Notification No. 24/2015

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TORE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAOGRD INARY,
PART - 0, SECTION 3, SUB-SECTION {ii)|
GOVERNMENT OF INDIA
MISINSTRY OF FINANCE
(DEPARTEMNT OF REVENUE)
NOTIFICATION
| Fhe.
New Delhi, the March, 2015
SO. (E).—- Whereas, an Agreement ond Protocol (hereinafter retered we as the said
Agreement and the Praveohy as. sel out in the Annexure io this ootdication; was entered inta between the Government of the Republic of India and the Government of the Republicof Croatia for the avoidance uf double taxation and for the prevention of fiseal evasion with respect to
Taxes on income that was signed on the i" February, 204;
2. And whereas, the date of entry into foree of the said Agreementand Pretocal is the 6"
February, 2065; being the date thirty days after the date‘ of the later of the notifications of completion of. the procedures a5 required by the respective laws for entry into foree of the said
Agreement and Protocol, inaccordance with paragraph | of article 29 of the said Agreement; a, And whereas. clause (b) of paragraph 3 af anticle 24 of the said Agreement provides that the provisions-of the said Agreement shall have effect in India 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 Agreement enters mito force.
q, Now, therefore. in eacrose of the powers conferred hy section MW) of the Income=tax Act.
1961 (43 of 1961). the Central Government hereby directs that-all the provisions-of the satd
Agreement and Protocol between the Government of the Republic of India and the Government af the Republic of Croatia for the avoidance of double taxation and for the prevention of fiscal evasion with respect lo faxes-on income, as set out inthe Annexure hereto, shall be given effect ta inthe Union of India with-effect from the first day of April, 2016, being the first day of the fiscal year next following the calendar vear in which the said Agreement entered into force,
[Notification No. 24 aod F.No, 501/09/1995-PTD-]]
(Akbilesh Ranjan)
Joint Secretary

—EE——
P
— :
: AGREEMENT
BETWEEN
: THE GOVERNMENT OF THE REPUBLIC OF INDIA ;
AND i
F THE GOVERNMENT OF THE REPUBLIC OF CROATIA =
=. -
S FOR THE AVOIDANCE OF DOUBLE TAXATION AND FOR THE PREVENTION :
| OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME ;
The Government of the Republic of India. and the Government of the Republic of Croatia, sf
E Desiring to conclude an Agreement for the avoidance af double taxation and the prevention af E
i fecal evasion with respect to taxes on income. and with a view to Promoting economic “I
= cooperation between the two countries, t
‘4 Have agreed as follows: dl
# Article 4 :
is PERSONAL SCOPE 4
4 This Agreement shall apply to persons who are residents cf-one or both of the Contracting E
= Stales 3
iS Article 2 ;
= TAXES COVERED 4
: 1. This Agreement shail apply to taxes on income imposed on hehalf of a Contracting State |
= or of ils political subdivisions or local authorities. irrespective of the manner in which they -
4 are levied. :
: -. There shall be regarded as taxés on income all faxes imposed on total income, oon a it elements of income, including taxes on gains from the alienation of movahle or immovable ia a property, as well as taxes on the total amounts of wages or slarias paid by enterprises a
B 3. The existing taxes to which the Agreement shall apply are-in particular a a fa) In India: ig aa the income tax, including any surcharge thereon: "
a (hereinafter referred to as "Indian tax") a
% (5) In Croatia: :
“4 () the prefit tax: and 4
a fil) the income-tax, 3
a (hereinafter referred to.as the “Croatian tax": | i pS |i
| I
‘i I a i — 4
Ce TE Rea ee ee ee Se a Eee hee RG MELT a CT ||

