Act (1997:918) About The Double Taxation Treaty Between Sweden And India

Original Language Title: Lag (1997:918) om dubbelbeskattningsavtal mellan Sverige och Indien

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Get a Day Pass for only USD$9.99.
section 1 of the agreement for the avoidance of double taxation and

Prevention of tax evasion with respect to taxes on income

and fortune India Sweden and signed on

24 June 1997, this has by the Protocol on the

Amendment of the agreement which was signed on 7 February 2013, shall

apply that law in this country. The agreement is written in Swedish,

Hindi and English. The Swedish and English text shown

of annex 1 to this Act. Team (2013:373).



section 2 of The agreement between Sweden and India about respite

with the payment of taxes during the ongoing procedure for

mutual agreement, signed on 7 February

2013 to apply that law in this country. The agreement is

written in English. The English text and a Swedish

translation appears in annex 2 to this Act.

Team (2013:373).



paragraph 3 of the agreement's tax rules shall apply only if these

involves restriction of the tax liability in Sweden that would otherwise

would exist. Team (2013:373).



Transitional provisions



1997:918



1. this law shall enter into force on the day the Government determines.



2. This Act shall apply



(a)) with respect to taxes on income, on income which is acquired on 1

January of the year following the year in which the agreement enters into force, or

later, and



(b)) in respect of wealth tax, on taxes chargeable it

the second calendar year following the year in which the agreement enters into force, or

later.



3. Through law repeals Act (1988:1495) if

double taxation treaties between Sweden and India, as well as

the Ordinance (1988:1496) of double taxation agreements between

Sweden and India.



The repealed regulations shall continue to apply



(a)) with respect to taxes on income which is acquired before 1

January of the year following the year in which the law comes into force, and



(b)) in respect of tax on assets which are assessed first

the calendar year immediately following the year in which the law comes into force or

earlier.



1997:1020



The Government states that the Act on the double taxation agreement

between Sweden and India shall enter into force on 31 december

1997.



The agreement shall enter into force on 25 december 1997.



2013:373



This law shall enter into force on the day the Government determines. The new

they may be put into effect at different times and

apply from the entry into force.



Annex 1



AGREEMENT BETWEEN THE GOVERNMENT OF THE KINGDOM OF SWEDEN AND THE REPUBLIC OF

THE GOVERNMENT OF INDIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND

PREVENTION OF TAX EVASION WITH RESPECT TO TAXES ON INCOME

AND ON FORTUNE



The Government of the Kingdom of Sweden and the Government of India

that, in order to promote economic exchanges between the two

countries, wishes to conclude an agreement for the avoidance of

double taxation and the prevention of fiscal evasion with respect to

taxes on income and on capital, have agreed

the following:



Article 1



Persons to whom the agreement applies



This agreement shall apply to persons who are domiciled in a

Contracting State or in both Contracting States.



Article 2



Taxes covered by the agreement



1. this Agreement shall apply to taxes on income and on

wealth that accrues to a Contracting State, its

political underavdelningars or local authorities

regardless of the way in which taxes are levied.



2. taxes on income and on capital, of course, all

taxes paid on income or wealth in its entirety

or on elements of income or of capital, including

taxes on gains from the alienation of movable or immovable

property, taxes on the total amount of corporate

salary payments as well as taxes on capital appreciation.



3. The currently outgoing taxes, on which this agreement

apply, specifically:



(a)) in India:



1) income taxes (the income tax), therein included

all surcharges on this tax; and



2) wealth tax (the wealth tax)



(in the following referred to as "Indian tax");



b) in Sweden:



1) state income tax, seamen's tax and

the withholding tax rate in that involved,



2) the Special income tax for non-residents,



3) the Special income tax for non-residents

artists and others,



4) the municipal income tax,



5) expansion Fund tax, and



6) State property tax



(in the following referred to as "Swedish tax").



4. the agreement also apply to taxes for the same or essentially

Similarly, after the signing of this agreement will be incurred

In addition to or in place of the currently outgoing

the taxes listed in paragraph 3. The competent authorities of the

Contracting States shall communicate to each other the essential

changes implemented in the respective tax laws.



Article 3



General definitions



1. Unless the context gives rise to different, have in the application

by this agreement the following expressions the following meaning:



a) "India" refers to the Indian territory including

the territorial sea and the air space above as well as any other

Sea area over which India under Indian law and in

conformity with international law, United Nations

Convention on the law of the sea in that involved, may exercise sovereign

rights, other rights and jurisdiction;



b) "Sweden" means the Kingdom of Sweden and the includes, when

the expression is used in the geographical sense, the territory of Sweden,

Sweden's territorial sea and other maritime areas over which the

Sweden, in conformity with international law, exercises

sovereign rights or jurisdiction;



(c)) "a Contracting State" and "the other Contracting

the State "refers to India or Sweden, as the context requires;



d) "person" includes natural persons, companies, other

personal association and the other by the taxation be treated

as a taxable entity under the applicable tax laws in the respective

Contracting State;



e) "company" means any legal person or any other that at

taxation is treated as a legal person;



f) "enterprise of a Contracting State" and "enterprise of the other

Contracting State "refers to the business carried on by any person with

resident in one Contracting State or business conducted

by a resident of the other Contracting State;



g) "international transport" means transport by ship or

aircraft used by enterprises of a Contracting State except

When the ship or aircraft are used exclusively between

places in the other Contracting State;



h) "national" means:



1) natural person which has the nationality of a

Contracting State,



2) any legal person, partnership or other

Association incorporated under the legislation of

a Contracting State;



in) "competent authority" means:



1) in India: the Central Government in the Ministry of

Finance (Department of Revenue) or its authorized

agents,



2) in Sweden: the Minister of finance or his authorised

representative or the authority which has been assigned to be competent

authority for the purposes of this agreement;



j) "fiscal year" means:



1) in India, "previous year" (previous year) so that it

defined in section 3 of the income tax Act (the Income Tax

Act), 1961;



2) in Sweden, "tax year" as defined in

paragraph 3 of the kommunalskatte law,1928;



k) "tax" means Indian or Swedish tax, depending on the

context, but shall not include any amount

paid by reason of any omission or any withholding

in terms of the taxes to which this agreement applies or which

refers to the penalty imposed in respect of those taxes.



2. Where a Contracting State applies, unless the contract is considered

no context, causing the other, each expression that does not

defined in the agreement, have the same meaning as the expression has

According to the State in respect of such taxes on

the agreement shall apply.



Article 4



Resident



1. for the purposes of this agreement, the term "person with

resident in one Contracting State "person under

the laws of that State, is liable to tax there because of

domicile, residence, place of management or any other

similar circumstances and also includes that State, its

political subdivisions, local authorities and

institutions or bodies governed by public law. In the case of

partnership or estate the term applies only to the extent

commercial company or estate income is taxed in that State

in the same way as income that are acquired by resident

where, either by trading company or the estate, or of its

co-owner or a beneficiary.



However, the term does not include a person who is liable to tax

in this State, only of income from sources in that State or

for assets located there.



2. where by reason of the provisions of paragraph 1 an individual is

a resident of both Contracting States, is determined his residence on

the following ways:



(a)) he is considered to be resident only of the State in which he has a dwelling

permanently available to him. If he has a

such property in both States, he shall be deemed to be a resident of the State

with which his personal and economic relations are

the strongest (Centre of life interests);



(b)) if it cannot be settled in the State he has Center for

their living interests or if he's not in either State have

a dwelling that is permanently available to him, shall be deemed to

he be a resident only of the State where he usually resides.



(c)) if he usually resides in both States, or if he

not reside permanently in any of them, he shall be deemed to be a resident

only in the State of which he is a national;




d) if he is a national of both States or if he is not

nationals of any of them, the competent authorities of the

Contracting States may settle the question by mutual

agreement.



3. where by reason of the provisions of paragraph 1 a person other than the

an individual is a resident of both Contracting States, it is considered

the person concerned is resident in the State where it has its real

management. If it cannot be settled in the State the real

management is available, the competent authorities shall determine the question

by mutual agreement.



Article 5



Permanent establishment



1. for the purposes of this agreement the term "fixed

establishment means a fixed place of business, from

What a business is wholly or partly carried on.



2. The term "permanent establishment" includes especially:



a) place of business management,



b) branch,



c) offices,



d) factory,



e) workshop,



f) mine, an oil or gas well, a quarry or any other place of

the extraction of natural resources,



g) point of sale,



h) warehouse in which a person provides warehouse space

in the other, and



in) agriculture, plantation or other place where agriculture,

forestry, farming, or other similar activities.



3. Place for building, construction, Assembly or

installation activities or business that consists of

monitoring in connection therewith constitutes a permanent establishment only

If the operation is in progress over a period of more than six

months.



4. A company shall be deemed to have a permanent establishment in a Contracting

State and operate through this fixed place of business of

the company provides services or facilities in connection

with, or rent out facility or equipment which

used or intended to be used in the exploration,

extraction or exploitation of mineral oils in this State.



5. Notwithstanding the preceding provisions of this article shall be deemed to

the term "permanent establishment" shall not include:



(a)) the use of facilities solely for storage,

exhibition or disclosure of company-owned goods,



(b) holding of a company belonging to) stock in trade solely

for storage, exhibition or distribution,



(c) holding of a company belonging to) stock in trade solely

for working or processing by other company,



d) holding of fixed place of business

exclusively for the purchase of goods or obtaining information

for the company,



e) holding of fixed place of business

exclusively for the enterprise carrying on other activities of the

preparatory or auxiliary nature,



f) holding of fixed place of business

exclusively for combining activities listed in

points a to e, provided that the entire operation as

conducted from the permanent place of business in

because of this combination is of a preparatory or auxiliary

art.



6. If the person who not is such independent representative on

which paragraph 8 applies-is present in a Contracting State

for an enterprise of the other Contracting State is considered

company-notwithstanding the provisions of paragraphs 1 and 2

to have a permanent establishment in the first-mentioned Contracting State in

respect of any activities which that person undertakes

the company if this person



a) have and regularly uses full power to conclude agreements in

the company name in this State, unless the activities

This person carries is limited to that specified in paragraph

5 and as-if it was conducted from a fixed place of

business-would not make this fixed place

for business to the permanent establishment according to the

the provisions of that paragraph; or



(b)) do not have such power of attorney but regularly holds a

inventories in the first State from which he regularly

delivers the goods on behalf of the company; or



c) regularly takes up the order in the first State,

exclusively or almost exclusively on behalf of the company

or for the enterprise and other enterprises that control

the company, which is controlled by the company or which is controlled

by the same people as the company.



7. Notwithstanding the preceding provisions of this article shall be deemed to

an insurance enterprise of a Contracting State to have fixed

establishment in the other Contracting State shall, except in the case of

reinsurance, if it receives premiums in that other State

territory or insures risks in this State through the

mediation by a person other than the independent representative on

what point 8 shall apply.



8. the Enterprise is not considered to have a permanent establishment in a Contracting

State only on the basis that the company conducts

business in that State through the intermediary of brokers,

Commissioner, or other independent agent, in

in doing so, provided that such person is engaged in his customary

business operations. If such an agent's activities are pursued

exclusively or almost exclusively for the company, he shall be deemed to

not, however, be an independent representative referred to

in this paragraph.



9. the fact that a company resident in a

Contracting State controls or is controlled by a

a company resident in the other Contracting State or in a

companies doing business in the other State

(either from a permanent establishment or otherwise),

not in and of itself to constitute either company a permanent establishment

for the other.



Article 6



Income from immovable property



1. income, as a person resident in one Contracting State

acquires immovable property (in that included income of agriculture

or forestry) situated in the other Contracting State, may

be taxed in that other State.



