31. pants

DARBĪBAS IZBEIGŠANA

Šis Līgums ir spēkā uz nenoteiktu laiku, kamēr Līgumslēdzēja

Valsts tā darbību izbeidz. Katra Līgumslēdzēja Valsts var izbeigt

Līguma darbību, paejot piecu gadu periodam pēc Līguma spēkā

stāšanās datuma, pa diplomātiskajiem kanāliem iesniedzot

paziņojumu par izbeigšanu vismaz sešus mēnešus pirms jebkura

kalendārā gada beigām. Šajā gadījumā Līguma darbība abās

Līgumslēdzējās Valstīs tiek izbeigta:

a) Indijā, attiecībā uz ienākumu, kas gūts aprīļa pirmajā

dienā vai pēc tās jebkurā taksācijas gadā, kas seko kalendārajam

gadam, kurā iesniegts paziņojums;

b) Latvijā:

(i) attiecībā uz nodokļiem, ko ietur ienākuma izmaksas brīdī

-ienākumam, kas gūts janvāra pirmajā dienā vai pēc tās

kalendārajā gadā, kas seko gadam, kurā iesniegts paziņojums;

(ii) attiecībā uz pārējiem ienākuma nodokļiem - nodokļiem, kas

maksājami par jebkuru taksācijas gadu, kas sākas janvāra pirmajā

dienā vai pēc tās kalendārajā gadā, kas seko gadam, kurā

iesniegts paziņojums.

To apliecinot, būdami pienācīgi pilnvaroti, šo Līgumu ir

parakstījuši.

Sastādīts Deli divos eksemplāros 2013.gada 18.septembrī, katrs

latviešu, hindi un angļu valodā, turklāt visi teksti ir vienlīdz

autentiski. Atšķirīgas interpretācijas gadījumā noteicošais ir

teksts angļu valodā.

Latvijas Republikas

valdības vārdā

Edgars Rinkēvičs

Ārlietu ministrs

Indijas Republikas

valdības vārdā

V.E. Salman Kuršid

Ārlietu ministrs

Protokols

Parakstot Latvijas Republikas valdības un Indijas Republikas

valdības līgumu par nodokļu dubultās uzlikšanas un nodokļu

nemaksāšanas novēršanu attiecībā uz ienākuma nodokļiem (turpmāk

minēts kā "Līgums"), puses, nolūkā skaidrot Līguma

piemērošanu, ir vienojušās par sekojošiem noteikumiem.

1. Attiecībā uz 5.pantu:

Tiek saprasts, ka šī Līguma parakstīšanas datumā neviens no

Latvijas noslēgtajiem līgumiem par nodokļu dubultās uzlikšanas

novēršanu neparedz īpašu noteikumu, kura izpratnē Līgumslēdzējas

Valsts apdrošināšanas uzņēmumam ir pastāvīgā pārstāvniecība otrā

Līgumslēdzējā Valstī, ja otras valsts teritorijā atkarīgie aģenti

tā vārdā iekasē prēmijas vai apdrošina riskus.

Tomēr, ja pēc šī datuma šāds īpašs noteikums tiek ietverts

jebkurā no Latvijas noslēgtajiem līgumiem par nodokļu dubultās

uzlikšanas novēršanu, tad pēc abu valstu kompetento iestāžu

konsultācijām ir arī jāapsver šāda noteikuma ietveršanu šajā

Līgumā.

2. Attiecībā uz 5.panta 4.daļu:

Tiek saprasts, ka 5.panta 4.daļas noteikumi ir paredzēti, lai

vienas Līgumslēdzējas Valsts uzņēmumam netiktu uzlikti nodokļi

otrā valstī, ja tas šajā otrajā valstī veic darbības, kam ir

sagatavošanas vai palīgdarbības raksturs.

3. Attiecībā uz 5.panta 3.daļu:

Tiek saprasts, ka 5.panta 3.daļā minētā uzraudzības darbība un

pakalpojumi neietver 12.panta 3.daļas b) punktā minēto darbību un

pakalpojumus.

Sastādīts Deli divos eksemplāros 2013.gada 18.septembrī, katrs

latviešu, hindi un angļu valodā, turklāt visi teksti ir vienlīdz

autentiski. Atšķirīgas interpretācijas gadījumā noteicošais ir

teksts angļu valodā.

