, works for a company, then for all activities carried out by such person for your business, it is considered that the company has a permanent establishment in the first Contracting State if: (a) that person is granted) the powers of the Contracting States to conclude agreements on behalf of the company and it constantly uses those powers, unless such person has carried out only part 4 for actions that you perform certain actions in the workplace, in accordance with that part does not make this fixed place of business of the undertaking's permanent representation, or (b)) is not the person of such powers, but it's the first in that country permanently stored items of goods or products, from which the name of the company regularly supplies goods or products; or c) this person in the first country constantly supports orders completely or almost completely in the business. 6. It is considered that the company does not have a permanent establishment in the Contracting State where the undertaking is established in that country, using only the broker, agent or any other agent of an independent status, provided that such persons perform their normal business activities. However, if such an agent is completely or almost completely in favour of the company is carried out and if the relationship between the agent and the enterprise differ from the relations which should be established between independent persons, such agent shall not be considered an agent of an independent status within the meaning of this part. In this case, the application of part 5. 7. The fact that the company-a resident of a Contracting State, controlled by the society, which is a resident of the other Contracting State, or which carries on business in that other State (via the permanent representations, or in any other way), or is subject to the control of such undertaking in itself does not mean that any of these companies is the second permanent representation of society. Article 6 INCOME from real property 1. income which a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State taxes. 2. The term "immovable property" shall have the meaning which it has its laws and regulations of a Contracting State in which the the estate. In any case, this term includes rights relating to immovable property, property that belongs to real estate property including livestock and equipment used in agriculture and forestry, rights to which the land property the General rules for the use of real property and rights to variable or fixed payments as consideration for the mineral deposits, natural ore and other natural resources, or the right to use , right on the sea and subsoils and to natural resource exploration or use of the property, including the right to participation or benefit from this property. Ships, boats and aircraft are not considered real estate. 3. the provisions of part 1 apply to the income from immovable property directly, letting or use in any other way. 4. parts 1 and 3 terms also apply in relation to income from the company's real estate, as well as income from real property used for independent personal services. Article 7 business profits 1. Contracting State company profits are taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment there. If the enterprise carries on business in that way, the company's profits may impose taxes in the other country, but only to the profit, which can be attributed to the permanent establishment. 2. in accordance with the provisions of part 3, if the Contracting State is established in the other Contracting State through a permanent establishment there, existing in each Contracting State to the permanent representations should the profit margins, as it would if it had been separated and independent company that performs the same or similar business activities under the same or similar conditions and independently carry out transactions with the company that it is a permanent establishment. 3. in determining the profits of the permanent representation are allowed to deduct the expenses incurred for the purposes of the standing representative offices located in the country or elsewhere, including operational and general administrative expenses, in accordance with the national tax legislation rules and restrictions. However, the following deductions are not allowed for payments (other than the actual expenditure), permanent representation of the cost of the main undertaking, or any other such as royalties, remuneration, Bureau or other similar payments for patents, know-how or other rights, or as a Commission or other fee for management or special services, or, except in the banking business, as interest payments on the money amounts that is loaned to the permanent representation of. Also, establishing permanent representation in return, does not take account of amounts (other than the actual expenditure), permanent representation from the main company or other it Office as royalties, fees or other similar payments for patents, know-how or other rights, or as a Commission or other fee for management or special services, or, except in the banking business cases as interest payments on the amount of money that is lent to the main undertaking, or any of its other offices. 4. On the permanent representation of the profits not only because it has purchased the goods or products for the company, which is the permanent representation. 5. for the purposes of applying the provisions of the preceding paragraph, the profits attributed to the permanent establishment shall be determined each year by the same method, except if there is sufficient reason to do otherwise. 6. If the profit is included in the other articles of this agreement are considered separate income type, this article shall not affect the other provisions of this article. Article 8 shipping and air TRANSPORT 1. Contracting State company profits gained from ships or aircraft in international traffic, the use of taxable only in that State. 2. part 1 of the Contracting State referred to in the company's profits from the containers (including trailers, barges and related equipment for the transport of containers) use, maintenance or rental of goods or products for the transport of international traffic is taxed only in the country. 3. The application of this article interest from investments that are made in a Contracting State as an integral part of the business of ships or aircraft in international traffic, the use is considered profit derived from such ships or aircraft, and in respect of such interest are not subject to the provisions of article 11. 4.1.2. and 3. subparagraph shall also apply to profits from the participation in a pool, joint business or international traffic transport agency. Article 9 ASSOCIATED enterprises 1. If: (a) the Contracting State) directly or indirectly participate in the company of the other Contracting State, in the controls or owns part of the company's capital, or b) the same persons directly or indirectly participating in the enterprise of a Contracting State in the other Contracting State and enterprise management, controls or owns part of the company's capital, and in any of these cases, these two companies in commercial or financial relations are created or established by the rules different from those provisions that the force between two independent enterprises, then any profits which would, but for one of the companies affected by the above provisions did not have, can be included in the company's profits, and it may be appropriate to impose taxes. 2. where a Contracting State includes in the profits of an enterprise of that State and taxes accordingly profits on it, in respect of which no other country in the other Contracting State, the company has been taxed, and this included the profit is the profit that would have been the first company of a Contracting State, if the relationship between the two companies would have been as exist between two independent companies, the other country take appropriate adjustment for the size of the tax What are the gains of the other country. In determining this adjustment, take into consideration other provisions of this agreement and, if necessary, the tool of the Contracting States, the competent institutional consultancy. Article 10 dividends 1. Dividends company-a resident of a Contracting State, the cost of the other Contracting State, a resident may be taxed in that other State taxes. 2. However, such dividends may also impose taxes under the national laws of the Contracting State of which the resident is a company that pays dividends, but if this the real beneficiary of the dividends is a resident of the other Contracting State, the tax shall not exceed 10 per cent of the gross amount of the dividends. This part shall not affect the taxation of company profits from which dividends. 3. The term "dividends" in this article means income from shares, or other debt obligations not resulting from the right to participate in company profits, as well as income, which in accordance with the laws of the country in which the resident is a company that performs the distribution of profits, subject to the same taxation treatment as income from shares. 4. parts 1 and 2 shall not apply if the payment of the actual beneficiary who is a resident of a Contracting State, carries on business in the other Contracting State of which the dividends is resident in the firm's costly using existing permanent representation there, or give independent personal services in the other State through a permanent base located there, and where participation, which is paid out in dividends, is actually related to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14. 5. If the company-resident of a Contracting State derives profits or income, in the other Contracting State, that other State may not impose any taxes or these companies paid dividends, except where the dividends are paid to a resident of the other State, or if the participation of which is paid out in dividends, is actually related to the permanent representation or permanent base in another country, nor to impose a tax on the profit for the whole of society even If the dividends paid or retained earnings consists in whole or in part from the other country of profit or income. Article 11 interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in that other State taxes. 2. However, such interest may be taxed taxes according to relevant national laws in the Contracting State in which they arise, but if this the real beneficiaries of the interest is a resident of the other Contracting State, the tax shall not exceed 10 per cent of the gross amount of the interest. 