2. The term "immovable property" has the meaning the term has

According to the legislation of the Contracting State in which the property

is located. However, the term always includes accessories

immovable property, the living and the dead furniture in agriculture and

forestry, rights to which the provisions of private law

If immovable property apply, buildings, tenancies of immovable

property, and the right of changing or fixed remuneration

for the use of, or the right to use mineral occurrence,

source or another natural resource. Ships, boats and aircraft

is not considered to be real property.



3. the provisions of paragraph 1 shall apply to income acquired

through immediate use, through rental or other

use of immovable property.



4. the provisions of paragraphs 1 and 3 shall also apply to income

of immovable property belonging to the company and on the income of the firm

property used by independent professional activities.



Article 7



Income from operating



1. the Income of an enterprise of a Contracting State

acquire, shall be taxable only in that State unless the enterprise

carries on business in the other Contracting State from where

permanent establishment situated. If the enterprise carries on business just now

specified manner, the company's income is taxed in the other

the State, but only so much of them as is attributable to that

permanent establishment.



2. enterprises of a Contracting State carries on business in the

other Contracting State from where the permanent establishment situated,

are entered, unless the provisions of paragraph 3 shall give rise to another, in

Each Contracting State to the permanent establishment the

income as it can be assumed that the establishment would have acquired,

If it was a standalone company, which is operated by

the same or similar nature under the same or similar conditions

and independently completed the business with the undertaking to which the

establishment belongs.



3. In determining permanent establishment income deduction is allowed

for expenses incurred for the permanent establishment, including

included expenses for management and General

management, whether the expenditure incurred in the State in which the

permanent establishment is situated or elsewhere in

conformity with the provisions and limitations

applicable under the laws of that State.



4. income not attributable to a permanent establishment by reason only of the

the reason to purchase goods through the permanent establishment

merchandise for the enterprise.



5. for the purposes of the preceding paragraphs, income is determined as

is attributable to the permanent establishment by the same procedure

from year to year, unless good and sufficient reasons causing the

other things.



6. Included in income by operating income are treated especially

in other articles of this agreement, the provisions of these

articles of the rules contained in this article.



Article 8



Sea and air transport



1. income, which is being acquired by an enterprise of a Contracting

State through the use of the ship or aircraft in

international traffic, be taxable only in that State.



2. income acquired by a transport company established in

a Contracting State from the use, maintenance or

rental of containers (including trailers and other

equipment for the transport of containers) used for the

the transport of goods or merchandise in international traffic shall be taxable

only in that Contracting State unless the containers

used only in the other Contracting State.



3. the provisions of paragraph 1 apply to the income

acquired by the Swedish, Danish and Norwegian aviation Consortium

Scandinavian Airlines System (SAS) only in respect of the part of the

the income corresponding to the share in the Consortium held by

SAS Sweden AB, the Swedish partner of Scandinavian Airlines

System (SAS).



4. the provisions of paragraphs 1 and 2 shall also apply to income


acquired through participation in a pool, a joint business

or an international operating agency.



Article 9



Companies with associated enterprises



In cases where the



a) an enterprise of a Contracting State, either directly or indirectly

participate in the management or control of a company in the other

Contracting State or owns part of the company capital,

or



(b)) the same person participates directly or indirectly in the management,

or control of an enterprise of a Contracting State

as an enterprise of the other Contracting State or own

part in both of these corporate capital, observed the following.



If between businesses in terms of trade relations or

financial relations agreed upon or prescribed conditions, as

differ from those which would have been agreed between each other

independent company, receives all the income, that without such conditions

would have been one company but who, because of

the terms in question did not come about this company, be included in the

This company's income and taxed accordingly.



On the application of this article results in

double taxation, it may be resolved by mutual

agreement.



Article 10



Dividend



1. Dividends paid by a company resident in one Contracting State

to a resident of the other Contracting State,

be taxed in that other State.



2. Dividends may, notwithstanding the provisions of paragraph 1,

taxed in the Contracting State in which the company

paying the dividends is a resident, according to the law of that

State, but if the beneficial owner of the dividends is a resident of

the other Contracting State may not exceed 10

per cent of the gross amount of the dividends.



This paragraph does not affect the company's taxation of profit of the

the dividend is paid.



3. The term "dividends" is understood in this article income by

shares or other rights, not being debt, with the right

to share in profits, as well as income from other investments in companies, which

According to the law of the State in which the distributing company has

domicile for tax purposes is treated in the same way as income

of shares.



4. the provisions of paragraphs 1 and 2 shall not apply if the

who is entitled to the dividends is a resident of a Contracting

State and carries on business in the other Contracting State,

which the company paying the dividends is a resident, from where

permanent establishment situated or exercising independent

professional activities in the other State from where located

permanent device, and the proportion due to the

dividend paid owns actual relation to the Permanent

the establishment or the permanent devices. In such a case

apply the provisions of article 7 or article 14.



5. If the company resident in one Contracting State acquires

income from the other Contracting State, that other

State does not tax dividends paid by the company, except to the

so far as the dividend is paid to a resident of the other

State or insofar as the percentage due to the dividend payment

paid owns truly connected with a permanent establishment or

permanent device in that other State, nor

taxing the company's undistributed profits, even if the dividend

or the undistributed profits consist wholly or partly of

income arising in that other State.



Article 11



Interest rate



1. interest, stemming from a Contracting State and which

paid to a resident of the other Contracting

the State, may be taxed in that other State.



2. interest may be taxed in the Contracting

State from which it is derived, under the laws of this

State, but if the beneficial owner of the interest is a resident of the

other Contracting State may not exceed 10

per cent of the gross amount of the interest.



3. interest arising from a Contracting State shall, without

by way of derogation from paragraph 2, be exempt from tax

in this Contracting State provided that the collected

and the benefit of the interest held by, or, if the interest rate earned on

because of a loan or a line of credit that it is granted or

approved by:



1) Government, a political subdivision, a

public law body or a local authority in the other

Contracting State;



2) in India, the Reserve Bank of India, the Industrial

Finance Corporation of India, the Industrial Development Bank

of India, the Export-Import Bank of India, the National Housing

Bank, the Small Industries Development Bank of India and the

Industrial Credit and Investment Corporation of India (ICICI);

and



in Sweden, the Swedish international development cooperation agency

(Page), SWEDECORP (Swedish International

business assistance), Swedfund International AB or

Export credits guarantee Board; or



3) every other institution that, from time to time, the

competent authorities meet with agreement.



4. The term "interest" for the purposes of this article the income of

each kind of claim, whether secured by mortgage

in immovable property or not, and whether it entails the right to

interest in the debtor's profits or not. The term refers to the particular

income from securities, issued by the State, and

bonds or debentures, including premiums and therein

profits pertaining to such securities, bonds

or debentures. Penalty for late payment is considered

not that interest for the purposes of this article.



5. the provisions of paragraphs 1, 2 and 3 shall not apply if the

who is entitled to the interest is resident in a Contracting State

and carries on business in the other Contracting State, from

What interest rate are derived, from where the permanent establishment situated or

exercising independent professional activities in the other State from where

located permanent device, as well as the claim for which

the interest is paid owns truly connected with the permanent establishment

or the permanent devices. In such a case be applied

the provisions of article 7 or article 14.



6. interest shall be deemed to arise from a Contracting State if

the payer is a resident of this State, If

However, the person paying the interest, whether he is

resident in a Contracting State or not, in a

Contracting State has a permanent establishment or a permanent

device in connection with which the liability arose at the rate

paid, and the interest rate borne by the permanent establishment or the

permanent device, considered the rate obtained from the State

in which the permanent establishment or the permanent devices

There is.



7. where by reason of a special relationship between the payer and the

the beneficial owner of the interest or between both of them and other

person the amount of the interest, having regard to the debt claim for which

the interest is paid, exceeds the amount which would have been agreed

between the payer and the beneficial owner of the interest on such

relations do not exist, the provisions of this

article only at the latter amount. In such a case be taxed

excess amounts in accordance with the legislation of each

Contracting State in compliance with the other provisions of

This agreement.



Article 12



Royalty and remuneration for technical



services



1. the Royalties and compensation for technical services, arising

from a Contracting State and paid to the person with

resident in the other Contracting State, may be taxed in the

that other State.



2. Such royalties and compensation for the technical services may, without

by way of derogation from paragraph 1, be taxed even in the

Contracting State from which it is derived, according to

the laws of that State, but if the recipient is entitled to

the royalty or consideration for technical services, tax

not exceed 10% of the royaltyns or the

gross amount.



3. a), the expression "royalty" is understood in this article each

kind of payment that is received as compensation for the use

of, or the right to use, copyright of literary,

artistic or scientific work, including

cinema films, any patent, trade mark, design or model, plan,

secret recipe or secret manufacturing process or for

information concerning industrial, commercial or

scientific nature.



(b)), the expression "compensation for technical services" means

every kind of payment to a person as compensation for

services as a business leader, technician or consultant,

including the provision of services of technical and

other staff. The term does not include payments for

services referred to in articles 14 and 15 of this agreement.



4. the provisions of paragraphs 1 and 2 shall not apply if the

who is entitled to royalties or compensation for technical

services is a resident of a Contracting State and carries on

on business in the other Contracting State, from which the royalty

or payment for technical services are derived, from where

permanent establishment situated or exercising independent

professional activities in the other State from where located

permanent device, and the right or property in

respect of which the royalty or remuneration for technical

services paid owns real connection with the fixed

the establishment or the permanent devices. In such a case

apply the provisions of article 7 or article 14.



5. Royalty or remuneration for technical services shall be deemed to originate

from a Contracting State where the payer is the person with

a resident of this State. If, however, the person paying the

the royalty or consideration for technical services, either he

domiciled in a Contracting State or not, in a

Contracting State has a permanent establishment or a permanent


device in connection with which the obligation to pay the royalty

or payment for technical services arise, and

the royalty or payment for technical services are charged to the

permanent establishment or permanent device, are considered to

the royalty or payment for technical services arise from

the State in which the permanent establishment or the Permanent

the device is available.



6. where by reason of a special relationship between the payer and the

the person entitled to the royalty or remuneration for technical

services or between both of them and any other person,

royalty amount or consideration for technical services with

regard to the use, right or information

for which the royalty or payment for technical services

paid, exceeds the amount which would have been agreed between

the payer and the beneficial owner of royalties or

payment for technical services if such services are not

exist, the provisions of this article shall apply only to

the latter amount. In such a case the taxable surplus amount

According to the law of each Contracting State with

observance of the other provisions of this agreement.



Article 13



Capital gain



1. Profit, as a person resident in one Contracting State

acquires from the alienation of such immovable property

referred to in article 6 and situated in the other Contracting

the State, may be taxed in that other State.



2. Gains from the alienation of movable property forming part

of the operating assets of a permanent establishment which an enterprise of the

a Contracting State has in the other Contracting State,

or of movable property, attributable to a permanent device

in order to exercise an independent profession, as a person with

resident of a Contracting State has in the other Contracting

the State, may be taxed in that other State. The same applies to profits

the alienation of such a permanent establishment (alone

or together with the whole enterprise) or of such a

permanent device.



3. Profit as a resident of a Contracting State

acquires from the alienation of ships or aircraft

used in international traffic, or movable property which is

attributable to the use of such ship or aircraft;

shall be taxable only in that State.



The provisions of this paragraph shall apply in respect of profits

acquired by the Swedish, Danish and Norwegian aviation Consortium

Scandinavian Airlines System (SAS), but only in the case of the

part of the profits as corresponds to the participation in the consortium which

held by SAS Sweden AB, the Swedish partner of Scandinavian

Scandinavian Airlines System (SAS).