_———eESE— S—
F
: 4. The Agreement shall apply aise to any identical or substantially similar taxes which are :
J imposed afier the date of signature of the Agreement in addition to, or in place of, the Fs existing taxes referred to in paragraph 3. The competent authorities of the Contracting e
States shell notify each other of. significant changes which have been made in their A
respective taxation laws. a
Article 3 iy
: GENERAL DEFINITIONS “
: 4. For the purposes of this Agreement, unless the context otherwise requires, 2
z (a) the term "Republi¢ of Croatia” means the territory of the Republic of Croaba a well .
f as those merilime areas adjacent to the outer limit of territorial sea, including 3
= seabed and sub-soil thereof, over which the Republic of Croatia in accordance with a
“it international faw (and the laws of the Republic of Croatia) exercises ils sovereign "
=o nights aired junsdichon, -
ie (bh) the ferm “India" means the territory of India and Includes the territonal sea end i
5 airspace above it, as well as any other maritime zone in which India has sovereign a i hi nights, other rights and jurisdiction, according fo the Indian lew and In accordance fi a wath international law, including the U.N. Convention on the Law of the Sea: :
x fe) the term “person” includes.an individual, a company, & bady of persons end any 5
i other entity which is treated as a taxable unit under the taxation laws in fores-in the a
“ta respective Contracting Stetes, i e (d) the term “company” means any body corporate or any entity which is treated as a z a body corporate for tax purposes: i iF (e) the terms “enterprise of a Contracting State’ and “enterprise of the other #
: Contracting State" mean respectively an enterprise camed on by a resident of @ ey ce Contracting State and an enterprise carried on by a resident of the other Contracting a a State, i t | (f} the term “international traffic" means. any transport by @ Ship or aircraft operated by
2 an enterprise which is a resident of a Contracting State, except when the ship or 4
is aircraft is operated solely bebween places inthe other Contracting State; a a (a) the term “competent authority” means: i
A (i) in the case of Croatia, the Minister of Finance or his authorized rapresentalive; zi
; (i) in the case of India, the Central Govemment in the Ministry of Finance i ie {Department of Revenue) or its. authorized representative; T
i fh) the-term “natonal means: he i (ii any individual possessing the nationally of a Contracting State; e.
4 (i) any iegal person, partnership or association deriving iis status 2s such fram the |
if laws in force ina Contracting Slate; ;
- oe]
i (i) the term “fiscal year” means: oe i: (fj) in the case of Croaiia, the calendar year, a e (i) in the case of India, the financial year haginning on the 1stday of April, ei a iE,
4 (j) the term "tax" means Croatian tax oF indian tax, as the context requires, but shall Fi a not include any amount which is payable in respect of any default or ornission in a a relation to the taxes lo which this Agreement applies or which represents a penalty Ee a or fine imposed relating to those taxes, |
if (k) the terms “aContracting State" and "the other Contracting State" mean the Republic k
3 ol Croatia or the Republic of Indias the context requires
E 2 .
iS .
A, Lo i a — ar 4
Se tee ere nirtar aii ere ace it ante Nees esl vie aaa aan a mua Sy Man sk aN

— EE —
=F

ie ya char gael ac ale Tce vet ok Bnet sat pP gy Spee gee Rae Sa el Pe ae are Joi cia
: 9 As fegards the application of the Agreement by a Contracting State any term not 3

a defined therein shall, unless the context otherwise requires, have the meaning whech it H
: has under the law of that Stale concerning the taxes to which the Agreement applies 4
“i Article 4 =
; RESIDENT 4

is 4, For the purposes of this Agreement, the term "resident of a Contracting State" means "
i any person wha, under the laws of that Stete, is liable to tax therein by reasan of his it

i domicile, residence, place of management or any other crifenon of a simiar nature This 2
i: term does not include any person who is lieble to-tax in that State ‘in respect only of rt

yf income fram sources in that State, é

4 2 Where by reason of the provisions of paragraph’ 1 an individual is a resident of both a

i Contracting States, then his status shall be determined as follows: ia

4 k i (a) he shall be deemed to be'e resident cf the State in which he has a permanent horne

z available to him It he has-a permanent home available to him in Doth States, he Be
' fe shall be deemed to be a resident of the State wilh which his personal and economic =
ce |. relations-are closer (centre of vital interests); fs

2 fb) if the State in which he has his centre of vital interests cannot be determined, or if E

fs he has not a permanent home available to him im.ether State, he shall be deemed i

ef io be ‘a resident‘of the State in-which he has an habitual abode: be

c {c) if he has an habitual abode in both Stetes or in neither of them, he shall be deemed |

7 fo be 4 resident of the State of whicn he is 3 nstional, A

a (d) if he is a national of both States or of neither of them, the competent authorities of a

a the Contracting States shall satte the question by mutual agreement ue

3 a

4 3. ‘Where by reason of the provisions of paragraph 1 @ person other than an individual is & Ee

r resident of both Contracting States, then it-shall be deemed to be a resident.of the State “i

a in which its place of effective management i situated, If the State in. which its place of 4

a effective management is situated cannot be determined, then the competent avihonties Fa

i of the Contracting States shall settle the question by mutual agreement Ee

a Article 5 -

ft PERMANENT ESTABLISHMENT 4
E 4, For the purposes of this Agreement, the tern “permanent establishmenl’ means a hxec et

a place of business through which the business of an enterprise is wholly or panly carried ;

a on. |

! : 2 The term “permanent establishment’ includes especially E

4 fa) a place of management, :

ic i

he (b)..a branch: i

E (c} an office; ;