3. Notwithstanding the provisions of part 2, interest arising in a Contracting State, this State is exempt from taxation if it has and is the real beneficiary is: (a)) of the other Contracting State Government, political and administrative unit or municipality; or (b)) (i) in India, reserve bank of India, India's Export-Import bank and national housing bank; or (ii) in Latvia, the Bank of Latvia, Latvian mortgage and land bank and Latvian guarantee agency; or (c) any other similar) institutions for which the competent authorities of the Contracting States, in the form of an exchange of letters, over time you may agree; or (d)) Indian resident, if the interest is paid on a loan or credit issued, guaranteed or insure the Government of India, political and administrative unit or municipality, or any of the point b) in subparagraph (i) or (c) the institutions referred to in points); or (e) If a resident in Latvia) of interest on a loan or a credit issued by, or guaranteed by the Government of Latvia to insure political and administrative unit or municipality, or any of the b) point (ii), or (c) the institutions referred to in points). 4. for the purposes of this article, the term "interest" means income from debt claims of every kind, whether or not secured by mortgage and whether or not they have the right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes, which belong to these securities, bonds or debentures. The term "interest" does not include any income which, in accordance with the provisions of article 10 are treated as dividends. The application of the provisions of this article, interest received on time payments, are not considered interest. 5.1, 2 and 3 shall not apply if the interest the real beneficiary who is a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent representation of the existing there, or give independent individual services in that other State through a permanent base located therein, and of claims on the basis of which the interest is paid is effectively connected with such permanent establishment or fixed base. In this case, depending on the circumstances, apply article 7 or 14. 6. If the payer of the interest is a resident of a Contracting State, it is considered that the interest generated in this country. However, if the person who paid the interest, regardless of whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, which incurred debt obligations, on which the interest is paid, and if such interest is paid (bear) permanent establishment or a permanent basis, it is considered that this interest arises in the State in which the permanent establishment or fixed base. 7. If, on the basis of the special relationship between the payer of the interest and the interest of the true beneficiary, or between both of them and some other person, the amount of interest that relate to debt claims, for which it is paid, exceeds the amount that would have been able to agree to the interest payer and the interest of the beneficiary, if they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the payment of the part which exceeds this amount, taxes are levied according to each Contracting State laws and regulations, taking into consideration other provisions of this agreement. Article 12 royalties and remuneration for technical services 1. Royalties or remuneration for technical services arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in that other taxes the country. 2. However, such royalties or fees for technical services may also impose taxes according to relevant national laws and regulations of the Contracting State in which they arise, but if royalties or remuneration for technical services, the real beneficiary is a resident of the other Contracting State, the tax shall not exceed 10 per cent of the royalties or remuneration for technical services total. 3. (a) the term "royalties") in this article means payments of any kind received as a compensation for any literary, artistic or scientific work including cinematograph films, and films or record television or radio broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or the right to use, industrial, commercial or scientific equipment or the use of or the right to use it , or for information concerning industrial, commercial or scientific experience. (b)), the term "consideration for technical services" in this article means payments of any kind, other than those mentioned in this contract, articles 14 and 15, received as compensation for a management or technical or advisory services, including technical or other personnel services. 4. parts 1 and 2 shall not apply if the royalties or remuneration for technical services the real beneficiary who is a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or remuneration for technical services, using the existing permanent representation there, or give independent individual services in that other State through a permanent base located there, and if the rights or property of which you pay royalties or remuneration for technical services is actually related to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14. 5. a) If royalties or remuneration for technical services the payer is a resident of a Contracting State, it is considered that the royalties or remuneration for technical services arise in the country. If, however, the person paying the royalties or remuneration for technical services, regardless of whether that person is a resident of a Contracting State or not, used in the Contracting State of the existing permanent representation or permanent base located there, due to which a duty to pay royalties or remuneration for technical services, and if the royalties or remuneration for technical services cost (bear) that permanent establishment or fixed base , it is considered that the royalties or remuneration for technical services arise in the State in which the permanent establishment or fixed base. (b)) If royalties or remuneration for technical services in accordance with point (a)) does not occur in one of the Contracting States and royalties is associated with the rights or property or the right to use the property, or the consideration for technical services is related to one of the Contracting States the services provided, it is considered that the royalties or remuneration for technical services arising in a Contracting State. 6. If, on the basis of the special relationship between the payer and the true beneficiaries or between both of them and some other person, the royalties or remuneration for technical services the amount relating to the use, right or information for which it is paid, exceeds the amount that would have been able to single payer and the beneficiary, if they would not have this special relationship, the provisions of this article are applied only to the latter amount. In this case, the portion of the payment that exceeds this amount, is taxed in accordance with the national laws and regulations, taking into consideration other provisions of this agreement. Article 13 INCOME or capital gains from the ALIENATION of property 1. income or capital gains which a resident of a Contracting State derives, the disposal referred to in article 6, in the other Contracting State the existing real property, may be subject to taxes in the other country. 2. Capital gains that accrued, disposing of property, which is part of the company of a Contracting State to the permanent representation in business property in the other Contracting State, or disposing of property that belongs to a resident of a Contracting State a permanent base in the other Contracting State, established independent personal services, including capital gains from the alienation of such a permanent representation (alone or with the whole enterprise) or of such a disposal of the standing base can impose taxes in the other country. 3. Capital gains by the public company, which is used in international traffic of ships or aircraft, shall forfeit the use in international traffic of ships or aircraft or property that belongs to such ships or aircraft, are taxable only in that State. 4. Capital gains from the alienation of shares of one company, which owns directly or indirectly consist mainly of the country real estate, tax may be imposed in the country. 5. Capital gains of the company-a resident of a Contracting State, the stock, other than those referred to in part 4, seizures, tax may be imposed in the country. 6. Capital gains from the alienation of any property other than 1, 2, 3, 4 and 5, part estate, are taxable only in the Contracting State of which the resident is the seizure of property. Article 14 independent personal services 1. resident of a Contracting State – physical persons income gained from providing professional services or other independent activities are taxable only in the country, except if that person needs their activities using it regularly available permanent base the second Contracting State. If you are using such a permanent base, the income may be subject to taxes in the other country, but only to the extent that it is applicable to this permanent base. The application of this article, if a resident of a Contracting State – physical person, resident in the other Contracting State for a period or periods in General more than 183 days in any twelve month period commencing or ending in the taxation year, it is considered that the person uses it regularly available permanent base in the other State and the income that accrued on the second country made the above actions are applied to this permanent base. 2. The term "professional services" mainly includes independent scientific, literary, artistic, educational or teaching activities as well as doctors, lawyers, engineers, architects, dentists and accountants of independent operation. Article 15 dependent personal services 1.16, 18, 19, 20 and 21 the provisions of article for the payment of wages and other similar remuneration, by a resident of a Contracting State receives for gainful employment are taxable only in that State unless paid work is not performed in the other Contracting State. If the salaried work is performed in the other Contracting State, the remuneration received for it can impose taxes in the other country. 2. Notwithstanding the provisions of part 1, remuneration which a resident of a Contracting State receives for paid work that is performed in the other Contracting State, be taxable only in the first mentioned State if: (a) the beneficiary) is found in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the taxation year, and (b) the remuneration is paid), the employer that is not a resident of the other State, or the name of the employer, and c the remuneration is not paid) (bear) permanent representation or permanent base, used by the employer in the other country. 3. Notwithstanding the preceding provisions of this article, remuneration received for paid work that is being done to a company of a Contracting State in international traffic used the ship or aircraft, can impose taxes in the country. Article 16 DIRECTORS ' fees directors ' fees and other similar payments received by a resident of a Contracting State as the Board of directors or any other similar organ of a company that is a member of the other Contracting State, a resident may be taxed in that other State taxes. Article 17 artists and athletes 1. articles 14 and 15 of the regulations to the income of a resident of a Contracting State as izpildītājmāksliniek, such as a theatre, film, radio or television artist, or a musician, or as an athlete for your individual activities in the other Contracting State may be taxed in that other State taxes. 