4. Gain due to the sale of shares in a company

share capital whose assets primarily, directly or

indirectly, consists of immovable property situated in a Contracting

State may be taxed in that State.



5. Gains from the alienation of property other than that

referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the

Contracting State of which the alienator is a resident during the

provided that this person is taxed on the profit in this

State. If the assignor is not taxed on the profits of the State of residence

It may be taxed in the other Contracting State.



6. Profit, due to the disposal of assets, which are acquired by

a natural person who has been domiciled in a Contracting State

and a resident of the other Contracting State shall-without

by way of derogation from point 5-taxed in the

first-mentioned Contracting State if the transfer of

the assets occurs at any time during the four years

immediately after the date on which the person ceased to have

habitual residence in the former State.



Article 14



Independent professional activities



1. income, as a person resident in one Contracting State

acquires through the exercise of profession or other independent

activities, shall be taxable only in that State except in the following

circumstances, in which case income also may be taxed in

the other Contracting State:



(a)) if he's in the other Contracting State has a

permanent device which are regularly at his

disposal to exercise activities; in such a case, only

so much of the income as is attributable to that

permanent device to be taxed in the other Contracting

the State, or



b) if his stay in the other Contracting State lasts

for a period or periods that in total,

to or exceeding 183 days in any twelve-month period,

that begins or ends in the tax year in question; in

in such case, only so much of the income as is derived from

his activities in the other State shall be taxable in the

that other State.



2. The expression "liberal profession" includes especially independent

scientific, literary and artistic activities,

educational and teaching activities and such

independent operations, as a doctor, lawyer, engineer,

Architect, surgeon, dentist and an accountant.



Article 15



Single service



1. the provisions of articles 16, 18 and 19 shall give rise

other, taxable wages and other similar remuneration paid by person

resident in one Contracting State receives due

employment only in that State unless the work is carried out in

the other Contracting State. If the work is performed in this

other State, compensation received for work are taxed

there.



2. Notwithstanding the provisions of paragraph 1 shall be taxable

compensation, as a person resident in one Contracting State

receipt for work performed in the other Contracting State,

only in the first-mentioned State if



a) recipient residing in the other State during the time period or

time periods that in total not exceeding 183 days during a

twelve-month period commencing or ending in the

the tax year in question, and



b) the remuneration is paid by the employer who is not domiciled in

the other State or on his behalf, and



c) compensation does not affect the establishment or

permanent device which the employer has in the other

State.



3. Notwithstanding the preceding provisions of this article,

remuneration for work performed on board the ship or

aircraft, used in international traffic by an enterprise

in one Contracting State, be taxed in that State. For person with

resident in Sweden receives income from work, which is carried out

on board an aircraft used in international transport of

the Swedish, Danish and Norwegian air transport Consortium Scandinavian

Scandinavian Airlines System (SAS), income is taxed only in Sweden.



Article 16



Directors ' fees



Directors ' fees and other similar remuneration, as a person with

resident in one Contracting State receives as a member of the

Board or other similar bodies in companies established in the

other Contracting State, may be taxed in that other State.



Article 17



Artists and athletes



1. Notwithstanding the provisions of articles 14 and 15,

income, as a resident of a Contracting State

acquire through their personal activities in the other

Contracting State in his capacity as a performer, such as theatre or

movie actor, radio or television artiste, or a musician,

or as athletes, be taxed in that other State.



2. In cases where the income through personal activities, artist

or athletes exercising in that capacity, not become the property of

artist or sportutövaren yourself without the other person, this

income, notwithstanding the provisions of articles 7, 14 and

15, be taxed in the Contracting State in which the artist or

sportutövaren exercise activities.



3. the provisions of paragraphs 1 and 2 shall not apply to income

through activities such as artist or athletes engaged in a

Contracting State in cases where the visit to that State

mainly financed by public funds of the other

Contracting State or of its political subdivisions

or local authorities. In such a case the taxed income

only in the State in which the artist or sportutövaren.



Article 18



Pension, payment under



social security and annuity



1. Except where the provisions of article 19 paragraph 2 shall give rise to another

receive a pension or other similar remuneration due to previous

employment, annuities and payout under

social security legislation, which derives from a

Contracting State and paid to a resident of the

other Contracting State, be taxed in the first-mentioned

Contracting State.



2. The term "annuity" means a prescribed amount, which

be paid periodically at specified times during a person's

lifetime or during a specified or ascertainable period of time, and

that is because of the obligation to give effect to these

However, payments made as remuneration for fully answering

consideration in money or money value.



Article 19



Public service



1. a) Compensation (except for retirement), paid for by a

Contracting State, one of its political subdivisions

or local authorities to natural person because of work

performed in this State, the section or governmental

service, shall be taxable only in that State.



b However, such remuneration shall be taxable only) in the second

Contracting State in which the natural person has

the resident, if the work is performed in this State, and the person in question:



1) is a national of that State, or



2) were not allowed to live in this State solely to

carry out the work.



2. a) Pensions paid by, or out of funds created by,

a Contracting State, any of its political subdivisions

or local authorities to natural person because of work


performed in this State, the section or governmental

service, shall be taxable only in that State.



(b) However, such pension shall be taxable only) in the second

Contracting State of the habitual residence of the person concerned and is

citizens of this State.



3. the provisions of articles 15, 16 and 18 shall apply to

compensation and pension payable by reason of work

performed in connection with business carried on by a Contracting

State, one of its political subdivisions or local

authorities.



Article 20



Students and trainees



1. A student or business trainee who is, or immediately

before visiting a Contracting State a resident of the

other Contracting State and who is staying in the former

State exclusively for their education or training,

except in the case of loans on favourable terms as

provided by Government or any other organization

or institution of the first State and

tax-exempt contributions and grants, be exempt from

taxation in that State if:



a) amount that he receives for his livelihood, his teaching

or practice, from people residing outside the

first State; and



b) remuneration from employment in the first State with a

amount not exceeding 10,000 (ten thousand) Swedish kronor

or its equivalent during the tax year, depending on the

the case may be, provided that such employment has

directly related to the studies or to the employment held in

order to earn his living and that his stay in the

first State lasting six months or longer.



2. the exemption provided for in this article shall be allowed only for the

time reasonably or normally required to complete

teaching, training or practice. In no case

get tax exemption allowed by this item for longer

period of five consecutive years from his arrival

to the first State.



Article 21



Professors, teachers and researchers



1. A professor, teacher or researcher who is staying in a

Contracting State at the invitation of that State or a

University, College, school or other such institution in

This State for a period not exceeding three years

exclusively for teaching, lecturing or researching at a

such an institution, and persons domiciled or resident in the

other Contracting State immediately prior to this stay,

shall be exempt from taxation in the first State

for compensation for such activities during the first year from

and by the time of his arrival, provided that

the Department obtains approval by the competent

authority in that State. For the subsequent years shall

the tax exemption only income acquired from the source

outside this State.



2. This article shall not apply to income from research if

research is conducted primarily to benefit particular persons, or

Some people's private interests.



Article 22



Other income



1. income as a resident of a Contracting State

acquires and which are not dealt with in the foregoing articles of this

Agreement shall be taxable only in that State, regardless of the origin of income

derived.



2. the provisions of paragraph 1 shall not apply to income, with

excluding income from immovable property referred to in article 6

paragraph 2, if the recipient of the income is resident in a

Contracting State, carries on business in the other

Contracting State from where the permanent establishment situated or

exercising independent professional activities in the other State from where

located permanent device, as well as the right or

property in respect of which the income is paid owns real

connected with the permanent establishment or the Permanent

the device. In such cases, apply the provisions of article 7

and article 14.



3. Notwithstanding the provisions of paragraph 1, income

person resident in one Contracting State acquires and

derived from sources in the other Contracting State in the form of

lotteries, crossword puzzles, races (including

horse races), card games and all other games or in the form

of gambling and betting otherwise, be taxed in that other

Contracting State.



Article 23



Fortune



1. Fortune consisting of such immovable property referred to in

Article 6, any person resident in one Contracting State

holds and which is situated in the other Contracting

the State, may be taxed in that other State.



2. Assets consisting of movable property forming part of the

the operating assets of a permanent establishment which an enterprise of a

Contracting State has in the other Contracting State,

or of movable property pertaining to a permanent device for

to exercise an independent profession, as resident

of a Contracting State has in the other Contracting State,

may be taxed in that other State.



3. Assets held by an enterprise of a Contracting

State and which is made up of ships and aircraft used in the

international traffic and by movable property which are attributable to

the use of such ships and aircraft shall be taxable only in

This state.



In terms of wealth held by the Swedish, Danish and

Norwegian air transport Consortium Scandinavian Airlines System (SAS),

the provisions of this article shall apply only to the part of the

the fortune that represents the percentage of the Consortium held

SAS Sweden AB, the Swedish partner of SAS.



Article 24



The Elimination of



double taxation



1. The legislation in force in the Contracting States

shall continue to govern the taxation of income in the respective

State except where the provisions of this agreement leads to another

results.



2. in the case of India, double taxation shall be avoided in

the following ways:



a) where a resident of India receives income which, in accordance with

the provisions of this agreement, may be taxed in Sweden, shall

India from the Indian tax on that person's income offset a

amount equal to the income tax paid in Sweden on

the income either directly or by deduction at source.

Such amount shall not, however, exceed that part of the

income taxes, as calculated before the deduction, which is attributable to

the income which may be taxed in Sweden.



b) where a resident of India receives income which, in accordance with

the provisions of this Agreement shall be taxable only in Sweden,

India may yet in determining the amount of the tax on

This person's remaining income shall take into account the income

shall be taxable only in Sweden.



c) If resident in India holds

capital assets in accordance with the provisions of this agreement

may be taxed in Sweden, India from Indian taxes on

This person's assets offset an amount equal to the

property tax paid in Sweden. A

such amount shall not, however, exceed that part of the

the treasure, estimated before the settlement, which is attributable to the

assets that may be taxed in Sweden.



3. in the case of Sweden, double taxation shall be avoided in

the following ways:



a) where a resident of Sweden acquires income according to

Indian law and in accordance with the provisions of this

Agreement may be taxed in India, Sweden-with regard to the

the provisions in the Swedish legislation relating to the settlement of

foreign tax (even as they now can get through

to change without the general principle as stated this change)

-from the Swedish tax on income offset an amount

equivalent to the Indian tax paid on income.



b) where a resident of Sweden receives income, which

in accordance with the provisions of this Agreement shall be taxable only in India,

get in determining Sweden-Swedish progressive tax-

consider such income which shall be taxable only in India.



c) Notwithstanding the provisions of subparagraph (a)) in this paragraph is

dividends from companies established in India to companies with

resident in Sweden exempt from Swedish tax according to the

the provisions of Swedish law on tax exemption for dividends

obtained by Swedish companies by subsidiaries abroad.



d) for the purposes of (a)) of this paragraph are considered to the expression "the

Indian tax paid "include the tax in India as

would have been paid but not paid or paid with lower

amounts due to rules on incentive measures in the

legislation in India which is intended to promote economic

development to the extent that such exemption or

tax credit granted for profits from industrial activities

or production operations or from agriculture, fisheries or

tourism industry (in that included restaurants and hotels), during

condition that the activities carried out in India. At

the application of c) in this paragraph a tax of 15 per cent

on a Swedish tax base has been considered to have been paid for

the activities under the conditions mentioned in

the previous sentence.