Latvijas Republikas

valdības vārdā

Edgars Rinkēvičs

Ārlietu ministrs

Indijas Republikas

valdības vārdā

V.E. Salman Kuršid

Ārlietu ministrs

AGREEMENT

BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF LATVIA

AND THE GOVERNMENT OF THE REPUBLIC OF INDIA

FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL

EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the Republic of Latvia and the Government of

the Republic of India,

desiring to conclude an Agreement for the avoidance of double

taxation and the prevention of fiscal evasion with respect to

taxes on income and with a view to promoting economic cooperation

between the two countries,

have agreed as follows:

Article 1

PERSONS COVERED

This Agreement shall apply to persons who are residents of one

or both of the Contracting States.

Article 2

TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on

behalf of a Contracting State or of its political subdivisions or

local authorities, irrespective of the manner in which they are

levied.

2. There shall be regarded as taxes on income all taxes

imposed on total income, or on elements of income, including

taxes on gains from the alienation of movable or immovable

property.

3. The existing taxes to which the Agreement shall apply are

in particular:

a) in India, the income tax, including any surcharge

thereon;

(hereinafter referred to as "Indian tax");

b) in Latvia:

(i) the enterprise income tax (uznemumu ienakuma

nodoklis);

(ii) the personal income tax (iedzivotaju ienakuma

nodoklis);

(hereinafter referred to as "Latvian tax").

4. The Agreement shall apply also to any identical or

substantially similar taxes that are imposed after the date of

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

existing taxes. The competent authorities of the Contracting

States shall notify each other of any significant changes that

have been made in their respective taxation laws.

Article 3

GENERAL DEFINITIONS

1. For the purposes of this Agreement, 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 U.N. Convention on

the Law of the Sea;

b) the term "Latvia" means the Republic of Latvia

and, when used in the geographical sense, means the territory of

the Republic of Latvia and any other area adjacent to the

territorial waters of the Republic of Latvia within which under

the laws of Latvia and in accordance with international law, the

rights of Latvia may be exercised with respect to the sea bed and

its sub-soil and their natural resources;

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

other Contracting State" mean the Republic of Latvia or the

Republic of India, as the context requires;

d) the term "person" includes an individual, a

company, a body of persons and any other entity which is treated

as a taxable unit under the taxation laws in force in the

respective Contracting State;

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

any entity that 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 "competent authority" means:

(i) in India, the Finance Minister, Government of India, or

his authorised representative;

(ii) in Latvia, the Ministry of Finance or its authorised

representative;

i) the term "national" means:

(i) any individual possessing the nationality of a Contracting

State;

(ii) any legal person, partnership or association deriving its

status as such from the laws in force in a Contracting State;

j) the term "tax" means Latvian or Indian 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 Agreement applies or which represents a

penalty or fine imposed relating to those taxes;

k) The term "fiscal year" means:

(i) in India, the financial year beginning on the first day of

April;

(ii) in Latvia, the taxation period beginning on or after the

first day of January.

2. As regards the application of the Agreement at any time by

a Contracting State, any term not defined therein shall, unless

the context otherwise requires, have the meaning that it has at

that time under the law of that State for the purposes of the

taxes to which the Agreement applies, any meaning under the

applicable tax laws of that State prevailing over a meaning given

to the term under other laws of that State.

Article 4

RESIDENT

1. For the purposes of this Agreement, 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, place of incorporation

or any other criterion of a similar nature, and also includes

that State and any political subdivision or local authority

thereof. This term, however, does not include any person who is

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

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

deemed to be a resident only of the State with which his personal

and economic relations are closer (centre of vital

interests);

b) if the State in which he has his centre of vital interests

cannot be determined, or if he has not a permanent home available

to him in either State, he shall be deemed to be a resident only

of the State in which he has an habitual abode;

c) if he has an habitual abode in both States or in 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

endeavour to 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, the competent authorities of the Contracting States shall

endeavour to settle the question by mutual agreement having

regard to the person's place of effective management, the place

where it is incorporated and any other relevant factors. In the

absence of such agreement, such person shall not be considered to

be a resident of either Contracting State for the purposes of

enjoying benefits under the Agreement.