2. If izpildītājmāksliniek or athlete's income on his individual activity in the area in question is paid rather than izpildītājmāksliniek or athlete himself but to another person, to the following income regardless of the 7, 14 and 15 the provisions of article 1 may be subject to taxes in the Contracting State in which the activity or sports izpildītājmāksliniek. 3. parts 1 and 2 of the rules are not applied to the income by izpildītājmāksliniek or the athlete received about contracting State made the individual transaction, if the transaction is supported primarily from one or both of the Contracting States, or their political or administrative units of the local public finances. In this case, the income shall be taxable only in the Contracting State of which the resident is izpildītājmāksliniek, or athlete. Article 18 pensions 1. in accordance with article 19 of part 2 of the regulations for pensions and other similar remuneration received by a resident of a Contracting State for previous paid employment are taxable only in that State. 2. Notwithstanding the provisions of part 1 and part 2 of article 19 of the regulations, a pension, and other similar remuneration, which is paid in accordance with the Contracting State social insurance laws and regulations, is taxed only in the country. Article 19 government service 1 a) for salaries, fees and other similar remuneration, other than a pension and paid by the natural person contracting State or of its political or administrative unit of local government for that State or entity or municipality services are taxable only in that State. (b) However, such salaries), fees and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely to provide these services. 2. (a) to any pension to which) natural person the cost of Contracting State or of its political or administrative unit of local government, or who is paid from the funds set up for services provided by that person or entity for this country or municipality, is taxed only in the country. (b) However, such pension shall be) taxable only in the other Contracting State if the individual is a resident of the other State and national. 3.15, 16, 17, and article 18 shall apply to salaries, wages, and other similar remuneration paid to a pension in respect of services rendered in connection with a Contracting State or of its political or administrative unit of local business. Article 20 professors, teachers and scientific researchers 1. That on the teaching or research work shall receive individual who arrives in a Contracting State, to teach or to deal with the research work of the University, college or other recognized in the Contracting State in which the educational institution and is just before the arrival in the Contracting State was the second Contracting State resident, is exempt from taxation, the first in that country during the period not exceeding two years from the date on which that person first came for this purpose. 2. part 1 of this article shall not apply to income earned on the research work, if this research work is carried out rather than public interests, but mostly a specific person or persons private interests. Article 21 students payments 1 residence, study or internship needs receives a student, apprentice or trainee who is, or immediately before the arrival of the State was the territory of the other Contracting State and who was the first resident in that country have come only for the purpose of study or internship, in this country are not taxed if such payments are from sources that are not in the country. 2. Notwithstanding the provisions of article 15, the consideration that the student or the apprentice or trainee who is, or immediately before the arrival of the State was the territory of the other Contracting State and who was the first resident in that country have come only for the purpose of study or training, receives for the first country the dependent personal services in the country are not taxed, if such services are directly related and complementary to education or training, or the consideration for these services need to complement the features of residence. However, in any case, this part of the benefits are not assigned to a period of more than five consecutive years from the date on which that person first arrived in the first country. Article 22 other income 1. Other income of a resident of a Contracting State which are not stipulated in the preceding articles of this agreement, regardless of their sources are taxable only in that State. 2. the provisions of part 1 does not apply to income, other than income from article 6 defined in part 2 of the real property, if the income beneficiary who is a resident of a Contracting State, carries on business in the other Contracting State through a permanent representation of the existing there, or give independent personal services in the other State through a permanent base located there, and if the rights or property of which you receive this income is actually related to the permanent representations, or permanent base. In this case, depending on the circumstances, apply article 7 or 14. 3. Notwithstanding the provisions of part 1, if a resident of a Contracting State derives income of lottery winnings, crossword puzzles, races including horse races, card games and any other type of gaming or gambling or betting of any nature, arising in the other Contracting State, such income may be taxed in the other Contracting State taxes. Article 23 avoidance of double taxation the double taxation of the method is resolved as follows: 1. In India: a) where a resident of India derives income which, in accordance with this agreement may be subject to taxes in Latvia, India permission to reduce the resident's income tax on the amount equal to the income tax paid in Latvia. These reductions must not, however, exceed that part of the tax, which is calculated before the application of this reduction depending on the circumstances and which is attributable to the income which may be taxed taxes in Latvia. (b)) If, in accordance with any provision of this agreement, the income gained from the Indian resident is exempt from taxation in India, India, in calculating the amount of tax on other income of this resident, take into account the exempted income. 2. Latvia: a) If a resident of Latvia derives income which, in accordance with the provisions of this contract are taxable in India, Latvia, having regard to (b)) and the provisions of paragraph (c)), released the following income from taxation. (b) Where a resident of Latvia) derives income which, in accordance with article 10, part 2, part 2, article 11 and article 12 of part 2 of the regulations may impose taxes in India, residents of Latvia permit to reduce the income tax on the amount equal to the tax paid in India. These reductions must not, however, exceed that part of the tax, which is calculated before the reduction and the application of which is attributable to the income which may be taxed taxes in India. c) where in accordance with any of the provisions of the Treaty, Latvia's residents would be exempt from income taxation in Latvia, Latvia, in calculating the amount of tax on other income of this resident, take into account the exempted income. 24. Article 1 of the prevention of DISCRIMINATION on the nationals of a Contracting State in the other Contracting State shall not apply to the taxation and related requirements that are different or more burdensome than the taxation or the related requirements in the same circumstances, in particular in the context of residence applies or may apply to the nationals of the other. This provision shall, notwithstanding the provisions of article 1, also apply to persons who do not have one or both of the Contracting States residents. 2. For stateless persons – residents of a Contracting State, any of the Contracting States shall not apply to the taxation and related requirements that are different or more burdensome than the taxation or the related requirements in the same circumstances, in particular in the context of residence applies or may apply to nationals of the country concerned. 3. Taxation the company of a Contracting State to the permanent representation the other Contracting State may not be less favourable than those of other taxation public companies which perform the same operation. This provision should not be interpreted that it imposes on the Contracting State the obligation to grant the other Contracting State any personal relief to residents, discount and reduction in relation to taxation, which this country give its residents, in the light of their civil status or family responsibilities. This provision shall not be interpreted so that it prohibits contracting State in the other Contracting State to apply the company's permanent representation in the territory of the first State a higher profit rate than what is applied to the first Contracting State companies like the profits, nor that it is contrary to article 7 of part 3 of the regulations. However, the tax rate difference may not exceed 10 percentage points. 4. Except where the applicable part 1 of article 9, article 11 part 7 or article 12 part 6 rules, interest, royalties, remuneration for technical services and other payments made by the company of a Contracting State in the other Contracting State the cost of the resident by establishing this company's taxable profit must be deducted subject to the same provisions as if they were to be paid to the first residents of that State. 5. the Contracting State whose capital, in whole or in part, directly or indirectly, belongs to one or more residents of the other Contracting State or in full or in part, directly or indirectly control these residents, the first in that country may not be subject to any taxation or any requirements associated with it, which is different from the taxation and related requirements, which are or may be exposed to similar to the former State enterprises or which is more burdensome for them. 6. The provisions of this article independently of the provisions of article 2, apply to all types of and the name of the tax. 25. Article 1 mutual consultation procedures. If a person believes that one or both of the Contracting States concerning this person causes or will cause the taxation which does not comply with the terms of this agreement, that person may, irrespective of the country in national legislation that remedies to submit complaints to the competent authority of the country of which the person is resident, or if the complaint refers to part 1 of article 24, the competent authority of the country of that national is that person. The complaint shall be submitted for review within three years of the first notification of the action which led to the terms of this agreement without corresponding taxation. 2. If the competent authority deems the complaint to be justified and even fail to reach a satisfactory solution, it will endeavour to agree with the other Contracting State, the competent authority, to prevent the contract inappropriate taxation. Any such agreement is reached is due irrespective of the Contracting State, national laws and the time limits laid down. 3. the national competent authorities should seek mutual agreement resolve any difficulties or eliminate doubts which may arise in the interpretation or application of this agreement. They may also consult to avoid double taxation in this contract in the event of unforeseen circumstances. 