The competent authorities may agree to extend the

the application of this provision to other

activities.



e) (d)) shall be applied only during the first

ten years that this agreement is applied. This time period may

may be extended by mutual agreement between the competent

authorities.



f) where a resident of Sweden owns

capital assets in accordance with the laws of India and in

accordance with the provisions of this agreement, may be taxed in the

India, Sweden from tax on that person's fortune

deduct an amount equal to the property tax that


paid in India on such fortune. Settlement amount

shall not, however, exceed that part of the Swedish

the wealth tax, calculated without such a settlement, charged

on the fortune that may be taxed in India.



Article 25



Prohibition of discrimination



1. nationals of a Contracting State shall not, in the second

Contracting State be subject to taxation or

coherent demands that are of a different kind or more onerous than

the taxation and related requirements as nationals of

the other State under the same circumstances are or may be

subject to. Notwithstanding the provisions of article 1

This provision also applies to any person who is not domiciled

of a Contracting State or in both Contracting States.



2. the taxation on a permanent establishment which businesses in a

Contracting State has in the other Contracting State,

in that other State shall not be less favourable than

taxation of the company in the other State, that carries

activities of the same kind. This provision is not considered to cause

the obligation of a Contracting State to grant to any person with

resident in the other Contracting State such personal

deduction for tax purposes, such exemption or

tax reduction on the basis of marital status or

dependants against family allowed resident of

their own State. This provision is considered nor prevent a

Contracting State from taxing the profits of a firm

establishment of a company of the other Contracting State has

in the first State with a tax rate that is higher than the

levied on the profits of a similar company in the former

the State, the taxation nor be deemed to be in breach of

the provisions of article 7 paragraph 3.

3. Except where the provisions of article 9, article 11

paragraph 7 or paragraph 6 of article 12 apply, interest, royalties

and other payments from the company in a Contracting State to the

a resident of the other Contracting State

deductible in determining taxable income

for such a company on the same terms and conditions as the payment to the person

established in the first State. Similarly, debt

as a company of a Contracting State to the person with

resident in the other Contracting State deductible

the determination of such corporate taxable fortune of

same conditions as debt to a resident of the

first State.



4. Enterprises of a Contracting State, the capital of which is wholly or

partly owned or controlled, directly or indirectly, by a

or more persons resident in the other Contracting

the State shall not be subjected in the first State for

taxation or related requirements of other

kind or more burdensome than the taxation and thus

coherent requirements as other similar companies in the

first State are or may be subjected.



5. Notwithstanding the provisions of article 2 shall be applied

the provisions of this article on the taxes of every kind and

nature.



Article 26



The procedure for the mutual



agreement



1. If a person believes that a Contracting State or both

Contracting States took measures to him causes

or will result in taxation contrary to

the provisions of this agreement, he may, without prejudice to

his right to make use of the remedies contained in these

the internal legal order of States, submit the matter to the competent

authority of the Contracting State in which he is domiciled

or, in the case of application of article 25, paragraph 1, of the

Contracting State of which he is a national. The matter shall be

within three years from the time the person in question had

knowing the action giving rise to taxation as

contrary to the provisions of the agreement.



2. If the competent authority finds the complaint justified but

Unable to achieve a satisfactory solution,

the authority shall seek to resolve the matter by mutual

agreement with the competent authority of the other

Contracting State in order to avoid taxation which

contrary to the agreement. Agreement is implemented

Notwithstanding the time limits in the Contracting States

internal legislation.



3. the competent authorities of the Contracting States shall

by mutual agreement, seek to determine or

doubts arising concerning the interpretation or

the application of the agreement. They can also initiate consultations with a view to

eliminate double taxation in cases not covered by

the agreement.



4. the competent authorities of the Contracting States may

enter into direct relations with each other in order to meet

agreement in the cases specified in the preceding paragraphs. If

oral deliberations considered to facilitate an agreement,

such consultations shall take place within a Commission consisting

of representatives of the competent authorities of the

Contracting States.



Article 27 Exchange of information



1. the competent authorities of the Contracting States shall

Exchange such information (documents and certified copies of

documents in that included) which can be assumed to be relevant to the

application of the provisions of this agreement or for

Administration or enforcement of internal law in

question about taxes of every kind and nature levied

for the Contracting States, or of their political

subdivisions or local authorities, on the taxation

According to this legislation is not contrary to the agreement. Exchange

of information is not restricted by articles 1 and 2.



2. information that a Contracting State received under

paragraph 1 shall be treated as secret in the same manner as

information obtained in accordance with the internal law

in this State and shall be disclosed only to persons or

authorities (including courts and administrative bodies)

establishing, receives or collects the taxes

referred to in paragraph 1 or dealing with prosecution or appeal in

These taxes or supervising those

activities. Such persons or authorities shall use the

the information only for such purposes. They may disclose

the information in public court proceedings or in

Court decisions. Notwithstanding this, information

a Contracting State received may be used for other purposes as

such information may be used for any other purpose

under the law of both States and the competent

authority of the State providing the information allows

such use.



3. the provisions of paragraphs 1 and 2 shall not obligation

for a Contracting State that:



a) take administrative measures derogating from the legislation

and administrative practices in force in that Contracting State, or in the

the other Contracting State,



b) provide information that is not available under

legislation or the usual administrative practice in this

Contracting State or of the other Contracting

the State,

c) supply information which would disclose any

commercial, industrial, commercial or professional secret

or used in the course of trade practice or

information, whose surrender would be contrary to the public

considerations of public policy.



4. Where a Contracting State requests information under this

Article, the other Contracting State shall use the funds

as this State has to obtain the required

the information, even though that other State may not need

information for its own tax purposes.

The obligation in the previous sentence is limited by the provisions

in paragraph 3, but this does not confer a right to a

Contracting State to decline to supply information

solely because this State has no own

interest in such information.



5. the provisions of paragraph 3 does not confer a right to a

Contracting State to decline to supply information

solely because the information is held by a bank,

other financial institution, agent, representative or

managers or information regarding ownership

in a person.



Article 28



Assistance with debt collection



1. the Contracting States undertake to provide each other

assistance with the collection of the taxes covered by this agreement

apply plus interest, costs and civil

penalty charges, which relate to such taxes, which

all denoted by the phrase "tax requirements" section of this article.



2. Representation by a competent authority of a Contracting

State assistance with the recovery of tax claims

contain certificates from such authority to tax the requirement has

final determined in accordance with the laws of that State.

tax requirements are considered, according to this article, in finally determined if

a Contracting State shall be entitled to recover the tax requirement

in accordance with its internal legislation and the taxpayer does not

no longer have the right to impede recovery.



3. Amounts recovered by the competent authority of a

Contracting State under this article, shall be forwarded to the

the competent authority of the other Contracting State. The

first-mentioned Contracting State, however, has the right to

compensation for any costs incurred in connection with

assistance with such assistance, to the extent that the competent

authorities mutually agreed on this.



4. This article does not entail an obligation for either

Contracting State to take administrative measures

the measures used in the recovery of its

own tax or which would be contrary to public attention.



Article 29




Members of the diplomatic



Embassy and consulates



The provisions of this Agreement shall not affect the privileges at the

taxation which, according to the General rules of international law or

provisions of specific agreements apply members

of the diplomatic mission and consular offices.



Article 30



Date of entry into force



1. the Contracting States shall by diplomatic means

notify each other when the measures taken

According to respective State law required that this agreement

to enter into force.



2. the agreement shall enter into force thirty days after the receipt of the

the last of the notifications referred to in paragraph 1 of this

article.



3. the provisions of this Agreement shall apply:



(a)) in India,



1) in the case of income acquired during the

tax year that begins on april 1 that most closely follows the

the year in which the agreement enters into force or later,



2) in respect of assets held on the last day

of the tax year that begins on april 1 that most closely follows the

After the year in which the agreement enters into force or later,



b) in Sweden,



1) in respect of taxes on income, the income

acquired on 1 January immediately following the year in which the

the agreement enters into force or later,



2) in respect of wealth tax, the tax imposed

the second calendar year following the year in which the agreement enters into force

or later.



4. the agreement on 7 June 1988 between the Kingdom of Sweden

the Government of the Republic of India's Government to avoid

of double taxation and the prevention of fiscal evasion with respect to taxes

on income and on capital the Protocol shall cease to

apply to this agreement and the attached Protocol enters into force.

The provisions of the said Protocol, the 1988 agreement with

cease to have effect from the date on which the corresponding provisions

in this agreement for the first time shall apply in accordance with

the provisions in paragraph 2 of this article.



Article 31



Termination



This agreement will remain in force until terminated by a

Contracting State. Each Contracting State may, at the

terminate the agreement through diplomatic channels by

notice at least six months before the expiry of any

calendar year. In such a case, the agreement ceases to be valid:



(a)) in India,



1) in the case of revenue acquired it

fiscal years beginning on 1 april of the calendar year following

immediately following the calendar year in which the notice of termination

submitted or later,



2) in respect of assets held on the last day

of the tax year that begins on april 1 of the calendar year

immediately after the calendar year in which the notice of

termination is submitted or later,



b) in Sweden,



1) in the case of income tax, on income acquired

on 1 January of the year immediately following the end of

the six-month period or later,



2) in respect of wealth tax, the tax imposed

the second calendar year that immediately after the end of

the six-month period or later.



In witness whereof the undersigned, being duly

authorised, have signed this agreement.



Done at New Delhi on 24 June 1997 in duplicate in the

Swedish, hindi and English, with all three texts have

the same validity. In the event of discrepancies between the texts

the English text shall prevail.



PROTOCOL



At the signing of the agreement between the Kingdom of Sweden

the Government of the Republic the Government of India for the avoidance of

double taxation and the prevention of fiscal evasion with respect to

taxes on income and on capital, the undersigned have come

agree on the following provisions which form an integral

part of the agreement:



To article 2:



Fees paid in accordance with the Swedish

social security legislation and in accordance with the provisions of the Act

(1990:659) if payroll tax on certain earned income and

Act (1991:687) if payroll tax on pension costs

are not covered by this agreement.



To article 7:



If a company resident in one Contracting State sells

merchandise or carries on business in the other Contracting State

through a permanent establishment situated therein, there shall be fixed

establishment of profit, in application of article 7 paragraphs 1

and 2, not to be determined on the basis of the entire amount

the company receives, no profit shall be determined by

the basis of the remuneration which is attributable to that permanent

establishment of real activity in such

such sales or business. If the company has

a permanent establishment shall not the permanent establishment profits

be determined on the basis of the entire amount of the contract, in

especially in the case of contracts for monitoring,

supply, installation or construction of

industrial, commercial or scientific equipment or

premises, or public works, without the profit shall be determined

on the basis of only the portion of the contract that actually

have been carried out by the permanent establishment in the Contracting State

where the permanent establishment is situated.



To articles 10, 11 and 12:



If India under any agreement, any agreement or any

Protocol between India and a third State which is a member of

OECD, limits its taxation at source in accordance with articles 10

(Distribution), 11 (interest) and 12 (Royalties and compensation for

technical services), on dividends, interest, royalties or

compensation for engineering services at a lower percentage

or a more limited scope than the percentage

or the scope specified in this agreement on the said

income, the same percentage or the scope of that

specified in the contract, the agreement or the

the Protocol also applies pursuant to this agreement.



To article 25:



Taxation in India of the Swedish company's permanent establishments

in no case shall deviate more from the taxation of

similar Indian companies than provided for in Indian law at the

the date of signing of this agreement.



To article 27:



1. A Contracting State may allow representatives of the

competent authority of the other Contracting State

is present in the first-mentioned Contracting State to hear

natural persons and review the documents after written

consent of the persons concerned. The competent authority

in the latter Contracting State shall notify the

competent authority of the first-mentioned Contracting State

If the time and place of the meeting with these people.