Article 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term

"permanent establishment" means a fixed place of

business through which the business of an enterprise is wholly or

partly carried on.

2. The term "permanent establishment" includes

especially:

a) a place of management;

b) a branch;

c) an office;

d) a factory;

e) a workshop;

f) a sales outlet;

g) a warehouse in relation to a person providing storage

facilities for others;

h) a farm, plantation or other place where agricultural,

forestry, plantation or related activities are carried on;

and

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

extraction of natural resources.

3. The term "permanent establishment" shall also

include:

а) а building site or construction, installation or assembly

project, or supervisory activity connected therewith, but only if

such site, project or activity lasts more than nine months;

b) the furnishing of services, including consultancy services,

by an enterprise of a Contracting State through its employees or

other personnel engaged by the enterprise for such purpose, but

only where such activities continue (for the same or a connected

project) in the other Contracting State for a period or periods

exceeding in the aggregate six months in any twelve month

period;

c) activities carried on offshore in a Contracting State in

connection with the exploration or exploitation of the sea bed

and sub-soil and their natural resources, but only if such

activities are carried on for a period or periods exceeding in

the aggregate 30 days in any twelve month period.

4. Notwithstanding the preceding 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.

5. Notwithstanding the provisions of paragraphs 1 and 2, where

a person - other than an agent of an independent status to whom

paragraph 6 applies - is acting in a Contracting State on behalf

of an enterprise of the other Contracting State, that enterprise

shall be deemed to have a permanent establishment in the first -

mentioned Contracting State in respect of any activities which

that person undertakes for 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 4 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

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 secures orders in the first-mentioned State,

wholly or almost wholly for the enterprise itself.

6. An enterprise shall not be deemed to have a permanent

establishment in a Contracting State merely because it 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, where the activities of such an agent are devoted wholly

or almost wholly on behalf of that enterprise, and where the

conditions between the agent and the enterprise differ from those

which would be made between independent persons, such agent shall

not be considered an agent of an independent status within the

meaning of this paragraph. In such case, provisions of paragraph

5 shall apply.

7. The fact that a company which is a resident of a

Contracting State controls or is controlled by a company which is

a resident of the other Contracting State, or which 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 include rights in connection with immovable property,

property accessory to immovable property, livestock and equipment

used in agriculture and forestry, rights to which the provisions

of general law respecting landed property apply, 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 natural resources, rights to assets

to be produced by the exploration or exploitation of the sea bed

and sub-soil and their natural resources, including rights to

interests in or to the benefit of such assets; ships, boats and

aircraft shall not be regarded as 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

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 provisions of and

subject to the limitations of the tax laws of that State.

However, no such deduction shall be allowed in respect of

amounts, if any, paid (otherwise than towards reimbursement of

actual expenses) by the permanent establishment to the head

office of the enterprise or any of its other offices, by way of

royalties, fees or other similar payments in return for the use

of patents, know-how or other rights, or by way of commission or

other charges for specific services performed or for management,

or, except in the case of a banking enterprise, by way of

interest on moneys lent to the permanent establishment. Likewise,

no account shall be taken, in the determination of the profits of

a permanent establishment for amounts charged (otherwise than

towards reimbursement of actual expenses), by the permanent

establishment to the head office of the enterprise or any of its

other offices, by way of royalties, fees or other similar

payments in return for the use of patents, know-how or other

rights, or by way of commission or other charges for specific

services performed or for management, or, except in the case of a

banking enterprise, by way of interest on moneys lent to the head

office of the enterprise or any of its other offices.

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 Agreement, then the

provisions of those Articles shall not be affected by the

provisions of this Article.

Article 8

SHIPPING AND AIR TRANSPORT

1. Profits derived by 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 of an enterprise of a Contracting State described

in paragraph 1 from the use, maintenance, or rental of containers

(including trailers, barges and related equipment for the

transport of containers) used for the transport of goods or

merchandise in international traffic shall be taxable only in

that State.

3. For the purposes of this Article interest on investments

which are made in a Contracting State as integral part of

carrying on the business of operation of ships or aircraft in

international traffic shall be regarded as profits derived from

the operation of such ships or aircraft, and the provisions of

Article 11 shall not apply in relation to such interest.