4. in order to reach agreement on these issues in the preceding subparagraph, the competent authorities of the Contracting States may communicate directly with one another. If an agreement is desired to achieve oral exchanges, such exchanges can take place with the competent authorities of the Contracting States of the representatives of the Commission. Article 26 exchange of information 1. National competent authorities must exchange information (the "information" includes documents or certified copies of documents), this agreement or the enforcement of national legislation in relation to the type and name of all taxes imposed by a Contracting State or a political or administrative units of local government, insofar as such taxation is not contrary to the agreement. 1 and 2 of the Treaty, article does not limit the exchange of information. Any information received by a Contracting State, should be considered as sensitive as information that is obtained in accordance with the laws of this State, and may be disclosed only to persons or authorities (including courts and administrative bodies) involved in the first sentence that the calculation of the tax, or the collection, use of coercive measures or proceedings, or in appeals in respect of the tax referred to in the first sentence. Such persons or authorities, this information must be used only for the purposes mentioned above. They may disclose the information in public hearings or in judgements. Notwithstanding the above, the information received by the Contracting State, may be used for other purposes, if such information may be used for such other purposes in accordance with the laws of the Contracting States and information providers, the competent authority of the country permits such use. 2. in no case shall the provisions of part 1 should not be explained so that they bind the Contracting State the obligation: a to carry out administrative measures), which does not comply with one or other of the contracting national legislation and administrative practice; (b)) to provide information that is not available under one or the other national legislation or administrative practice generally applicable; (c)) to provide information that can reveal any trade, business, industrial, commercial or professional secret or process a transaction, or to provide information, the disclosure of which would be contrary to public policy (ordre public). 3. If a Contracting State in accordance with this article shall be required to provide the information to the other Contracting State should use its information gathering measures to obtain the requested information, even if it is considered that the information requested in the other country would not need their taxation requirements. The obligation referred to in the previous sentence applies to part 2 of the restrictions, but in no case shall such limitations may not explain that these Contracting State permits decline to provide information solely because it has no national interests with regard to this information. 4. in no case shall the provisions of part 2 may not explain that they allowed a Contracting State subject to provide information solely because the information is the holder of a bank, another financial institution, its representative or person acting on the authorisation or trust, or because it relates to ownership of the second person. Article 27 assistance in tax collection 1. the Contracting States undertake to provide each other with the help of taxpayer's outstanding collection of taxes to the extent that the amount is finally determined in accordance with the help of the requesting Contracting State legislation. 2. If a Contracting State requires you to provide assistance in the collection of taxes, the collection of which is accepted by the other Contracting State, that other State these taxes are levied in accordance with the laws and regulations applicable to this second state tax revenues, and as taxes be levied should they tax. 3. Any claim of a Contracting State to provide assistance in the collection of duties must be accompanied by a document which, in accordance with the laws of this State affirm that the taxpayer's debt is fixed. 4. where a Contracting State tax requirements have not been definitive, so that it is established in court or otherwise, that the State, in order to keep its revenues, request the other Contracting State of its right to the temporary measures for the conservation of these resources, which are applicable under the latter's national laws and regulations. If the other State agrees to fulfill such requirements, it shall take such interim measures as tax debt first to that country would have to show that the other country. 5. in accordance with the preceding paragraphs of this article the Contracting State shall submit only if this country is not available in sufficient tax property to recover the outstanding tax amount. 6. the Contracting The State in which, in accordance with the provisions of this article are charged tax, paid to the Contracting State of which the good this tax was levied, the amount of tax collected, from which, if necessary, less the part 7) referred to in paragraph (b) of the extraordinary amount of expenses. 7. If the competent authorities of the Contracting States have agreed on different rules, it is understood that: (a)) Contracting State aid during the current expenses shall be borne by that State; b) Contracting State assistance during emergency expenses shall be borne by the other State and they have to pay no matter what the amount of the tax is levied in the other State. As soon as a Contracting State anticipates that extraordinary costs may occur, it shall notify the other Contracting State and indicate the possible extent of this expenditure. 8. In this article the term "taxation" means the taxes which are subject to part 1 of article 26, and include any related interest and penalties. 9. in no case shall the provisions of this article may not be explained so that they bind the Contracting State the obligation: a to carry out administrative measures), which does not comply with one or other of the contracting national legislation and administrative practice; (b)) to take measures which would be contrary to public policy (ordre public); (c)) to provide assistance, if the other Contracting State has used all reasonable means of recovery or conservation measures that are available under its laws or administrative practice; (d)) to provide assistance in cases where the administrative burden this State is clearly disproportionate to the benefit of the other Contracting State. Article 28 Benefits limitation 1. the competent authorities by their mutual agreement, this agreement may be denied the benefits of a resident of a Contracting State or any of the transaction made the residents, if they consider that the creation or existence of a resident or the primary purpose of the transaction is to use the advantages of this agreement that it would not otherwise apply. 2. The competent authorities of the Contracting States may consult to develop mutually agreed provisions of this article. Article 29 diplomatic mission and consular personnel in the provisions of this agreement do not affect the diplomatic missions or consular posts personnel fiscal privileges which it applied in accordance with international law, the General rules or specific agreement terms. Article 30 entry into force 1. Contracting States through diplomatic channels in writing inform each other that are met by the procedures laid down for the entry into force of this Treaty. 2. This Treaty shall enter into force with this article in part 1 of this last statement date. 3. the provisions of this Agreement shall apply: (a)) in India, for income earned in April or after the first day, in any tax year following the calendar year in which the agreement enters into force; (b)): (i) in respect of taxes withheld at the time the cost-income accruing on the first day of January or after the calendar year following the year in which the notice is given; (ii) in the case of other income taxes-taxes payable for any taxation year that begins on the first day of January or after the calendar year following the year in which the notice is given. Article 31 termination This agreement is effective for an indefinite period, as long as the contracting party terminates its operations. Each Contracting State may terminate the agreement after a five-year period after the date of entry into force of the agreement, through diplomatic channels, by submitting a notice of termination at least six months before any end of the calendar year. In this case, the agreement of both Contracting States shall cease: (a)) in India, in respect of income accruing on the first day of April or after in any tax year following the calendar year in which the notice is given; (b)): (i) in respect of taxes withheld at the time the cost-income accruing on the first day of January or after the calendar year following the year in which the notice is given; (ii) in the case of other income taxes-taxes payable for any taxation year that begins on the first day of January or after the calendar year following the year in which the notice is given. In witness thereof, the undersigned, being duly authorised, have signed this agreement. Delhi drawn up in two copies in 2013 September 18, every Latvian, Hindi and English, in addition, all texts being equally authentic. Different case is decisive for the interpretation of the text in English.
The Government of the Republic of Latvia in Edgar Rinkēvič Foreign Minister of India, on behalf of the Government of the Republic of V.E. Salman Kuršid Foreign Minister Signed the Protocol of the Government of the Republic of Latvia and the Government of the Republic of India, the agreement on the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as "the agreement"), the parties, in order to clarify the application of the Treaty, have agreed upon the following provisions: 1. as regards article 5: it is understood that the date of signature of the Treaty, none of the agreements concluded by Latvia for the avoidance of double taxation does not provide for specific rules, the meaning of which the insurance company of a Contracting State has a permanent establishment in the other Contracting State, if the other country independent agents in the name of collecting premiums or insures risks. However, if after this date following a specific provision is included in any of the agreements concluded by Latvia for the avoidance of double taxation, the competent authorities of both countries for consultation should also consider the inclusion of such a provision in this agreement. 2. with regard to article 5, part 4: it is understood that article 5, the provisions of part 4 is intended to one Contracting State company would not be taxed in the other country, if that country by this second action, which is a preparatory or auxiliary character. 3. with regard to article 5, part 3: it is understood that article 5 referred to in part 3 of the surveillance activities and services do not include article 12 part 3) referred to in paragraph (b) of the activities and services. Delhi drawn up in two copies in 2013 September 18, every Latvian, Hindi and English, in addition, all texts being equally authentic. Different case is decisive for the interpretation of the text in the English language.