2. At the request of the competent authority of a Contracting

State, the competent authority of the other Contracting

the State allow the agents of the competent authority

in the first-mentioned Contracting State are present at

tax investigation in the latter Contracting State to

the part that is considered appropriate.



3. Awarded a request pursuant to paragraph 2, the competent

authority of the Contracting State which carries out the investigation

as soon as possible inform the competent authority of the

other Contracting State if the time and place of the investigation,

If the authority or person authorised to perform the

the investigation, as well as on the procedures and conditions under which the

first-mentioned Contracting State determined for execution

of the investigation. All decisions regarding the execution of the

the investigation shall be taken by the Contracting State that performs

the investigation.



In witness whereof the undersigned, being duly

authorised, have signed this Protocol.



Done at New Delhi on 24 June 1997 in duplicate in the

Swedish, hindi and English, with all three texts have

the same validity. In the event of discrepancies between the texts

the English text shall prevail.



CONVENTION BETWEEN THE GOVERNMENT OF THE KINGDOM OF SWEDEN 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 AND ON CAPITAL



The Government of the Kingdom of Sweden and the Government of

the Republic of India, desiring to conclude a Convention for

the avoidance of double taxation and the prevention of fiscal

evasion with respect to taxes on income and on capital and with

a view to promoting economic cooperation between the two

countries, have agreed as follows:



Article 1



Personal scope



This Convention shall apply to persons who are residents of one

or both of the Contracting States.



Article 2



Taxes covered



(1) This Convention shall apply to taxes on income and on

capital imposed on behalf of a Contracting State or of its

political subdivisions or local authorities, irrespective of

the manner in which they are levied.



(2) There shall be regarded as taxes on income and on capital

all taxes imposed on total income, on total capital, or on

elements of income or of capital, including taxes on gains from

the alienation of movable or immovable property, taxes on the

the total amounts of wages or salaries paid by enterprises, as well

as taxes on capital appreciation.



(3) The existing taxes to which this Convention shall apply are

in particular:



(a) In India:



(i) the income tax, including any surcharge thereon; and



(ii) the tax on capital (the wealth tax);



(hereinafter referred to as "Indian tax");



(b) in Sweden:



(i) the income tax, including the national income tax

(the State income tax), including the tax on employees

at sea (ship's treasure) and the withholding tax on dividends

(withholding tax);



(ii) the income tax on non-residents (the Special

income tax for non-residents);



(iii) the income tax on non-resident artistes and athletes


(the Special income tax for non-resident artists

etc.);



(iv) the municipal income tax (municipal

income tax);



(v) the tax on means intended for expansion purposes

(expansion Fund tax); and



(vi) the net wealth tax;



(hereinafter referred to as "Swedish tax").



(4) The Convention shall apply also to any identical or

substantially similar taxes which are imposed after the date of

signature of the Convention in addition to, or in place of, the

existing taxes referred to in paragraph (3). The competent

authorities of the Contracting States shall notify each other

of any substantial changes which have been made in their

respective taxation laws.



Article 3



General definition



(1) For the purposes of this Convention, unless the context

otherwise requires:



(a) the term "India" means the territory of India and includes

the territorial sea and airspace 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 accordance

with international law, including the U.N. Convention on the

Law of the Sea;



(b) the term "Sweden" means the Kingdom of Sweden and, when

used in a geographical sense, includes the national territory,

the territorial sea of Canada as well as other maritime areas

over which Sweden in accordance with international law

exercises sovereign rights or jurisdiction;



(c) the terms "a Contracting State" and "the other Contracting

State "mean India or Sweden, 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 taxable

Unit under the taxation laws in force in the respective

Contracting States;



(e) the term "company" means any body corporate or any entity

which is treated as a body corporate for tax purposes;



(f) the terms "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 "national" means:



(i) any individual possessing the nationality of a

Contracting State;



(ii) any legal person, partnership and association

deriving its status as such from the laws in force in: (a)

Contracting State;



(i) the term "competent authority" means:



(i) in India: the Central Government in the Ministry of

Finance (Department of Revenue) or their authorized

representative;



(ii) in Sweden: the Minister of Finance, his authorized

representative or the authority which is designated as the

competent authority for the purposes of this Convention;



(j) the term "fiscal year" means:



(i) in the case of India, "previous year" as defined

under section 3 of the Income Tax Act, 1961;



(ii) in the case of Sweden "tax year" as defined

under section 3 of the Act Kommunalskatte,1928;



(k) the term "tax" means Indian tax or Swedish tax, as the

context requires, but shall not include any amount which is

payable in respect of any default or omission in relation to

the taxes to which this Convention applies or which represents

a penalty imposed relating to those taxes.



(2) As regards the application of the Convention by a

Contracting State, any term not defined therein shall, unless

the context otherwise requires, have the meaning which it has

under the law of that State concerning the taxes to which the

Convention applies.



Article 4



Resident



(1) For the purposes of this Convention, the term "resident of

(a) "Contracting State" means any person who, under the laws of

that State, is liable to tax therein by reason of his domicile,

residence, place of management or any other criterion of a

similar nature, and also includes that State, a political

Subdivision, a local authority and any governmental body or

agency thereof. In the case of a partnership or estate the term

applies only to the extent that the income derived by such

partnership or estate is subject to tax in that State as the

the income of a resident, either in its hands or in the hands of

its partners or with.



The term "resident of a Contracting State" does not include any

person who is liable 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 provisions 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

a permanent home available to him in both States, he shall be

deemed to be a resident 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 neither 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 neither of them,

the competent authorities of the Contracting States shall

settle the question by mutual agreement.



(3) Where by reason of the provisions of paragraph (1), (a)

person other than an individual is a resident of both

Contracting States, then it shall be deemed to be a resident of

the State in which its place of effective management is

situated. If the State in which its place of effective

management is situated cannot be determined, then the competent

authorities of the Contracting States shall settle the question

by mutual agreement.



Article 5



Permanent establishment



(1) For the purposes of this Convention, 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 mine, an oil or gas well, a quarry or any other place of

extraction of natural resources;



(g) a sales outlet;



(h) a warehouse in relation to a person providing storage

facilities for others; and



(i) a farm, plantation or other place where agricultural,

forestry, plantation or related activities are carried on.



(3) A building site or a construction, assembly or installation

project or supervisory activities in connection therewith

constitute a permanent establishment only if such site, project

or activities continue for a period of more than six months.



(4) An enterprise shall be deemed to have a permanent

establishment in a Contracting State and to carry on business

through that permanent establishment if it provides services or

facilities in connection with, or supplies plant and machinery

on hire used for or to be used in the prospecting for, or

extraction or exploitation of mineral oils in that State.



(5) Notwithstanding the preceding provisions 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 preparatory 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 preparatory or

auxiliary character.



(6) Notwithstanding the provisions of paragraphs (1) and (2),

where a person-other than an agent of an independent status

to whom paragraph (8) 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 undertakes for the

the enterprise, if such a person:



(a) has and habitually exercises in that State an authority to

conclude contracts in the name of the enterprise, unless the

activities of such person are limited to those mentioned in

paragraph (5) which, if exercised through a fixed place of

business, would not make this fixed place of business (a)

permanent establishment under the provisions of that paragraph;

or



(b) has no such authority, but habitually maintains in the

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 or for the


Enterprise and other enterprises controlling, controlled by, or

subject to the same control, as that enterprise.



(7) Notwithstanding the preceding provisions of this Article,

an insurance enterprise of a Contracting State shall, except in

regard to re-insurance, be deemed to have a permanent

establishment in the other Contracting State if it collect network

premiums in the territory of that other State or insures risks

situated therein through a person other than an agent of an

independent status to whom paragraph (8) applies.



(8) An enterprise shall not be deemed to have a permanent

establishment in a Contracting State merely because it carries

on business in that 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, when the activities of such an agent are

devoted wholly or almost wholly on behalf of that enterprise,

He will not be considered an agent of an independent status

whithin the meaning of this paragraph.



(9) 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 carries

on business in that other State (whether through a permanent

establishment or otherwise) shall not of itself constitute

either company a permanent establishment of the other.



Article 6



Income from immovable property



(1) Income derived by 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.



(2) The term "immovable 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

the include property accessory to immovable property, livestock and

equipment used in agriculture and forestry, rights to which the

the provisions of general law respecting landed property apply,

buildings, usufruct of immovable property and rights to

variable or fixed payments as consideration for the working of,

or the right to work, mineral deposits, sources and other

the natural resources; ships, boats and aircraft shall not be

regarded as immovable property.



(3) The provisions of paragraph (1) shall apply to income

derived from the direct use, letting, or use in any other form

of immovable property.



(4) The provisions of paragraphs (1) and (3) shall also apply

to the income from immovable property of an enterprise and to

income from immovable 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 taxable only in that State unless the enterprise carries on

business in the other Contracting State through a permanent

establishment situated therein. If the enterprise carries on

business as aforesaid, the profits of the enterprise may be

taxed in the other State but only so much of them as is

attributable to that permanent establishment.



(2) Subject to the provisions of paragraph (3), where an

Enterprise of a Contracting State carries on business in 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

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 deductions expenses which are

incurred for the purposes of the permanent establishment,

including executive and general administrative expenses so

incurred, whether in the State in which the permanent

establishment is situated or elsewhere, in accordance with the

the provisions of and subject to the limitations of the tax laws of

that State.



(4) No 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 purposes 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 are dealt with

separately in other Articles of this Convention, then the

the provisions of those Articles shall not be affected by the

the provisions of this Article.



Article 8



Shipping and air transport



(1) the Profits of an enterprise of a Contracting State from the

operation of ships or aircraft in international traffic shall

be taxable only in that State.



(2) Profits derived by a transportation enterprise which is a

the resident of a Contracting State from the use, maintenance, or

rental of containers (including trailers and other equipment

for the transport of containers) used for the transport of

goods or merchandise in international traffic shall be taxable

only in that Contracting State unless the containers are used

solely within the other Contracting State.



(3) With respect to profits derived by the Swedish, Danish and

Norwegian air transport consortium Scandinavian Airlines System

(SAS) the provisions of paragraph (1) shall apply only to such

part of the profits as corresponds to the participation held in

that consortium by SAS Sweden AB, the Swedish partner of

Scandinavian Airlines System (SAS).



(4) The provisions of paragraphs (1) and (2) shall also apply

to profits from the participation in a pool, a joint business

or an international operating agency.



Article 9



Associated enterprises



Where:



(a) an enterprise of a Contracting State participates directly

or indirectly in the management, control or capital of an

Enterprise of the other Contracting State, or



(b) the same persons participate directly or indirectly 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

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.



Any case resulting in double taxation from the application of

This Article may be resolved under the mutual agreement

procedure.



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) Notwithstanding the provisions of paragraph (1), such

dividends may also be taxed in the Contracting State of which

the company paying the dividends is a resident and according to

the laws 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 exceed 10 per cent of the gross amount of

the dividends.



This paragraph shall not affect the taxation of the company in

respect of the profits out of which the dividends are paid.



(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 from other

corporate rights which is subjected 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 provisions of paragraphs (1) and (2) shall not apply if

the beneficial owner of the dividends, being a resident of a

Contracting State, carries on business in the other Contracting

State of which the company paying the dividends is a resident,

through a permanent establishment situated therein, or performs

in that other State independent personal services from a fixed

base situated therein, and the holding in respect of which the

dividends are paid is effectively connected with such permanent

establishment or fixed base. In such case the provisions 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

derives profits or income from the other Contracting State,

that other State may not impose any tax on the dividends paid

by the company, except insofar as such dividends are paid to a

the resident of that other State or insofar as the holding in

respect of which the dividends are paid is effectively

connected with a permanent establishment or a fixed base

situated in that other State, nor subject the company's

undistributed profits to a tax on the company's undistributed

profits, even if the dividends paid or the undistributed

profits consist wholly or partly of profits or income arising

in such other State.