4. The provisions of paragraphs 1, 2 and 3 shall also apply to

profits from the participation in a pool, a joint business or an

international operating agency.

Article 9

ASSOCIATED ENTERPRISES

1. Where

a) an enterprise of a Contracting State 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

two enterprises in their commercial or financial relations which

differ from those which would be made between independent

enterprises, then any profits which would, but for those

conditions, have accrued to one of the enterprises, but, by

reason of those conditions, have not so accrued, may be included

in the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of an

enterprise of that State - and taxes accordingly - profits on

which an enterprise of the other Contracting State has been

charged to tax in that other State and the profits so included

are profits which would have accrued to the enterprise of the

first-mentioned State if the conditions made between the two

enterprises had been those which would have been made between

independent enterprises, then that other State shall make an

appropriate adjustment to the amount of the tax charged therein

on those profits. In determining such adjustment, due regard

shall be had to the other provisions of this Agreement and the

competent authorities of the Contracting States shall if

necessary consult each other.

Article 10

DIVIDENDS

1. Dividends paid by a company which is a resident of a

Contracting State to a resident of the other Contracting State

may be taxed in that other State.

2. However, such dividends may also be taxed in the

Contracting State of which the company paying the dividends is a

resident and according to the 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 which is subject to

the same taxation treatment as income from shares by the laws of

the State of which the company making the distribution is a

resident.

4. The 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 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

State provided it is derived and beneficially owned by:

a) the Government, a political subdivision or a local

authority of the other Contracting State; or

b) (i) in the case of India, the Reserve Bank of India, the

Export-Import Bank of India and the National Housing Bank; or

(ii) in the case of Latvia, the Bank of Latvia, the Mortgage

and Land Bank of Latvia and the Latvian Guarantee Agency; or

c) any other similar institution as may be agreed upon from

time to time between the competent authorities of the Contracting

States through exchange of letters; or

d) a resident of India, if the interest is paid in respect of

a loan made, guaranteed or insured or a credit extended,

guaranteed or insured by the Government, a political subdivision

or a local authority of India or by any of the bodies mentioned

in sub-paragraph b) (i) or c); or

e) a resident of Latvia, if the interest is paid in respect of

a loan made, guaranteed or insured or a credit extended,

guaranteed or insured by the Government or a local authority of

Latvia or by any of the bodies mentioned in sub-paragraph b) (ii)

or c).

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. The term "interest" shall not include any

income which is treated as a dividend under the provisions of

Article 10. 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 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

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 Agreement.

Article 12

ROYALTIES AND FEES FOR TECHNICAL SERVICES

1. Royalties or 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. However, such royalties or fees for technical services may

also be taxed in the Contracting State in which they arise and

according to the laws of that State, but if the beneficial owner

of the royalties or fees for technical services is a resident of

the other Contracting State, 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 and films or

tapes used for television or radio broadcasting, any patent,

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

for the use of, or the right to use, industrial, commercial or

scientific equipment, or for information concerning industrial,

commercial or scientific experience.

b) The term "fees for technical services" as used in

this Article means payments of any kind, other than those

mentioned in Articles 14 and 15 of this Agreement as

consideration for managerial or technical or consultancy

services, including the provision of services of technical or

other personnel.

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. a) 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.

b) Where under sub-paragraph a) royalties or fees for

technical services do not arise in one of the Contracting States,

and the royalties relate to the use of, or the right to use, the

right or property, or the fees for technical services relate to

services performed, in one of the Contracting States, the

royalties or fees for technical services shall be deemed to arise

in that Contracting State.

6. Where, by reason of a special relationship between the

payer and the beneficial owner or between both of them and some

other person, the amount of the 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 Agreement.

Article 13

INCOME OR GAINS ON ALIENATION OF PROPERTY

1. Income or 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 the alienation of movable property forming part

of the business property of a permanent establishment which an

enterprise of a Contracting State has in the other Contracting

State or of movable property pertaining to a fixed base available

to a resident of a Contracting State in the other Contracting

State for the purpose of performing independent personal

services, including such gains from the alienation of such a

permanent establishment (alone or with the whole enterprise) or

of such fixed base, may be taxed in that other State.