The Government of the Republic of Latvia in Edgar Rinkēvič Foreign Minister of India, on behalf of the Government of the Republic of Kuršid Foreign Minister Salman V.E. agreement BETWEEN the Government OF the REPUBLIC OF Latvia AND the Government OF the REPUBLIC OF India FOR the avoidance OF double TAXATION AND the PREVENTION OF FISCAL EVASION WITH RESPECT TO taxes ON income the Government of the Republic of Latvia and the Government of the Republic of India , an agreement the conclud (menu rngton Line4) for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and with a view to promoting economic cooperation between the two countries, have agreed as follows: article 1 PERSONS COVERED this Agreement shall apply to persons who are residents of one or both of the Contracting States. Article 2 taxes COVERED 1. This agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespectiv of the manner in which they are levied. 2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovabl property. 3. The existing taxes to which the agreement shall apply to: (a) in particular) in India, the income tax, including any surcharge thereon; (hereinafter referred to as "Usa tax"); (b)) in the United Kingdom: (i) the enterprise income tax (income tax of enterprises); (ii) the personal income tax (will tax revenue); (hereinafter referred to as "Latvian tax"). 4. The agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify the other of any each significant changes that have been made in their taxation laws of respectiv. Article 3 GENERAL DEFINITION 1. For the purpose of this agreement, unless the context otherwise requires: a the term) "India" means the territory of India and includes the territorial sea and the airspac above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordanc with international law , including the U.N. Convention on the Law of the sea; (b)) the term "United States" means the Republic of Latvia and, when used in the sense of location, means the territory of the Republic of Latvia and any other area adjacent to the territorial waters of the Republic of Latvia within which under the law of Latvia and in accordanc with international law, the rights of Latvia may be exercised with respect to the sea bed and its sub soil and their-natural resources; (c)) the terms "a Contracting State" and "the other Contracting State" mean the Republic of Latvia or the Republic of India, as the context requires; (d) the term "person") includes an individual, a company, a body of persons and any other entity which is treated as a unit under the taxabl taxation laws in force in the Contracting State of the respectiv; e the term "company") means any body corporate or any entity that is treated as a body corporate for tax purpose; (f) the term ") enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; h) the term "competent authority" means: (i) in India, the Finance Minister, Government of India, or his authorised representative; (ii) in Latvia, the Ministry of finance or its authorised representative; (I) the term "national") means: (i) any individual possessing the nationality of a Contracting State; (ii) any legal person, partnership or association deriving its status as such from the law in force in a Contracting State; j the term "tax") means, as Latvian or Indian tax the context requires, but shall not include any amount which is payable in respect of any default or omission in relations to the taxes to which this agreement applies or which represent a penalty or fine imposed relating to those taxes; k) the term "fiscal year" means: (i) in India, the financial year beginning on the first day of April; (ii) in Latvia, the taxation period beginning on or after the first day of January. 2. As regards the application of the agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purpose of the taxes to which the agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State. Article 4 resident 1. For the purpose of this agreement, the term "resident of a Contracting State" means any person who, under the law of that State, is liabl to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof. This term, however, does not include any person who is liabl to tax in that State in respect only of income from sources in that State or capital situated therein. 2. Where by reason of the provision of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident only of the State in which he has a permanent home available to him; If he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (Centre of vital interests); (b)) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode; c if he has an habitual) abode in both States or in ither of them, he shall be deemed to be a resident only of the State of which he is a national; (d) if he is a national) of both States or of ither of them not, the competent authorities of the Contracting States shall endeavour to the settle the question it by mutual agreement. 3. Where by reason of the provision of paragraph 1 a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall endeavour: the it settle the questions by mutual agreement having regard to the person's place of effective management, the place where It is incorporated and any other relevant factors. In the absence of such agreement, such person shall not be considered to be a resident of either Contracting State for the purpose of enjoying benefits under the agreement. Article 5 permanent establishment 1. For the purpose of this agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on. 2. The term "permanent establishment" includes especially: a a place of management); (b)) a branch; c) an Office; (d) a factory;) e) a workshop; f) a sales outlet; (g)) (a) to a person in a public warehouse providing storage facilities for others; h) a farm, plantation or other place where agricultural, forestry, plantation or related activities are carried on; and i) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. The term "permanent establishment" shall also include: а а) building site or construction, installation or assembly project, or supervisory activity connected therewith, but only if such site, project or activity lasts more than nine months; (b)) the furnishings of services, including consultancy services, by an enterprise of a Contracting State through employees or other personnel it is engaged by the enterprise for such purpose, but only where such activities continue (for the same or a connected project) in the other Contracting State for a period or periods exceeding in the aggregate six months in any twelve month period; c) activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed and sub-soil and their natural resources, but only if such activities are carried on for a period or periods exceeding in the aggregate 30 days in any twelve month period. 4. Notwithstanding the preceding provision of this article, the term "permanent establishment" shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; (b)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; (c)) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; (d)) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a features or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e))), provided that the overall activity of the fixed place of business resulting from this combination is of a features or auxiliary character. 5. Notwithstanding the provision of paragraph 1 and 2, where a person-other than an agent of an independent status to whom paragraph 6 applies-is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activities which that person undertak-for the enterprise if such a person, (a) has and habitually exercises in) that State an authority to conclud-contracts in the name of the enterprise, unless the activities of such person with limited it to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provision of that paragraph; or (b)) has such authority, but habitually from maintains in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise; or c) habitually secure orders in the first-mentioned State wholly or almost wholly, for the enterprise itself. 6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it to one business in the carr a State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, where the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, and where the conditions between the agent and the enterprise differ from those which would be made between independent persons, such agent shall not be considered an agent of an independent status within the meaning of this paragraph. In such a case, the provision of paragraph 5 shall apply. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carr to one business in that other State (whethers through a permanent establishment or otherwise), shall not of itself either company a permanent constitut establishment of the other. Article 6 income FROM IMMOVABL PROPERTY 1. Income derived by a resident of a Contracting State from immovabl property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. 2. The term "immovabl property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include rights in connection with the immovabl property, the immovabl property, property accessory livestock and equipment used in agriculture and forestry, rights to which the provision of general law respecting landed property apply, usufruc of immovabl property and rights to variable or fixed payments as considerations for the working of, or the right to work, mineral deposits , sources and others natural resources, rights to assets to be produced by the exploration or exploitation of the sea bed and sub-soil and their natural resources, including rights to interests in or to the benefit of such assets; ships, boats and aircraft shall not be regarded as immovabl property. 3. The provision of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovabl property. 4. The provision of paragraphs 1 and 3 shall also apply to the income from the immovabl property of an enterprise and to income from the immovabl property used for the performance of independent personal services. Article 7 business profits 1. The profits of an enterprise of a Contracting State shall be only in the taxabl that State unless the enterprise to one business in carr the other Contracting State through a permanent establishment situated therein. If the enterprise on business as aforesaid to carr, the profits of the enterprise may be taxed in the other State but only so much of them as is attributabl to that permanent establishment. 2. Subject to the provision of paragraph 3, where an enterprise of a Contracting State to one business in carr the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which It is a permanent establishment. 