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.



(2) However, such interest may also be taxed in the Contracting

State in which it arises and according to the laws 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 exceed 10 per cent of the gross amount of the

interest.



(3) Notwithstanding the provisions of paragraph (2) interest

arising in a Contracting State shall be exempt from tax in that

Contracting State provided it is derived and beneficially owned


by, or derived in connection with a loan or credit extended or

endorsed by:



(i) the Government, a political subdivision, a statutory

body, or a local authority of the other Contracting State; or



(ii) in the case of India, the Reserve Bank of India, the

Industrial Finance Corporation of India, the Industrial

Development Bank of India, the Export-Import Bank of India, the

National Housing Bank, the Small Industries Development Bank of

India and the Industrial Credit and Investment Corporation of

India (ICICI); and



in the case of Sweden, the Swedish International Development

Authority (page), SWEDECORP (Swedish International

business assistance), Swedfund International AB or The Swedish

Export Credits Guarantee Board (Exportkreditnämnden); or



(iii) any other institution as may be agreed from time to

time between the competent authorities of the Contracting

States.



(4) The term "interest" as used in this Article means income

from debt-claims of every kind, whether or not secured by

mortgage and whether or not carrying a 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 attaching to such securities, bonds or

debentures. Penalty charges for late payment shall not be

regarded as interest for the purpose of this Article.



(5) The provisions of paragraphs (1), (2) and (3) shall not

apply if the beneficial owner of the interest, being a resident

of a Contracting State, carries on business in the other

Contracting State in which the interest arises, through a

permanent establishment situated therein, or performs in that

other State independent personal services from a fixed base

situated therein, and the debt-claim in respect of which the

the interest is paid is effectively connected with such permanent

establishment or fixed base. In such case the provisions of

Article 7 or Article 14, as the case may be, shall apply.



(6) Interest shall be deemed to arise in a Contracting State

When the payer is a resident of that State. Where, however, the

the person paying the interest, whether 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 indebtedness 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

to 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 the amount which would have

been agreed upon by the payer and the beneficial owner in the

absence of such relationship, the provisions of this Article

shall apply only to the last-mentioned amount. In such case,

the excess part of the payments shall remain taxable according

to the laws of each Contracting State, due regard being had to

the other provisions of this Convention.



Article 12



Royalties and fees for technical



services



(1) Royalties and fees for 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) Notwithstanding the provisions of paragraph (1) such

royalties and fees for technical services may also be taxed in

the Contracting State in which they arise, and according to the

the laws of that State, but if the recipient is the beneficial

owner of the royalties or fees for technical services, the tax

so charged shall not exceed 10 per cent of the gross amount of

the royalties or fees for technical services.



(3) (a) The term "royalties" as used in this Article means

payments of any kind received as a consideration for the use

of, or the right to use, any copyright of literary, artistic or

scientific work including cinematograph films, any patent,

trade mark, design or model, plan, secret formula or process,

or for information concerning industrial, commercial or

scientific experience.



(b) The term "fees for technical services" means the payment of any

cheek in consideration for the rendering of any managerial,

technical or consultancy services including the provision of

services by technical or other personnel but does not include

payments for services mentioned in Articles 14 and 15 of this

Convention.



(4) The provisions of paragraphs (1) and (2) shall not apply if

the beneficial owner of the royalties or fees for technical

services, being a resident of a Contracting State, carries on

business in the other Contracting State in which the royalties

or fees for technical services arise, through a permanent

establishment situated therein, or performs in that other State

independent personal services from a fixed base situated

therein, and the right or property in respect of which the

royalties or fees for technical services are paid is

effectively connected with such permanent establishment or

fixed base. In such case the provisions of Article 7 or Article

14, as the case may be, shall apply.



(5) Royalties or fees for technical services shall be deemed to

arise in a Contracting State when the payer is a resident of

that State. Where, however, the person paying the royalties or

fees for technical services, whether 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 royalties or fees for technical

services was incurred, and such royalties or fees for technical

services are borne by such permanent establishment or fixed

base, then such royalties or fees for technical services shall

be deemed to arise in the State in which the permanent

establishment or fixed base is situated.



(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 royalties or fees for technical

services, having regard to the use, right or information for

which they are paid, exceeds the amount which would have been

agreed upon by the payer and the beneficial owner in the

absence of such relationship, the provisions of this Article

shall apply only to the last-mentioned amount. In such case,

the excess part of the payments shall remain taxable according

to the laws of each Contracting State, due regard being had to

the other provisions of this Convention.



Article 13



Capital gains



(1) Gains derived by a resident of a Contracting State from the

alienation of immovable property referred to in Article 6 and

situated in the other Contracting State may be taxed in that

other State.



(2) Gains from 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 a resident of a Contracting State 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 taxable only in that State.



With respect to gains derived by the Swedish, Danish and

Norwegian air transport consortium Scandinavian Airlines System

(SAS), the provisions of this paragraph shall apply only to

such portion of the gains as corresponds to the participation

held in that consortium by SAS Sweden AB, the Swedish partner

of Scandinavian Airlines System (SAS).



(4) Gains from the alienation of shares of the capital stock of

a company the property of which consists directly or indirectly

principally of immovable property situated in a Contracting

State may be taxed in that State.



(5) Gains from the alienation of any property other than that

referred to in paragraphs (1), (2), (3) and (4), shall be

taxable only in the Contracting State of which the alienator is

a resident, provided that such resident is subject to tax

thereon in that State. If the resident is not subject to tax

thereon, then such gains may be taxed in the other Contracting

State.



(6) Notwithstanding the provisions of paragraph (5), gains from

the alienation of any property derived by an individual who has

been a resident of a Contracting State and who has become a

resident of the other Contracting State, may be taxed in the

the first-mentioned State if the alienation of the property occurs

at any time during the four years next following the date on

which the individual has ceased to be a resident of the first-

mentioned State.



Article 14



Independent personal services



(1) Income derived by a resident of a Contracting State in

respect of professional services or other activities of an

independent character shall be taxable only in that State

except in the following circumstances, when such income may be

taxed in the other Contracting State:



(a) if he has a fixed base regularly available to him in the

other Contracting State for the purpose of performing his

activities; in that case only so much of the income as is

attributable to that fixed base may be taxed in the other

State; or



(b) if his stay in the other State is for a period or periods

aggregating 183 days or more in any twelve month period

commencing or ending in the fiscal year concerned; in that

case, only so much of the income as is derived from his


the activities performed in that other State may be taxed in that

other State.



(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, surgeons, dentists

and accountants.



Article 15



Dependent personal services



(1) Subject to the provisions of Articles 16, 18 and 19,

salaries, wages and other similar remuneration derived by a

the resident of a Contracting State in respect of an employment

shall be taxable 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 provisions 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 taxable only in the first-mentioned State if:



(a) the recipient is present in the other State for a period or

period not exceeding in the aggregate 183 days 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

the 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 provisions 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. Where a resident of Sweden derives remuneration in

respect of an employment exercised aboard an aircraft operated

in international traffic by the Swedish, Danish and Norwegian

air transport consortium Scandinavian Airlines System (SAS),

such remuneration shall be taxable only in Malaysia.



Article 16



Directors ' fees



Directors ' fees and other similar payments derived by a

the resident of a Contracting State in his capacity as a member of

the board of directors of a company which is a resident of the

other Contracting State may be taxed in that other State.



Article 17



Artistes and sportspersons



(1) Notwithstanding the provisions of Articles 14 and 15,

income derived by a resident of a Contracting State as an

artiste, 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 artiste or a sportsperson in his capacity as such accrues

not to the artiste or sportsperson himself but to another

person, that income may, notwithstanding the provisions of

Articles 7, 14 and 15, be taxed in the Contracting State in

which the activities of the artiste or sportsperson are

exercised.



(3) The provisions of paragraphs (1) and (2), shall not apply

to income from activities performed in a Contracting State by

artistes or sportspersons if the visit to that State is

substantially supported by public funds of the other

Contracting State or of a political subdivision or local

authority thereof. In such a case, the income shall be taxable

only in the Contracting State of which the artiste or

sportsperson is a resident.



Article 18



Retirement, social security payments



and annuities



(1) Subject to the provisions of paragraph 2 of Article 19,

pensions and other similar remuneration in consideration of

past employment, annuities and payments under the Social

Security legislation arising in a Contracting State and paid to

a resident of the other Contracting State may be taxed in the

the first-mentioned Contracting State.



(2) The term "annuity" means a stated sum payable periodically

at stated times during life or during a specified or

ascertainable period of time under an obligation to make the

payments in return for adequate and full consideration in money

or money's worth.



Article 19



Government service



(1) (a) 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

taxable only in that State.



(b) However, such remuneration shall be taxable only in the

other Contracting State if the services are rendered in that

other 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

taxable only in that State.



(b) However, such pension shall be taxable only in the other

Contracting State if the individual is a resident of, and a

national of, that State.



(3) The provisions of Articles 15, 16 and 18 shall apply to

remuneration and to pensions 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



Students and apprentices



(1) A student or business apprentice 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

shall, besides loans on preferential conditions provided by the

Government or any other organization or institution of the

the first-mentioned State and tax exempt grants and scholarships,

be exempt from tax in the first-mentioned State on:



(a) payments made to him by persons residing outside the first-

mentioned State for the purpose of his maintenance, education

or training; and



(b) remuneration from employment in the first-mentioned State;

in an amount not exceeding 10.000 (ten thousand) Swedish Kronor

or its equivalent amount during any fiscal year, as the case

may be, provided that such employment is directly related to

his studies or is below the ceilings for the purpose of his maintenance

and that his stay in the first-mentioned State Marine for six

months or more.



(2) The benefit of this Article shall extend only for such

period of time as may be reasonable or customarily required to

complete the education or training below the ceilings, but in no event

shall any individual have the benefits of this Article for more

than five consecutive years from the date of his first arrival

in the first-mentioned State.



Article 21



Professors, teachers and research



scholars



(1) A professor, teacher or research scholar who visits a

Contracting State at the invitation of that State or of a

University, college, school or other such institution of that

State not exceeding three years solely for the purpose of

teaching, giving lectures or carrying out research at such

institution and who is, or was immediately before that visit, a

resident of the other Contracting State shall be exempt from

tax in the first-mentioned State, provided that the institution

in question receives approval from the competent authority of

that Contracting State on his remuneration for such activity

during the period of the first year from the date of his

arrival and in the subsequent years the exemption will be only

in respect of remuneration derived by him from outside that

State.



(2) This Article shall not apply to income from research, if

such research is under taken primarily for the private benefit

of a specific person or persons.



Article 22



Other income



(1) Items of income of a resident of a Contracting State,

wherever arising, not dealt with in the foregoing Articles of

This Convention shall be taxable only in that State.



(2) The provisions of paragraph (1) shall not apply to income,

other than income from immovable property as defined in

paragraph (2) of Article 6, if the recipient of such income,

being a resident of a Contracting State, carries on business in

the other Contracting State through a permanent establishment

situated therein, or performs 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 provisions of Article 7 or Article

14, as the case may be, shall apply.



(3) Notwithstanding the provisions of paragraph (1), if a

the resident of a Contracting State derives income from sources

within the other Contracting State in the form of lotteries,

crossword puzzles, races including horse races, card games and

other games of any sort or gambling or betting of any form or

nature whatsoever, such income may be taxed in the other

Contracting State.