3. Gains derived by an enterprise of a Contracting State

operating ships or aircraft in international traffic from the

alienation of ships or aircraft operated in international

traffic, or movable property pertaining to the operation of such

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

4. Gains from the alienation of shares 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 alienation of shares other than those mentioned

in paragraph 4 in a company which is a resident of a Contracting

State may be taxed in that State.

6. Gains from the alienation of any property other than that

referred to in paragraphs 1, 2, 3, 4 and 5, shall be taxable only

in the Contracting State of which the alienator is a

resident.

Article 14

INDEPENDENT PERSONAL SERVICES

1. Income derived by an individual who is a resident of a

Contracting State in respect of professional services or other

activities of an independent character shall be taxable only in

that State unless he has a fixed base regularly available to him

in the other Contracting State for the purpose of performing his

activities. If he has such a fixed base, the income may be taxed

in the other State but only so much of it as is attributable to

that fixed base. For this purpose, where an individual who is a

resident of a Contracting State stays in the other Contracting

State for a period or periods exceeding in the aggregate 183 days

in any twelve month period commencing or ending in the fiscal

year concerned, he shall be deemed to have a fixed base regularly

available to him in that other State and the income that is

derived from his activities referred to above that are performed

in that other State shall be attributable to that fixed base.

2. The term "professional services" includes

especially independent scientific, literary, artistic,

educational or teaching activities as well as the independent

activities of physicians, lawyers, engineers, architects,

dentists and accountants.

Article 15

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19, 20 and

21, salaries, wages and other similar remuneration derived by a

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

periods 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

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.

Article 16

DIRECTORS' FEES

Directors' fees and other similar payments derived by a

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

the board of directors or any other similar organ of a company

which is a resident of the other Contracting State may be taxed

in that other State.

Article 17

ARTISTES AND SPORTSPERSONS

1. Notwithstanding the provisions of Articles 14 and 15,

income derived by a resident of a Contracting State as an

entertainer, such as a theatre, motion picture, radio or

television artiste, or a musician, or as a sportsperson, from his

personal activities as such exercised in the other Contracting

State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by

an entertainer or a sportsperson in his capacity as such accrues

not to the entertainer 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 entertainer 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

entertainers or sportspersons if the activities are substantially

supported by public funds of one or both of the Contracting

States or of political subdivisions or local authorities thereof.

In such case, the income shall be taxable only in the Contracting

State of which the entertainer or sportsperson is a resident.

Article 18

PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19,

pensions and other similar remuneration paid to a resident of a

Contracting State in consideration of past employment shall be

taxable only in that State.

2. Notwithstanding the provisions of paragraph 1 of this

Article and paragraph 2 of Article 19, pensions and other similar

remuneration paid under the social security legislation of a

Contracting State shall be taxable only in that State.

Article 19

GOVERNMENT SERVICE

1. a) Salaries, wages and other similar remuneration, other

than a pension, paid by a Contracting State or a political

subdivision or a local authority thereof to an individual in

respect of services rendered to that State or subdivision or

authority shall be taxable only in that State.

b) However, such salaries, wages and other similar

remuneration shall be taxable only in the other Contracting State

if the services are rendered in that State and the individual is

a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely 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, 17, and 18 shall apply

to salaries, wages and other similar 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

PROFESSORS, TEACHERS AND RESEARCH SCHOLARS

1. An individual who visits a Contracting State for the

purpose of teaching or carrying out research at a university,

college or other recognized educational institutions in that

Contracting State and who is or was immediately before that visit

a resident of the other Contracting State, shall be exempted from

taxation in the first-mentioned Contracting State on remuneration

for such teaching or research for a period not exceeding two

years from the date of his first visit for that purpose.

2. The provisions of paragraph 1 of this Article shall not

apply to income from research if such research is undertaken not

in the public interest, but primarily for the private benefit of

a specific person or persons.

Article 21

STUDENTS

1. Payments which a student, an apprentice or a trainee who is

or was immediately before visiting a Contracting State a resident

of the other Contracting State and who is present in the

first-mentioned State solely for the purpose of his education or

training, receives for the purpose of his maintenance, education

or training shall not be taxed in that State, provided that such

payments arise from sources outside that State.