4 (da) a factory: 4

4 fe) aworkshop; re

te

i | |

4 | iH

‘a ————— er —— ‘ : - : _ ah #]
See TE RTE EE aE Meee is SM a eee men

=. 3 “m Hii ie rs oy tata td oe = ete es | ath 3 Fa Fete} Biles ST hehe ce ee Ta! [ated le prebe ee Apne Stith ort Fi (f) a mine, an oil or gas well, a quary or any other place of extraction of natural ‘
feSOuUrces; "
{g) a sales outlet: j
: (h) a warehouse in relation to-a person providing storage facilities for olhers; and i (i) a farm, plantation of other place where agricultural, forestry, plantation or related :
a aciivities are carred.on 2
! 4. A building site or construction oF assembly project or Supervisary activities in connection f be therewith constitute a permanent establishment only if such site, project of activity last ‘
i more than 72 monihs. i a 4. An enterprise shall be deemed to have a permanent establishment in a Contracting Stare
‘ and to canyon business through that permanent establishment if it provides services OT as i facilities in connection with, or supplies plant and machinery on hire used for orto be used a
= in the prespecting for, or extraction oF exploitation of mineral oils in that State. 3
: 5. Notwithstanding the preceding provisions of 1s Article, the jerm "permanent “
( z establishment” shall be deemed nat to include: ‘
ja} the use of facifities solely for the purpose of storage, display or delivery of goocs o 3
+ marchendise belonging to the enterprise, wh ce {b) the maintenance of a stock of goods or merchandise belonging to ihe enterpnse Ms ia solely for the purpase of storage, display or delivery i
4 ic) the maintenance of a stock of goods or merchandise belonging to the enterprise 5
" solely for the purpose of processing by another enterpnse; a a {d) the maintenance of a fixed place of business soley for the purpose. of purchasing %
‘ goods or merchandise or af collecting information, forthe enterprise, i
: (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for z |
4 the enterprise, any other activity of a preparatory or auxiliary character, =
i (f) the maintenance of a fixed: place of business solely for any combination of activiies af af mentioned in sub-paragraphs (2) to-(e}, provided that the overall activity of the fixed *
Z place of business resulting from: this combination is of a preparatory oF auxiliary 4
= character. 3
a 6 Notwithstanding the provisions of paragraphs 1 and 2, where a person - other then an 4
Fl agent of an independent status to whart paragraph 8 apples - is-acting ina Contrachng .
ra Siste on behalf of an enterprise of the other Contracting State, that enterprise shall be |
& deemed to have a permarient establishment in the first-nentianed Contracting State in |
= respect of any activiies which that person undertakes for the enterprise, ifsuch @ parson: 4
. (a) has and habitually exercises in that State an aulhority to conclude. contracts. in Ine i
= aame ef the enterprise, unless the activilies af such person are limited to those a, pe mentioned in paragraph 4 which, f exercised through @ fixed place of business, would a i | not make this fixed place of business a permanent establishment under the prowess <
4 of thal paragraph; or fs
| {b) has no such authority, but habitually maintains in the firstmentioned State a stack of s a - f z _ if
= goods oF merchandise from which he requiary delivers goods oF merchandise .on \
# behalf of the enterprise, oF | 3]
| i
7 s 3
aH | | 2
al | ee
Be — Se ____|
SEA ca Sa ets Seiad abe HO ba Pe PS a eee Ri eG my opie ian a ia Le mera

ral F ——

f , {c} habitually secures orders in the first-mentioned State, wholly or almost whally for tie §
enterprise itself or for the enterprise and other enterprises controlling, controlled by, or \

; subject to the same contral, as that enterprise. 5
7. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a is

Contracting State shall, except in regard to re-insurance, be deemed to have & permanent

establishment in the other Contracting State fit collects premaums in the territory of that other State or insures risks situated therein thraugh a person other than an agent of an ie
: independent status to whom paragraph 8 applies te

: & An enterprise shall not be deemed to have a permanent establishment in & Contracting c
State merely because it caries on business in that State through a broker, general :

commission. agent or any other agent of an independent status, provided that such a

persons are acting in the ordmary course of their business. However, when the acbvities

of such an agent are devoted wholly or almost whelly on behalf of that enterprise, he will bs

not be considered an agent of an independent siatus within fhe meaning of this tf

| fe paragraph. i
: 9 “The fact that acompany which is a resident of a Contracting State contrats or is controled 2