Article 23



Capital



(1) Capital represented by immovable property referred to in

Article 6, owned by a resident of a Contracting State and

situated in the other Contracting State, may be taxed in that

other State.



(2) Capital represented by 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 by 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, may be taxed in that other State.



(3) Capital represented by ships and aircraft operated in

international traffic by an enterprise of a Contracting State


and by movable property pertaining to the operation of such

ships and aircraft, shall be taxable only in that State.



With respect to capital owned by the Swedish, Danish and

Norwegian air transport consortium Scandinavian Airlines System

(SAS) the provisions of this Article shall apply only to such

part of the capital as relates to the participation held in

that consortium by SAS Sweden AB, the Swedish partner of SAS.



Article 24



Elimination of double taxation



(1) The laws in force in either of the Contracting State will

continue to govern the taxation of income in the respective

Contracting States except where provisions to the contrary are

made in this Convention.



(2) In the case of India, double taxation shall be avoided as

follows:



(a) Where a resident of India derives income which, in

accordance with the provisions of this Convention, may be taxed

in Sweden, India shall allow as a deduction from the tax on the

the income of that resident an amount equal to the income tax paid

in Sweden whether directly or by way of deduction at source.

Such amount shall not however exceed that part of the income

the tax, as computed before the deduction is given, which is

attributable to the income which may be taxed in Sweden.



(b) Where a resident of India derives income which, in

accordance with the provisions of this Convention, shall be

taxable only in Sweden, India may, when determining the

graduated rate of Indian tax, take into account the income

which shall be taxable only in Malaysia.



(c) Where a resident of India owns assets which, in accordance

with the provisions of this Convention, may be taxed in Sweden,

India shall allow as a deduction from the tax on such assets an

amount equal to the tax on net wealth paid in Malaysia in respect

of such assets. Such deduction shall not, however, exceed that

part of the Indian tax on net wealth as computed before the

deduction is given which is appropriate to the assets which may

be taxed in Sweden.



(3) In the case of Sweden, double taxation shall be avoided as

follows:



(a) Where a resident of Sweden derives income which under the

the laws of India and in accordance with the provisions of this

Convention may be taxed in India, Sweden shall allow-subject

to the provisions of the laws of Sweden concerning credit for

foreign tax (as it may be amended from time to time without

changing the general principle hereof)-as a deduction from

the tax on such income, an amount equal to the Indian tax paid

in respect of such income.



(b) Where a resident of Sweden derives income which, in

accordance with the provisions of this Convention, shall be

taxable only in India, Sweden may, when determining the

graduated rate of Swedish tax, take into account the income

which shall be taxable only in India.



(c) Notwithstanding the provisions of sub-paragraph (a) of this

paragraph, dividends paid by a company which is a resident of

India to a company which is a resident of Sweden shall be

exempt from Swedish tax according to the provisions of Swedish

law governing the exemption of tax on dividends paid to Swedish

companies by subsidiaries abroad.



(d) For the purposes of sub-paragraph (a) of this paragraph the

the term "Indian tax paid" shall be deemed to include the Indian

tax which would have been paid but for any exemption or

reduction of tax granted under incentive provisions contained

in the Indian law designed to promote economic development to

the extent that such exemption or reduction is granted for

profits from industrial or manufacturing activities or from

Agriculture, fishing or tourism (including restaurants and

Hotels) provided that the activities have been carried out

within India. For the purpose of sub-paragraph (c) of this

paragraph a tax of 15 per cent calculated on a Swedish tax base

shall be considered to have been paid for such activities under the

those conditions mentioned in the previous sentence.



The competent authorities may agree to extend the application

of this provision also to other activities.



(e) The provisions of paragraph (d) shall apply only for the

first ten years during which this Convention is effective. This

period may be extended by a mutual agreement between the

competent authorities.



(f) Where a resident of Sweden owns assets which, in accordance

with the provisions of this Convention, may be taxed in India,

Sweden shall allow as a deduction from the tax on such assets an

amount equal to the tax on net wealth paid in India in respect

of such assets. Such deduction shall not, however, exceed that

part of the Swedish tax on net wealth as computed before the

deduction is given which is appropriate to the assets which may

be taxed in India.



Article 25



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 burdensome than the

taxation and connected requirements to which nationals of that

other State in the same circumstances are or may be subjected.

This provision shall, notwithstanding the provisions of Article

1, also apply to persons who are not residents of one or both

of the Contracting States.



(2) 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 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 allowances, reliefs

or reductions for taxation purposes on account of civil status

or family responsibilities which it grants to its own

residents. Further 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 provisions of paragraph 3 of

Article 7 of this Convention.



(3) Except where the provisions of Article 9, paragraph (7) of

Article 11, or paragraph (6) of Article 12, apply, interest,

royalties and other disbursements paid by an enterprise of a

Contracting State to a resident of the other Contracting State

shall, for the purpose of determining the taxable profits of

such enterprise, be deductible under the same conditions as if

they had been paid to a resident of the first-mentioned State.

Similarly, any debts of an enterprise of a Contracting State to

a resident of the other Contracting State shall, for the

purpose of determining the taxable capital of such enterprise,

be deductible under the same conditions as if they had been

contracted to a resident of the first-mentioned State.



(4) 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 subject in the first-mentioned State to any taxation or

any requirement connected therewith which is other or more

burdensome than the taxation and connected requirements to

which other similar enterprises of the first-mentioned State

are or may be subjected.



(5) The provisions of this Article shall, notwithstanding the

the provisions of Article 2, apply to taxes of every kind and

Description.



Article 26



Mutual agreement procedure



(1) Where a person considers that the actions of one or both of

the Contracting States result or will result for him in

taxation not in accordance with the provisions of this

Convention, he may, irrespective 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

25, 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

accordance with the provisions of the Convention.



(2) The competent authority shall endeavour, if the objection

appears to it 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 accordance with the Convention. 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 resolve by mutual agreement any difficulties or

doubts arising as to the interpretation or application of the

Convention. They may also consult together for the elimination

of double taxation in cases not provided for in the Convention.



(4) The competent authorities of the Contracting States may

communicate with each other directly for the purpose of

reaching an agreement in the sense of the preceding paragraphs.

When it seems advisable in order to reach agreement to have an

oral exchange of opinion, such exchange may take place through

a Commission consisting of representatives of the competent

authorities of the Contracting States.



Article 27 Exchange of information



(1) The competent authorities of the Contracting States shall

Exchange such information (including documents or certified

copies of the documents) as is foreseeably relevant for

carrying out the provisions of this Convention or to the

Administration or enforcement 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 Convention. The exchange of information is

not restricted by Articles 1 and 2.



(2) Any information received under paragraph 1 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, the determination

of appeals in relation to the taxes referred to in paragraph

1, or the oversight of the above. Such persons or authorities

shall use the information only for such purposes. They may

disclose the information in public court proceedings or in

judicial decisions. Notwithstanding the foregoing,

information received by a Contracting State may be used for

other purposes when such information may be used for such

other purposes under the laws of both States and the

competent authority of the supplying State authorises such

use.



(3) In no case shall the provisions of paragraphs 1 and 2 be

construed so as to impose on a Contracting State the

bond:



(a) to carry out administrative measures at variance with the

laws and administrative practice of that or of the other

Contracting State;



(b) to supply information which is not obtainable 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 disclose 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).



(4) If information is requested by a Contracting State in

accordance with this Article, the other Contracting State

shall use its information gathering measures to obtain the

requested information, even though that other State may not

need such information for its own tax purposes. The

obligation contained in the preceding sentence is subject to

the limitations of paragraph 3 but in no case shall such

limitations be construed to permit a Contracting State to

decline to supply information solely because it has no

domestic interest in such information.



(5) In no case shall the provisions of paragraph 3 be

construed to permit a Contracting State to decline to supply

information solely because the information is held by a bank,

other financial institution, nominee or person acting in an

Agency or a fiduciary capacity or because it relates to

ownership interests in a person.



Article 28



Collection assistance



(1) The Contracting States undertake to lend assistance to each

other in the collection of taxes to which this Convention

relates, together with interest, costs, and civil penalties

relating to such taxes, referred to in this Article as a

"revenue claim".



(2) the Request for assistance by the competent authority of a

Contracting State in the collection of a revenue claim shall

include (a) certification by such authority that, under the laws

of that State, the revenue claim has been finally determined.

For the purposes of this Article, a revenue claim is finally

determined when a Contracting State has the right under its

internal law to collect the revenue claim and the taxpayer has

no further rights to restrain collection.



(3) the Amount collected by the competent authority of a

Contracting State pursuant to this Article shall be forwarded

to the competent authority of the other Contracting State.

However, the first-mentioned Contracting State shall be

entitled to reimbursement of costs, if any, incurred in the

course of rendering such assistance to the extent mutually

agreed between the competent authorities of the two States.



(4) Nothing in this Article shall be construed as imposing on

either Contracting State the obligation to carry out

administrative measures of a different nature from those used

in the collection of its own taxes or those which would be

contrary to its public policy.



Article 29



Members of diplomatic missions



and consular posts



Nothing in this Convention shall affect the fiscal privileges

of members of diplomatic missions and consular posts under the

General rules of international law or under the provisions of

Special agreements.



Article 30



Entry into force



(1) The Contracting States shall notify each other in writing,

through diplomatic channels, the completion of the procedures

required by the respective laws for the entry into force of

This Convention.



(2) This Convention shall enter into force thirty days after

the receipt of the latter of the notifications referred to in

paragraph (1) of this Article.



(3) The provisions of this Convention shall have effect:



(a) in India,



(i) in respect of income arising in any fiscal year

beginning on or after the first day of April next following the

calendar year in which the Convention enters into force;



(ii) in respect of capital which is held on the last day

of any fiscal year beginning on or after the first day of April

following the calendar year in which this Convention enters

into force;



(b) in Sweden,



(i) in respect of taxes on income, on income derived on

or after the first day of January of the year next following

that of the entry into force of the Convention;



(ii) in respect of tax on net wealth, for tax which is

assessed on or after the second calendar year following that in

which the Convention enters into force.



(4) The Convention of 7 June 1988 between the Government of the

Republic of India and the Government of the Kingdom of Sweden

for the avoidance of double taxation and the prevention of

fiscal evasion with respect to taxes on income and on capital

with Protocol shall terminate upon the coming into force of

This Convention and accompanying Protocol. The provisions of

the PM said the 1988 Convention with Protocol shall cease to have

effect from the date on which the corresponding provisions of

This Convention and accompanying Protocol shall, for the first

time, have effect according to the provisions of paragraph (2)

of this Article.



Article 31



Termination



This Convention shall remain in force until terminated by a

Contracting State. Either Contracting State may terminate the

The Convention, through diplomatic channels, by giving written

notice of termination at least six months before the end of any

calendar year. In such case, the Convention shall cease to have

effect:



(a) in India,



(i) in respect of income arising in any fiscal year

beginning on or after the first day of January following the

calendar year in which the notice of termination is given;



(ii) in respect of capital which is held on the last day

of any fiscal year beginning on or after the first day of April

following the calendar year in which the notice of termination

is given;



(b) in Sweden,



(i) in respect of taxes on income, on income derived on

or after the first day of January of the year next following

the end of the six months period;



(ii) in respect of tax on net wealth, for tax which is

assessed in or after the second calendar year following the end

of the six months period.



In witness whereof the undersigned being duly authorized

thereto have signed this Convention.