2. Notwithstanding the provisions of Article 15, remuneration

which a student, or an apprentice or trainee who is or was,

immediately before visiting a Contracting State, a resident of

the other Contracting State and who is present in the

first-mentioned State solely for the purpose of his education or

training, receives for dependent personal services rendered in

that first-mentioned State shall not be taxable in that State,

provided that such services are directly related, and incidental,

to his education or training or the remuneration for those

services is necessary to supplement the resources for his

maintenance. However, in any case the benefits of this paragraph

shall not be granted for a period of more than five consecutive

years from the date of his first arrival in the first-mentioned

State.

Article 22

OTHER INCOME

1. Items of income of a resident of a Contracting State,

wherever arising, not dealt with in the foregoing Articles of

this Agreement 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

resident of a Contracting State derives income from sources

within the other Contracting State in form of winnings from

lotteries, crossword puzzles, races including horse races, card

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

nature whatsoever, such income may be taxed in the other

Contracting State.

Article 23

METHODS FOR ELIMINATION OF DOUBLE TAXATION

Double taxation shall be eliminated as follows:

1. In India:

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

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

Latvia, India shall allow as a deduction from the tax on the

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

Latvia.

Such deduction shall not, however, exceed that portion of the

tax as computed before the deduction is given, which is

attributable, as the case may be, to the income which may be

taxed in Latvia.

b) Where in accordance with any provision of the Agreement

income derived by a resident of India is exempt from tax in

India, India may nevertheless, in calculating the amount of tax

on the remaining income of such resident, take into account the

exempted income.

2. In Latvia:

a) Where a resident of Latvia derives income which, in

accordance with the provisions of this Agreement, has been taxed

in India, Latvia shall, subject to the provisions of

sub-paragraphs b) and c), exempt such income from tax.

b) Where a resident of Latvia derives income which in

accordance with the provisions of paragraph 2 of Articles 10, 11

and 12 may be taxed in India, Latvia shall allow as a deduction

from the tax on the income of that resident an amount equal to

the tax paid in India. Such deduction shall not, however, exceed

the part of the tax, as computed before the deduction is given,

which is attributable to the income which may be taxed in

India.

c) Where in accordance with any provision of the Agreement

income derived by a resident of Latvia is exempt from tax in

Latvia, Latvia may nevertheless, in calculating the amount of tax

on the remaining income of such resident, take into account the

exempted income.

Article 24

NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in

the other Contracting State to any taxation or any requirement

connected therewith, which is other or more burdensome than the

taxation and connected requirements to which nationals of that

other State in the same circumstances, in particular with respect

to residence, 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. Stateless persons who are residents of a Contracting State

shall not be subjected in either Contracting State to any

taxation or any requirement connected therewith, which is other

or more burdensome than the taxation and connected requirements

to which nationals of the State concerned in the same

circumstances, in particular with respect to residence, are or

may be subjected.

3. The taxation on a permanent establishment which an

enterprise of a Contracting State has in the other Contracting

State shall not be less favourably levied in that other State

than the taxation levied on enterprises of 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

and reductions for taxation purposes on account of civil status

or family responsibilities which it grants to its own residents.

This provision shall not be construed as preventing a Contracting

State from charging the profits of a permanent establishment

which a company of the other Contracting State has in the first

mentioned State at a rate of tax which is higher than that

imposed on the profits of a similar company of the first

mentioned Contracting State, nor as being in conflict with the

provisions of paragraph 3 of Article 7. However, the difference

in tax rate shall not exceed 10 percentage points.

4. Except where the provisions of paragraph 1 of Article 9,

paragraph 7 of Article 11, or paragraph 6 of Article 12, apply,

interest, royalties, fees for technical services 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.

5. Enterprises of a Contracting State, the capital of which is

wholly or partly owned or controlled, directly or indirectly, by

one or more residents of the other Contracting State, shall not

be subjected in the first-mentioned State to any taxation or any

requirement connected therewith which is other or more burdensome

than the taxation and connected requirements to which other

similar enterprises of the first-mentioned State are or may be

subjected.