3. In determining the profits of a permanent establishment, there shall be allowed as a deduction in "of which the expense incurred for the purpose of the permanent establishment, including Executive and general administrative expense so incurred, whethers of in the State in which the permanent establishment is situated or elsewher, in accordanc with the provision of and subject to the limitations of the tax law of that State. However, no such deduction in "shall be allowed in respect of non, if any, paid (otherwise than towards reimbursemen of actual expense) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of the royalt, fe or other similar payments in return for the use of patents, know-how or other rights, or by way of commission or other charges for specific services performed or for management , or, except in the case of a banking enterprise, by way of interest on money lent to the permanent establishment. Likewis, from the account shall be taken, in the determination of the profits of a permanent establishment for a non charged (otherwise than towards reimbursemen of actual expense) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of the royalt, fe or other similar payments in return for the use of patents, know-how or other rights , or by way of commission or other charges for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on money lent to the head office of the enterprise or any of its other offices. 4. From the profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise. 5. For the purpose of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 6. Where profits include items of income which the deal with separately in other articles of this agreement, then the provision of those articles shall not be affected by the provision of this article. Article 8 SHIPPING AND AIR transport 1-profits derived by the United Nations. enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxabl only in that State. 2. the Profits of an enterprise of a Contracting State described in paragraph 1 from the use, maintenance, or rental of containers (including trailers and related equipment, for the transport of containers) used for the transport of goods or merchandise in international traffic shall be taxabl only in that State. 3. For the purpose of this article interest on investments which are made in a Contracting State as integral part of carrying on the business of operations of ships or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft, and the provision of article 11 shall not apply in relations to such interest. 4. The provision of paragraphs 1, 2 and 3 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 9 ASSOCIATED enterprises 1. Where (a) an enterprise of a Contracting) State of directly or indirectly participat in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons directly or indirectly the participat in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State , and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. 2. Where a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly-profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises , then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provision of this agreement and the competent authorities of the Contracting States shall if the cessary not consult each other. Article 10 DIVIDENDS 1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State. 2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the law of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the dividends. This paragraph shall not be affec the taxation of the company in respect of the profits out of which the dividend is paid with. 3. The term "dividends" as used in this article means income from shares or other rights, not being debt-claims, participating in profits, as well as income which is subject to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carr to one business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the holding in respect of which the dividend is paid is effectively connected with such permanent establishment or with a fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. Where a company which is a resident of a Contracting State or of deriv profits income from the other Contracting State, that other State may not impost any tax on the dividends paid by the company, except insofar as such dividends to be paid to a resident of that other State or insofar as the holding in respect of which the dividend is paid is effectively connected with a permanent establishment or a fixed base situated in the a to get other State , nor subject the company's undistributed profits ' to a tax on undistributed profits of the company ' s, even if the dividends paid or the undistributed profits wholly or partly be consis of profits or income arising in such other State. Article 11 interest 1-interest arising in a Contracting. The State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such interest may also be taxed in the Contracting State in which it «arise, and according to the law of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the interest. 3. Notwithstanding the provision of paragraph 2, interest arising in a Contracting State shall be the main from tax in that State provided it is derived and beneficially owned by: a) the Government, a political subdivision or a local authority of the other Contracting State; or (b)) (i) in the case of India, the Reserve Bank of India, the export-import Bank of India and the National Housing Bank; or (ii) in the case of a corporation, the Bank of Latvia, the mortgage and Land Bank of Latvia and the Latvian guarantee Agency; or (c) any other similar institutions) as may be agreed upon from time to time between the competent authorities of the Contracting States through the exchange of letters; or (d)) (a) a resident of India, if the interest is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the Government, a political subdivision or a local authority of India or by any of the bodies mentioned in sub-paragraph (b)) (i) or (c)); or (e) a resident of Latvia), if the interest is paid in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the Government or a local authority of the Corporation or by any of the bodies mentioned in sub-paragraph (b) or (c)) (ii)). 4. The term "interest" as used in this article means income from debt-claims of every kind, whethers or not secured by mortgage and whethers or not carrying a right to participat in the debtor's profits, and in particular, income from government securities and income from bonds or debentur, including premium and prizes attaching to such securities, bonds or debentur. The term "interest" shall not include any income which is treated as a dividend under the provision of article 10. Penalty charges for late payment shall not be regarded as interest for the purpose of this article. 5. The provision of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carr to one business in the other Contracting State in which the interest «arise, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 6. Interest shall be deemed the «arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtednes on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed the «arise in the State in which the permanent establishment or fixed base is situated. 7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this agreement. Article 12 ROYALT AND fees FOR TECHNICAL services 1 to fe for Royalt or technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such fees for the royalt or technical services may also be taxed in the Contracting State in which they «arise and according to the law of that State, but if the beneficial owner of the technical fees for the royalt or services is a resident of the other Contracting State, the tax so charged shall not exceeds 100 10 per cent of the gross amount of the fees for the royalt or technical services. 3. a) the term "royalt" as used in this article means payments of any kind received as a considerations for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes for television or radio broadcasting used, any patent, trade mark, design or model, plan, secret formula or process , or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience. (b)), the term "fees for technical services" as used in this article means payments of any kind, other than those mentioned in articles 14 and 15 of this agreement as considerations for managerial or technical or consultancy services, including the provision of services of technical or other personnel. 4. The provision of paragraphs 1 and 2 shall not apply if the beneficial owner of the technical fees for the royalt or services, being a resident of a Contracting State, carr to one business in the other Contracting State in which the royalt to or fees for technical services «arise, through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the right or property in respect of which the fees for the royalt or technical services with paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 5. a) to Pirelli for Royalt or shall be deemed it technical services «arise in a Contracting State when the payer is a resident of that State. Where, However, the person paying the fees for the royalt or technical services, whethers he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the fees for the royalt or technical services was incurred, and such fees for the royalt or technical services are borne by such permanent establishment or fixed base , then such fees for the royalt or shall be deemed it technical services «arise in the State in which the permanent establishment or fixed base is situated. (b) where under sub-paragraph) (a)) in or for Pirelli royalt technical services do not «arise in one of the Contracting States, and the royalt relate it to the use of, or the right to use, the right or property, or the fees for technical services relate to services performed, in one of the Contracting States, the fees for the royalt or shall be deemed it technical services «arise in that Contracting State. 6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the fees for the royalt or technical services, having regard to the use, right or information for which they are paid, exceeds 100 for the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship , the provision of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain the taxabl according to the law of each Contracting State, due regard being had to the other provision of this agreement. Article 13 income OR GAIN ON ALIENATION OF PROPERTY 1. Income or gains derived by a resident of a Contracting State from the alienation of property referred to immovabl in article 6 and situated in the other Contracting State may be taxed in that other State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services , including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State. 3. Gains derived by an enterprise of a Contracting State operating ships or aircraft in international traffic from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be only in the taxabl you state. 4. Gains from the alienation of shares of a company the property of which consist directly or indirectly principally of immovabl property situated in a Contracting State may be taxed in that State. 