; i by a company which is a resident of the other Contracting State, or which carnes on =
business in that other State (whether fhrough-a pernnanent establishment or ciherwse),

: shall not of itself constitute ellher company & permanent establishment of the other

F- Article 6 #
3 INCOME FROM IMMOVABLE PROPERTY :
; 1. Income derived by a resident of a Contracting State from immovable property Hinchuding a

a income from agriculture or forestry) situated in the other Contracting State may be taxed F

Ef in that other State. i

. 9 The term "immovable property" shall have the meaning which ii has under the law of the *

: Contracting State in which the property in question is situated. The term shall in any case o

= include. property accessory to immovable property, livestock and equipment used in E

uy agriculture and forestry, rights to which the provisions of general law respecting landed Hi

in property apply, usufruct of immovable property and rights to variable or fixed payments as a

# consideration for the warking-af, or the right to work, mineral deposits, sources and other a

s natural. resources; shins, boats, aircraft and moter cars shall not be regarded as a

E: immovable property, x

i" 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or :

3 use in-any other form of immovable praperty, :

ti 4. The provisions of paragraphs 1 and 3 shallalso apply to the income from immovable L

7 groperty of an enterprise and to income from immovable praperty used for the y3

3 performance of independent personal services: ss

‘ Article 7 3

= BUSINESS PROFITS E

4 1. The profits of an enterprise of a Contracting Slate shall be taxable only in that. State 2

= unless the enterprise carnes on business in the other Contracting. State through a

a permanent establishment situated therein. W the enterprise caries on business @& o:

2 z :

: | if

aap be ake ie Ay Oe c= feet bee Pa 2 et ay al Le ee he a here ee be are . LS
aforesaid, the profits of the enterprise may also be taxed in the other Slate but only so much of them as is attributable to that permanent establishment :
: a Subject to the. provisions of paragraph 3, where an enterprise of a Contracting State :
cares on business in the other Contracting State through a permanent estatdishment situated therein, there shall in @ach Contracting State be attributed to that permanent ; establishment the profits which it might bea expected to make if it were a distinct and a
4 separate enterprise engaged in the same or similar activities under the sarneé-or similar i
& conditions and desing wholly independently with the enterprise of whoch it isa penmenent 4
: establishment, =,
3. In determining the profits. of @ permanent establishment, there shall be allowed as "
s deductions expenses which are incurred for the purposes of the permanent establishment, A
ih including executive and general administrative expenses so incurred, whether in the State Ei:
5 in whieh the permanent esteblishment is situated or elsewhere, in accordance with the ¥
: provisions of and sublect to the limitations of the tax laws of that State. if |
+= # 4. No profits shall be attributed to a permanent establishment by reason of the mera -
F = purchase by that permanent establishment of goods or merchandise for the enterprise is
& &. For dhe purposes. of the. preceding paragraphs, ihe profits to be alinbuled to the "
2 permanent estehlishment- shall be-determined by the same meted year by year unless “4
“i thera is good and sufficiant reason-to the contrary. it
& 6. Where profits include items of income which are dealt with separately in cther Articles of ze i x this Agreement, then the provisions of those Articios shall not be affected by the .
a | provisions of this Article FS |
: :
; Article 8 q
= INTERNATIONAL TRAFFIC 3
E ty
E 7. Income deived by an entenvise of a Contracting. State fram the operation of ships or | &
I aircraft in international traffic shall be taxable only in thal Contracting State a i 7c
= 2. income derived by a transportelion enterprise which isa resident of a Contrecting State i
Fe | from the use, maintenance, or rental of containers (including trailers and other equiorent i |
a i for the transport of containers) used for transport of qoods or merchandise in international ;
: traffic shall be taxable.only in that Contracting State unless the containers are used solely Es a within the other Goniracting State, e
Es 3, if the place-of effective management of a shipping enterprise is aboard a ship, then it shall a f. be deemed to be situated in the Contracting State in which the home harbour of the -ship i is situated or if there is mo such home harbour, in the Contracting Stale of which the =
= operator of the. ship Ba resklant :
a iz nt )
4, For the purposes of this Article interest on funds connected with the operation of ships or :
i | aircraft’ in international traffic shall be regarded as income denved from the operation of e j a such ships or aircraft and the provisions of Article 11 shell not apply in relation to such 4
a inberest. A }
: 5, The provisions of paragraph 1 shallalso apply to profits from the participation ina paol, a a rE joint business of an internation al operalion agency i a | E:
| 6 F
a | ‘
fl | ia
— eS ee |
i otf] PL kere GB en Re ee La oh Laps MP Aone Ne Reva ee cB