Done in duplicate at New Delhi, this 24th day of June 1997, in

the Swedish, Hindi and English languages, all three texts being

equally authentic. In case of divergence between the texts the

The English text shall be the operative one.



PROTOCOL



At the signing of the Convention between the Government of the

Kingdom of Sweden 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 and on capital,

the undersigned have agreed that the following shall form an

integral part of the Convention:



With reference to Article 2:



The fees paid under the Social Security Legislation and Swedish

According to the provisions of the Act (1990:659) on Special

salary tax on earned income and the Act (1991:687) on Special

salary tax on pension costs are not included in this

Convention.



With reference to Article 7:



In respect of paragraphs (1) and (2) of Article 7, where an

the enterprise of one of the Contracting States sells goods or

merchandise or carries on business in the other Contracting

State through a permanent establishment situated therein, the

profits of that permanent establishment shall not be determined

on the basis of the total amount received by the enterprise,

but shall be determined only on the basis of the remuneration

which is attributable to the actual activity of the permanent

establishment for such sales or business. Especially, in the

case of contracts for the survey, supply, installation or

construction of industrial, commercial or scientific equipment

or premises, or of public works, when the enterprise has a

permanent establishment, the profits of such permanent

establishment shall not be determined on the basis of the total

amount of the contract, but shall be determined only on the

the basis of that part of the contract which is effectively carried

out by the permanent establishment in the Contracting State

where the permanent establishment is situated.



With reference to Articles 10, 11 and 12:



In respect of Articles 10 (Dividends), 11 (Interest) and 12

(Royalties and fees for technical services), if under any

Convention, Agreement or Protocol between India and a third

State which is a member of the OECD, India limits its taxation

at source on dividends, interest, royalties or fees for

technical services to a rate lower or a scope more restricted


than the rate or the scope provided for in this Convention on the

said items of income, the same rate or scope as provided for in

that Convention, Agreement or Protocol on the said items of

income shall also apply during this Convention.



With reference to Article 25:



The taxation in India of permanent establishments of Swedish

companies, shall in no case differ more from the taxation of

similar Indian companies than is provided by the Indian law on

the date of signature of this Convention.



With reference to Article 27:



1. A Contracting State may allow representatives of the

competent authority of the other Contracting State to enter

the territory of the first-mentioned Contracting State to

interview individuals and examine records with the written

consent of the person concerned. The competent authority of

the second-mentioned Contracting State shall notify the

competent authority of the first-mentioned Contracting State

of the time and place of the meeting with the individuals

concerned.



2. At the request of the competent authority of one

Contracting State, the competent authority of the other

Contracting State may allow representatives of the competent

authority of the first-mentioned Contracting State to be

present at the appropriate part of a tax examination in the

second-mentioned Contracting State.



3. If the request referred to in paragraph 2 is acceded to,

the competent authority of the Contracting State conducting

the examination shall, as soon as possible, notify the

competent authority of the other Contracting State about the

time and place of the examination, the authority or official

designated to carry out the examination and the procedures

and conditions required by the first-mentioned Contracting

State for the conduct of the examination. All decisions with

respect to the conduct of the tax examination shall be made

by the Contracting State conducting the examination.



In witness whereof the undersigned being duly authorized

thereto have signed this Protocol.



Done in duplicate at New Delhi, this 24th day of June 1997, in

the Swedish, Hindi and English languages, all three texts being

equally authentic. In case of divergence between the texts the

The English text shall be the operative one.

Team (2013:373).



Annex 2 MEMORANDUM OF UNDERSTANDING BETWEEN THE COMPETENT AUTHORITY

OF SWEDEN AND THE COMPETENT AUTHORITY OF INDIA REGARDING

SUSPENSION OF COLLECTION OF TAXES DURING MUTUAL AGREEMENT

PROCEDURE



The Competent Authority of Sweden and the Competent Authority

of India;



Having regard to the hardship faced by the taxpayers during

the pendency of a Mutual Agreement Procedure, under Article

26 of the Convention between the Government of the Kingdom of

Sweden 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 and on capital, which

the was signed on 24th June 1997 (the "Convention");



Having determined and agreed that efficient processing of

Mutual Agreement Procedure ("MAP") cases will be facilitated

by suspending collection of any amounts of tax, including

also any related interest or penalties, for any taxable years

which are the subject of the MAP proceedings;



WHEREAS:



(A) The Competent Authorities have arranged and desired to

agree that with regard to amounts of taxes covered under

Article 2 of the Convention and potentially payable to the

The Government of Sweden, the Swedish Tax Authority will suspend

collection in accordance with this Memorandum; and



(B) The Competent Authorities have arranged and desired to

agree that with regard to amounts of taxes covered under

Article 2 of the Convention and potentially payable to the

Government of India, the Assessing Officer will suspend

collection in accordance with this Memorandum;



NOW THEREFORE, in consideration of the premises, covenants

and conditions herein contained and in implementing this

arrangement:



HAVE AGREED as follows:



(1) The tax authorities of India and Sweden shall retain the

right to demand security in appropriate cases, as deemed fit

and necessary to avoid prejudicing the interests of their

respective governments.



(2) In India, as security, a taxpayer shall provide an

irrevocable Bank Guarantee issued by any scheduled bank, or

by an Indian branch of a foreign bank approved by the Reserve

Bank of India to carry out banking business in India, as per

annexure "A" to this Memorandum.



(3) In Sweden, as security, a taxpayer shall, upon demand,

provide an irrevocable Bank Guarantee issued by a bank that

is authorized by the Swedish Financial Supervisory Authority

or any other form of security deemed adequate by the Swedish

Tax Authority.



(4) The amount, if any, for which security is demanded under

paragraph (2) or (3) above, as the case may be, shall not

exceed the amount of additional tax demanded by the tax

Authority requiring the security (aggregated for all the

period pending before the Competent Authorities), and, if

applicable, as adjusted by the Assessing Officer in

accordance with domestic laws, and subject to further

adjustment for interest on these amounts calculated at the

statutory rate on non-payments.



(5) the Collection of any interest or penalty levied from the

concerned taxpayer, in relation to amounts suspended from

collection under this Memorandum, shall also be suspended

subject to paragraph (4). For the avoidance of doubt,

interest, if appropriate, will continue to run while the

collection is suspended.



(6) The Competent Authorities shall endeavour to either

resolve or close the case within a period of two years from

the date on which one Competent Authority notifies the other

that the application from the Taxpayer (s) for assistance

during the MAP has been received.



(7) The maximum period for which collection can be suspended

under this Memorandum shall be two years unless extended by

mutual consent by both the Competent Authorities. However, in

no case shall the aggregate period for which collection is

suspended exceed five years.



(8) Any draw-down upon a Bank Guarantee referred to in

paragraph (2) or (3) above will be done only after

notification by one Competent Authority to the other about

the completion of the Mutual Agreement Procedure, or of the

time limit under paragraph (7), whichever earlier.



(9) In the event of a lapse of security under paragraph (2)

or (3), the taxpayer shall be permitted to substitute another

form of security under such paragraph, provided such

substitution takes effect not less than 30 days prior to the

lapse of the prior security. Such substitution will relieve

the bank, which provided the first Bank Guarantee from its

bond to the concerned Government of India or Singapore

During that first security.



(10) The terms of this Memorandum may be reviewed by the

Competent Authorities at anytime in the future upon the

request of either party.



(11) This Agreement shall enter into force on the thirtieth

day after the notification in writing by the Competent

Authority of Thailand to the Competent Authority of India of

the completion of the procedures required by its law for the

entry into force of this Agreement.



Dated at Stockholm, 7 February 2013



For the Competent Authority of Sweden



Ingela Willfors



For the Competent Authority of India



Sanjay Kumar Mishra



(Translation)



AGREEMENT OF THE COMPETENT AUTHORITY IN THE UNITED KINGDOM AND

THE COMPETENT AUTHORITY IN INDIA FOR DEFERMENT OF PAYMENT OF

TAXES DURING THE ONGOING PROCEDURE FOR THE EXCHANGE OF

AGREEMENT



The competent authority of Sweden and the competent

authority of India,



Considering the difficulties faced by taxpayers in

pending mutual agreement procedure pursuant to

Article 26 of the agreement between the Government of the Kingdom of Sweden

and the Government of India for the avoidance of

double taxation and the prevention of fiscal evasion with respect to

taxes on income and on capital, signed on 24

June 1997 (the "agreement"),



Who have agreed that an efficient handling of cases

According to the mutual agreement procedure, promoted by the

that deferment is permitted with payment of the amount of tax, in that the

including interest or penalty relating to

tax year that is the subject of a procedure for the

mutual agreement,



IN THE TO:



A. the competent authorities are required to agree to

The Swedish tax authority, under this agreement, to grant

deferment of payment of such tax amount

Article 2 of the agreement and payable in Sweden, and



B. the competent authorities are required to agree to the

Assessing Officer, under this agreement, to grant

deferment of payment of such tax amount

Article 2 of the agreement and payable in India,



HAS, with regard to the rates, terms and conditions

arising out of this agreement, as well as through

the implementation of this,



Agreed as follows:



1. The tax authorities of India and Sweden has left right

to request security in cases where such is deemed necessary

in order to avoid the public interests in each State

damaged.



2. In India, the taxable person must give security, in accordance

with Annex "A" to this agreement, in the form of a

irrevocable bank guarantee issued by a registered bank

or by a foreign bank's Indian branch, which of the

The Reserve Bank of India authorized to conduct banking business in

India.



3. In Sweden, the taxable person must, on request, provide

security in the form of an irrevocable bank guarantee issued by the

a bank that does business with the State of

The Swedish financial supervisory authority, or such other form of security


The Swedish tax authority considers appropriate.



4. any amount in respect of which security is requested under paragraph 2

and (3) above, shall not exceed the tax (total

calculated for all fiscal periods that are subject to

ongoing procedure of mutual agreement between the

competent authorities) levied by the tax authority

requesting safety and, where appropriate, such as this

tax has been adjusted by the Assessing Officer, according to the internal

law and subject to any further adjustment for

statutory interest for non-payment.



5. Payment shall-with the limitations

paragraph 4 – also allowed for interest or penalty

imposed the concerned taxable and which relates to the amount

for which deferment has been granted pursuant to this agreement. For

to avoid doubt, where applicable, interest

be calculated during the period for which deferment of payment

granted.



6. the competent authorities shall seek to resolve or end

matter within two years from the day on which a competent authority

notifies the other that it has received an application for

mutual agreement from the taxpayer.



7. Deferment under this arrangement may be granted for a maximum of two

years, unless the competent authorities agree

that the moratorium should be extended. The total time period for

the deferment may be granted, shall in no case, however,

exceed five years.



8. Bank guarantee referred to in paragraph 2 or 3 above may be

be called after one competent authority

informed the others that mutual

agreement is completed, or that the time period

set out in point 7 expired, whichever occurs

first.



9. In the event that the security referred to in paragraph 2 or 3

expires, the taxpayer may replace this with other

security in accordance with one of these items, unless this

occurs no later than 30 days before the previous safety stops.

When such substitution is freed the bank exhibited

former bank guarantee from their obligations under the

the warranty vis-à-vis relevant authority in India or Sweden.



10. the provisions of this agreement may, at the request of

either party may at any time be subject to review by the

competent authorities.



11. This agreement shall enter into force on the thirtieth day

After the date on which the competent authority of Sweden

the competent authority in writing in India about

to the constitutional measures necessary to

the agreement shall come into force has been made.



Stockholm, 7 February 2013



For the competent authority of Sweden



Ingela Willfors



For the competent authority in India



Sanjay Kumar Mishra

Team (2013:373).

Related Laws