5. Gains from the alienation of shares other than those mentioned in paragraph 4 in a company which is a resident of a Contracting State may be taxed in that State. 6. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3, 4 and 5, shall be taxabl only in the Contracting State of which the alienator is a resident. Article 14 independent PERSONAL services 1-income derived by an individual. who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxabl only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributabl to that fixed base. For this purpose, where an individual who is a resident of a Contracting State stay in the other State for a period or Contracting period exceeding in the aggregate 183 days in any twelve month period commencing in or ending in the fiscal year concerned, he shall be deemed to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that are performed in that other State shall be attributabl to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. Article 15 dependent PERSONAL services 1-subject to the provision of articles 16, 18, 19, 20 and 21, salar, WAGs and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxabl only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be the taxabl only in the first-mentioned State if: a the recipient is present) in the other State for a period or periods not exceeding in the aggregate 183 days in the in any twelve month period commencing or ending in the fiscal year concerned , and b the remuneration is paid by), or on behalf of, an employer who is not a resident of the other State, and c the remuneration is not) borne by a permanent establishment or a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provision of this article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State. Article 16 DIRECTOR's FEES Director ' ' fe and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or any other similar organ of a company which is a resident of the other Contracting State may be taxed in that other State. Article 17 artistes AND SPORTSPERSON 1. Notwithstanding the provision of articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsperson, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such notes to the accru entertainer or sportsperson himself but to another person, that income may, notwithstanding the provision of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised. 3. The provision of paragraphs 1 and 2 shall not apply to income from activities performed in a Contracting State by an entertainer or a sportsperson if the activities are substantially supported by public funds of one or both of the Contracting States or political subdivisions or local authorities of the thereof. In such case, the income shall be taxabl only in the Contracting State of which the entertainer or sportsperson is a resident. Article 18 PENSION 1. Subject to the provision of paragraph 2 of article 19, and other similar remuneration paid pension to a resident of a Contracting State in considerations of past employment shall be only in the taxabl you state. 2. Notwithstanding the provision of paragraph 1 of this article and paragraph 2 of article 19, and other similar remuneration paid at pension under the social security legislation of a Contracting State shall be only in the taxabl you state. Article 19 government service 1 a) and others of the Salar, WAGs similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be only in the taxabl you state. (b) However, such, salar) WAGs and other similar remuneration shall be taxabl only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State; or (ii) did not become a resident of that State solely for the purpose of rendering the services. 2. a Any pension paid by, or) out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be only in the taxabl you state. (b) However, such pension shall be) taxabl only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. The provision of articles 15, 16, 17, and 18 shall apply to salar, and other similar remuneration, WAGs and their pension, in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof. Article 20 PROFESSOR, teachers AND RESEARCH SCHOLAR. An individual who visits a Contracting State generally for the purpose of teaching or carrying out research at a university, college or other recognized educational institution in that Contracting State and who is or was immediately before that visit a resident of the other Contracting State, shall be exempted from taxation in the first-mentioned Contracting State on remuneration for such teaching or research for a period not exceeding two years from the date of his first visit for that purpose. 2. The provision of paragraph 1 of this article shall not apply to income from research if such research is undertaken not in the public interest, but primarily for the private benefit of a specific person or persons. Article 21 STUDENTS payments which a 1 student, an apprentice or a trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training, receive for the purpose of his maintenance, education or training shall not be taxed in that State , provided that such payments «arise from sources outside that State. 2. Notwithstanding the provision of article 15, remuneration which a student, or an apprentice or trainee who is or was, immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training, receive insurance dependent personal services rendered in that first-mentioned State shall not be in the taxabl you state , provided that such services are directly related, and incidentals, it his education or training or the remuneration for those services is not the cessary to supplement resources for his maintenance. However, in any case the benefits of this paragraph shall not be granted for a period of more than five consecutive year from the date of his first arrival in the first-mentioned State. Article 22 OTHER income 1-items of income. of a resident of a Contracting State, wherever arising, not deal with in the foregoing articles of this Agreement shall be only in the taxabl you state. 2. The provision of paragraph 1 shall not apply to income, other than income from property immovabl as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carr to one business in the other Contracting State through a permanent establishment situated therein, or perform in that other State independent personal services from a fixed base situated therein , and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provision of article 7 or article 14, as the case may be, shall apply. 3. Notwithstanding the provision of paragraph 1, if a resident of a Contracting State from sources of income deriv within the other Contracting State in the form of winning from lotter, crossword puzzles, races including horse races, card games and other games of any sort or gambling or betting of any nature whatsoever, such income may be taxed in the other Contracting State. Article 23 methods FOR ELIMINATION OF double TAXATION double taxation shall be eliminated as follows: 1. In India: a) where a resident of India's income which, deriv in accordanc with the provision of this agreement, may be taxed in the United Kingdom, India shall allow as a deduction in "from the tax on the income of that resident, an amount equal to the tax paid in Latvia. Such notes shall, however, exceeds 100 Marbles that portions of the tax as computed before the deduction in "is given, which is attributabl, as the case may be, to the income which may be taxed in the United Kingdom. (b)) where in accordanc with any provision of the agreement income derived by a resident of India is main from tax in India, India may not vertheles, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. 2. In Latvia: a) where a resident of Latvia's income which, deriv in accordanc with the provision of this agreement, has been taxed in India, Latvia shall, subject to the provision of sub-paragraphs (b) and (c)), the main) such income from tax. b) where a resident of Latvia's income which in accordanc deriv with the provision of paragraph 2 of articles 10, 11 and 12, may be taxed in India, Latvia shall allow as a deduction in "from the tax on the income of that resident an amount equal to the tax paid in India. Such notes shall, however, exceeds 100 marbles the on of the tax, as computed before the deduction in "is given, which is attributabl to the income which may be taxed in India. (c)) where in accordanc with any provision of the Agreement income derived by a resident of Latvia is main from tax in Latvia, Latvia may not vertheles, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. Article 24 NON-DISCRIMINATION 1-nationals of a Contracting. State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of that other State in the same, in particular with circumstanc respect their residence, may be subjected to or. This provision shall, notwithstanding the provision of article 1, also apply to persons who are not residents of one or both of the Contracting States. 2. a person who with Stateles of residents of a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensom than the taxation and connected requirements to which nationals of the State concerned in the same, in particular with circumstanc respect their residence, may be subjected to or. 3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of the of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowance, relief and reduction for taxation purpose on account of civil status or family responsibilities which it grants to its own residents. This provision shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first mentioned Contracting State, nor as being in conflict with the provision of paragraph 3 of article 7 However. the difference in tax rate shall not exceeds 100 10 percentage points. 4. Except where the provision of paragraph 1 of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, royalt, fees for technical services and other disbursement paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxabl profits of such enterprise, be-deductibl under the same conditions as if they had been paid to a resident of the first-mentioned State. 5. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensom than the taxation and connected requirements to which other similar enterprises of the first-mentioned State may be subjected to or. 6. The provision of this article shall, notwithstanding the provision of article 2, apply to taxes of every kind and description. Article 25 MUTUAL agreement procedure 1-where a person consider. that the actions of one or both of the Contracting States result or will result for him in taxation not in accordanc with the provision of this agreement, he may, irrespectiv of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or , if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordanc with the provision of the agreement. 2. The competent authority shall endeavour, if the objection to it appear to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordanc with the agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 3. The competent authorities of the Contracting States shall endeavour to the their resolve by mutual agreement any doubt arising as to the difficult or is it the interpretation or application of the agreement. They may also consult together for the elimination of double taxation in cases not provided for in the agreement. 