6. The provisions of this Article shall, notwithstanding the

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

description.

Article 25

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 Agreement, 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 24, to that of the Contracting State

of which he is a national. The case must be presented within

three years from the first notification of the action resulting

in taxation not in accordance with the provisions of the

Agreement.

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 Agreement. Any agreement reached shall be

implemented notwithstanding any time limits in the domestic law

of the Contracting States.

3. The competent authorities of the Contracting States shall

endeavour to resolve by mutual agreement any difficulties or

doubts arising as to the interpretation or application of the

Agreement. They may also consult together for the elimination of

double taxation in cases not provided for in the Agreement.

4. The competent authorities of the Contracting States 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 opinions, such exchange may take place through a

commission consisting of representatives of the competent

authorities of the Contracting States.

Article 26

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall

exchange such information ("information" includes documents or

certified copies of the documents) as is necessary for carrying

out the provisions of this Agreement or of the domestic laws

concerning taxes of every kind and description imposed on behalf

of the Contracting States, or of their political subdivisions or

local authorities, insofar as the taxation thereunder is not

contrary to the Agreement. The exchange of information is not

restricted by Articles 1 and 2. Any information received by a

Contracting State shall be treated as secret in the same manner

as information obtained under the domestic laws of that State and

shall be disclosed only to persons or authorities (including

courts and administrative bodies) concerned with the assessment

or collection of, the enforcement or prosecution in respect of,

or the determination of appeals in relation to the taxes referred

to in the first sentence. 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.

2. In no case shall the provisions of paragraph 1 be construed

so as to impose on a Contracting State the obligation:

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).

3. 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

2 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.

4. In no case shall the provisions of paragraph 2 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 27

ASSISTANCE IN COLLECTION

1. The Contracting States undertake to lend assistance to each

other in the collection of the taxes owed by a taxpayer to the

extent that the amount thereof has been finally determined

according to the laws of the Contracting State making the request

for assistance.

2. In the case of a request by a Contracting State for the

collection of taxes which has been accepted for collection by the

other Contracting State, such taxes shall be collected by that

other State in accordance with the laws applicable to the

collection of its own taxes and as if the taxes to be so

collected were its own taxes.

3. Any request for collection by a Contracting State shall be

accompanied by such certificate as is required by the laws of

that State to establish that the taxes owed by the taxpayer have

been finally determined.

4. Where the tax claim of a Contracting State has not been

finally determined by reason of it being subject to appeal or

other proceeding, that State may, in order to protect its

revenues, request the other Contracting State to take such

interim measures for conservancy on its behalf as are available

to the other State under the laws of that other State. If such

request is accepted by the other State, such interim measures

shall be taken by it as if the taxes owed to the first-mentioned

State were the own taxes of that other State.

5. A request under the preceding paragraphs of this Article

shall only be made by a Contracting State to the extent that

sufficient property of the taxpayer owing the taxes is not

available in that State for recovery of the taxes owed.

6. The Contracting State in which tax is recovered in

accordance with the provisions of this Article shall forthwith

remit to the Contracting State on behalf of which the tax was

collected the amount so recovered minus, where appropriate, the

amount of extraordinary costs referred to in subparagraph b) of

paragraph 7.

7. It is understood that unless otherwise agreed by the

competent authorities of both Contracting States:

a) ordinary costs incurred by a Contracting State in providing

assistance shall be borne by that State;

b) extraordinary costs incurred by a Contracting State in

providing assistance shall be borne by the other State and shall

be payable regardless of the amount collected on behalf of the

other State.

As soon as a Contracting State anticipates that extraordinary

costs may be incurred, it shall so advise the other Contracting

State and indicate the estimated amount of such costs.

8. In this Article, the term "taxes" means taxes to

which the paragraph 1 of Article 26 applies and includes any

interest and penalties relating thereto.

9. In no case shall the provisions of this Article be

construed so as to impose on a Contracting State the

obligation:

a) to carry out administrative measures at variance with the

laws and administrative practice of that or of the other

Contracting State;

b) to carry out measures which would be contrary to public

policy (ordre public);

c) to provide assistance if the other Contracting State has

not pursued all reasonable measures of collection or conservancy,

as the case may be, available under its laws or administrative

practice;

d) to provide assistance in those cases where the

administrative burden for that State is clearly disproportionate

to the benefit to be derived by the other Contracting State.