4. The competent authorities of the Contracting States the may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisabl in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a commission consisting of representatives of the competent authorities of the Contracting to States. Article 26 Exchange OF INFORMATION 1. The competent authorities of the Contracting the States shall exchange such information ("the information" includes documents or certified to the cop of the documents) as is cessary for not carrying out the provision of this agreement or of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the agreement. The exchange of information is not restricted by articles 1 and 2. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of , or the determination of appeal in relations to the taxes referred to in the first line. Such persons or authorities shall use the information only for such purpose. They may be published by the information in disclos court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purpose when such information may be used for for such other purpose-under the law of both States and the competent authority of the State supplying the authoris such use. 2. In no case shall the provision of of paragraph 1 be construed so as to impost on a Contracting State the obligation: a to carry out administrative) measure the at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information which is not) obtainabl is under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which.) would disclos any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public). 3. If information is requested by a Contracting State in accordanc with this article, the other Contracting State shall use its information gathering "to obtain the requested information, even though that other State may not need such information for its own tax purpose. The obligation in the preceding line led is subject to the limitations of paragraph 2 of the case shall be in such limitations be construed to permit a Contracting State to supply information to declin solely because it has from the domestic interest in such information. 4. In the case of IR the provision of paragraph 2 be construed to permit a Contracting State to supply information solely to declin because the information is held by a bank, other financial institution, or a person acting in nomine an agency or a fiduciary capacity or because it relate to ownership interests in a person. Article 27 assistance IN COLLECTION 1. The Contracting States to lend assistance to undertak each others in the collection of the taxes owed table by (a) a taxpayer to the exten that the amount thereof has been finally determined according to the law of the Contracting State making the request for assistance. 2. In the case of a request by a Contracting State for the collection of taxes which has been accepted for collection by the other Contracting State, such taxes shall be collected by that other State in accordanc with the laws applicable to the collection of its own taxes and as if the taxes to be collected were its own SOS taxes. 3. Any request for collection by a Contracting State shall be accompanied by such certificate as is required by the law of that State to establish that the taxes owed table by the taxpayer have been finally determined. 4. Where the tax claim of a Contracting State has not been finally determined by reason of it being subject to appeal or other proceedings, that State may, in order to protect its revenues, request the other Contracting State to take such interim measure on its behalf for the conservancy with available axis to the other State under the law of that other State. If such request is accepted by the other State, such interim measure shall be taken by the it as if the taxes owed table to the first-mentioned State were the own taxes of that other State. 5. A request under the preceding paragraph of this article shall only be made by a Contracting State to the exten to that sufficient property of the taxpayer, the tax of the Owings is not available in that State for recovery of the taxes owed table. 6. The Contracting State in which the tax is recovered in accordanc with the provision of this article shall forthwith remi to the Contracting State on behalf of which the tax was collected the amount so recovered minus, where appropriate, the amount of extraordinary costs referred to in subparagraph (b)) of paragraph 7.7. It is understood that unless otherwise agreed to by the competent authorities of the Contracting States both (a) costs incurred by ordinary) a Contracting State in providing assistance shall be borne by that State; (b) extraordinary costs incurred by a) Contracting State in providing assistance shall be borne by the other State and shall be payable regardless_of of the amount collected on behalf of the other State. As soon as a Contracting State of that anticipate extraordinary costs may be incurred, it shall so advise the other Contracting State and indicates the estimated amount of such costs. 8. In this article, the term "tax" means the taxes which the paragraph 1 of article 26 applies and includes any interest and penalties relating theret. 9. In no case shall the provision of of this article be construed so as to impost on a Contracting State the obligation: a to carry out administrative) measure the at variance with the laws and administrative practice of that or of the other Contracting State; (b) to carry out the ") which would be contrary to public policy (ordre public); (c) to provide assistance if) the other Contracting State has not pursued all reasonable measure of collection or conservancy, as the case may be, available under its laws or administrative practice; (d)) to provide assistance in those cases where the administrative burden for that State is clearly disproportionat to the benefit to be derived by the other Contracting State.
Article 28 Limitations of benefits 1. The competent authorities upon their the mutual agreement, may deny the benefits of this agreement to a resident of a Contracting State, or with respect to any transaction undertaken by such a resident, if in their opinion the main purpose of the creation or of such a resident existenc or of the transactions undertaken by him, was it to obtain the benefits under this agreement that would not otherwise be available. 2. The competent authorities of the Contracting States the may consult together with a view to develop a commonly agreed application of the provision of this article. Article 29 members OF DIPLOMATIC missions AND CONSULAR posts Nothing in this Agreement shall be affec the fiscal privilege of members of diplomatic missions or consular posts under the general rules of international law or under the provision of special agreements. Article 30 ENTRY into force 1. The Contracting States shall notify each other in writing, through diplomatic channels, of the completion of the procedures required by the respectiv law for the entry into force of this agreement. 2. This agreement shall enter into force on the date of the later of the notifications referred to in paragraph 1 of this article. 3. The provision of this Agreement shall have effect: (a)) in India, in respect of income derived in any fiscal year beginning on or after the first day of April next following the calendar year in which the agreement enter into force; (b)) in the United Kingdom: (i) in respect of taxes withheld at source, on income derived on after the first day of January in the calendar year next following the year in which the notice has been given; (ii) in respect of other taxes on income for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the notice has been given. Article 31 TERMINATION this Agreement shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may terminate the agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year beginning after the expiration of five years from the date of entry into force of the agreement. In such event, the agreement shall cease to have effect: (a)) in India, in respect of income derived in any fiscal year on or after the first day of April next following the calendar year in which the notice is given; (b)) in the United Kingdom: (i) in respect of tax withheld at the source, on income derived on or after the first day of January in the calendar year next following the year in which the notice has been given; (ii) in respect of other taxes on income for taxes for any fiscal year beginning chargeabl on or after the first day of January in the calendar year next following the year in which the notice has been given. In witness whereof, the undersigned, duly authorised the theret, have signed this agreement. Done in duplicate at Delhi this eighteen days of September 2013, each in the Latvian, Hindi and English languages, all texts being equally authentic. In the case of the divergenc of interpretation, the English text shall prevails.
For the Government of the Republic of Latvia by the Minister of Rinkēvič Edgar Foreign Affairs For the Government of the Republic of India Salman Khurshid H.. Minister of Foreign Affairs AGREED Note At the signing of the agreement between the Government of the Republic of Latvia and the Government of the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as "the agreement"), the undersigned have agreed upon the following provision with the purpose to clarify the application of the agreement. 1. With reference to article 7: It is understood that on the date of signature of this agreement none of the agreements for the avoidance of double taxation concluded by Latvia provide for special provision deeming an insurance enterprise of a Contracting State to have a permanent establishment in the other Contracting State if it is premium or collect insura risk in the territory of that other State through a dependent agent. However, if after that date, such special provision is included in any agreement for the avoidance of double taxation concluded by Latvia, then, after consultation between the competent authorities to be of the both States, such provision shall also be considered for this agreement. 2. With reference to paragraph 4 of article 7: It is understood that the provision of paragraph 4 of article 5 is designed to prevent the an enterprise of one Contracting State from being taxed in the other State, if it to one in that other carr State, activities of a purely features or auxiliary character. 3. With reference to paragraph 3 of article 7: It is understood that the supervisory activities or services referred it in paragraph 3 of article 5 does not include activities or services covered under sub-paragraph b) of paragraph 3 of article 12. Done in duplicate at Delhi this eighteen days of September 2013, each in the Latvian, Hindi and English languages all texts being equally authentic,. In the case of the divergenc of interpretation, the English text shall prevails.
For the Government of the Republic of Latvia by the Minister of Rinkēvič Edgar Foreign Affairs For the Government of the Republic of India Salman Khurshid H.. Minister of Foreign Affairs