Article 28

Limitation of

Benefits

1. The competent authorities upon their mutual agreement, may

deny the benefits of this Agreement to a resident of a

Contracting State, or with respect to any transaction undertaken

by such a resident, if in their opinion the main purpose of the

creation or existence of such a resident or of the transaction

undertaken by him, was to obtain the benefits under this

Agreement that would not otherwise be available.

2. The competent authorities of the Contracting States may

consult together with a view to develop a commonly agreed

application of the provisions of this Article.

Article 29

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges

of members of diplomatic missions or 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, of the completion of the procedures

required by the respective laws for the entry into force of this

Agreement.

2. This Agreement shall enter into force on the date of the

later of the notifications referred to in paragraph 1 of this

Article.

3. The provisions of this Agreement shall have effect:

a) in India, in respect of income derived in any fiscal year

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

calendar year in which the Agreement enters into force;

b) in Latvia:

(i) in respect of taxes withheld at source, on income derived

on after the first day of January in the calendar year next

following the year in which the notice has been given;

(ii) in respect of other taxes on income for taxes chargeable

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

January in the calendar year next following the year in which the

notice has been given.

Article 31

TERMINATION

This Agreement shall remain in force indefinitely until

terminated by a Contracting State. Either Contracting State may

terminate the Agreement, through diplomatic channels, by giving

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

calendar year beginning after the expiration of five years from

the date of entry into force of the Agreement. In such event, the

Agreement shall cease to have effect:

a) in India, in respect of income derived in any fiscal year

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

year in which the notice is given;

b) in Latvia:

(i) in respect of taxes withheld at source, on income derived

on or after the first day of January in the calendar year next

following the year in which the notice has been given;

(ii) in respect of other taxes on income for taxes chargeable

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

January in the calendar year next following the year in which the

notice has been given.

In witness whereof, the undersigned, duly authorised thereto,

have signed this Agreement.

Done in duplicate at Delhi this eighteen day of September

2013, each in the Latvian, Hindi and English languages, all texts

being equally authentic. In the case of divergence of

interpretation, the English text shall prevail.

For the Government of

the Republic of Latvia

Edgars Rinkēvičs

Minister of Foreign

Affairs

For the Government of

the Republic of India

H.E. Salman Khurshid

Minister of Foreign

Affairs

AGREED NOTE

At the signing of the Agreement between the Government of the

Republic of Latvia and the Government of the Republic of India

for the avoidance of double taxation and the prevention of fiscal

evasion with respect to taxes on income (hereinafter referred to

as "the Agreement") the undersigned have agreed upon

the following provisions with purpose to clarify the application

of the Agreement.

1. With reference to Article 5:

It is understood that on the date of signature of this

Agreement none of the agreements for the avoidance of double

taxation concluded by Latvia provide for special provision

deeming an insurance enterprise of a Contracting State to have a

permanent establishment in the other Contracting State if it

collects premiums or insures risks in the territory of that other

State through a dependent agent.

However, if after that date, such special provision is

included in any agreement for the avoidance of double taxation

concluded by Latvia, then, after consultations between the

competent authorities of the both States, such provision shall

also be considered for this Agreement.

2. With reference to paragraph 4 of Article 5:

It is understood that the provisions of paragraph 4 of Article

5 are designed to prevent an enterprise of one Contracting State

from being taxed in the other State, if it carries on in that

other State, activities of a purely preparatory or auxiliary

character.

3. With reference to paragraph 3 of Article 5:

It is understood that the supervisory activities or services

referred to in paragraph 3 of Article 5 does not include

activities or services covered under sub-paragraph b) of

paragraph 3 of Article 12.

Done in duplicate at Delhi this eighteen day of September

2013, each in the Latvian, Hindi and English languages, all texts

being equally authentic. In the case of divergence of

interpretation, the English text shall prevail.

For the Government of

the Republic of Latvia

Edgars Rinkēvičs

Minister of Foreign

Affairs

For the Government of

the Republic of India

H.E. Salman Khurshid

Minister of Foreign

Affairs