: Article 9 =
: ASSOCIATED ENTERPRISES 5
: #. Where =
iz [aj an enterprise of @ Contracting State participates directly or indirectly’ in the =|
=. management, control or capital of an enterprise of the other Contracting State, or 2
(b) the same persons participate directly or indirectly in the management, control or ‘s capital of an enterprise of a Coniracting Stale and an enterprise of the other F
* Contracting State, a
E and in either case conditions are made or imposed between the two enterprises in their i eammercial or financial relations which differ from those which would be mace between iE
£ independent enterprises, then any proiis which would, -but for these conditions, have a accflied to one of the enterprises, but, by reason of those conditions, have not so é,
5 acerued, may be included in the profits of that enterprise and taxed accordingly zi
: 5 Where 2 Contracting State includes in the profits of an enterprise of thal. State - and taxes S
1 accordingly - profits on which an enterprise of the other Contracting Stale has been "
i charged to tax in thel other State and the profits so Included are profits which would have i aceried to the enterprise of the first. mentioned Siete if the conditions made bolween the ie
5 two enlerprises had been those which would have been made between independent 5
, enterprises, then that other State shal make en appropriste adjustment to the emaunt of Ef
: the tax. charged therein on these profits. In determining such adjustment, due regard shall |
i be had to the other provisions of this Agreement ard the competent authonties of the MH:
4 Contracting States shall, if necessary consult each other. =
E Article 10 ;
- OIVIDENDS :
3 1. Dividends paid by a company. which is a resident of a Contracting State to a resident of |
bE the other Contracting State may be taxed im that other State, fs
" 3 However, such dividends may alsa be taxed in the Contracting State of which ihe ay company paying the dividends is a resident. and according to the laws of that State, But if ng
” the recipient is the beneficial owner of the dividends the fax. so charged shall not “4
44 exceed: ci
+ : ae a a (a) 5 percent of the gross amount af the dividends if the baneficial owner 15 @ Company \
zy (other than a partnership} which holde directly at least 70 per cent of the capital of the a company paying the dividends, a e (b) 15 per cent of the grass amount of the dividends in all other cases. =
aT a F we: : ie
2 The competent authorities of the Contracting States shall by mutual agreement sete tie i if mede of application of these limitations. Ee a This paragraph shall nat affect the taxation of the Company in respect of the profits out af i :
F, which the dividends are paid. :
fe 4 Theterm “dividends” 43 used in this Article means income from shares or other rights, nol 4
a being debt-claims, participating in profits, as well as income from olher corporate nghis i a which ig subjected to the same taxation treatment as Income from shares by the laws of | a the State of which the company making the distribution is a resident | iy ag \ ze
: a ome Toren TE a eT YS Le RETEST EES eee

j 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the i dividends, being a resident of a Contracting State, caries on business in the other a
Contracting State of which the company paying the dividends is a resident, through a 3
permanent establishment situated therein, or perforin in that other State independent oF
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 5
base. In such case the provisions of Article 7 or Article 14, as the case may be, snail :
; apply P
; 5. Where a company which is a resident of a Contracting Stete derives profits or income A
zs from the other Contracting State, that other Slate may not impose any tax on the *
‘dividends paid by the company, except insofaras such dividends are paid to a resident of fe a that other State or insofar as the holding in respect of which the dividends are paid is =
i effectively connected with a permanent establishment of = fixed base situated in that other -
Z State, nor subject the company's undistributed profits to a lax on the compenys -
4 undistributed profits, even if the dividends paid or the undistributed profits consist wholly =
= or partly of profits or income arising in such other State. 7
Th T
ri § Article 14 <
i INTEREST ae e 4. Interest arising in @ Contracting State and paid to a resicent of the other Centracting Stale A
nt may be taxed in that other State, i i > However such interest may also be taxed in the Contracting Stale in whish it enses and e iy according to the laws of that State, but if the recipient is the beneficial owner oF the +
i interest the tax so charged shall not exceed 10 per cent of the gross amount of the a fe interest. The competent authorities of the Contracting States shall by mutual agreement 3
é settle the made of ap plication of this limitation: 4 |
z 3, Notwithstanding the provisions of paragraph 2 interest arising ina Contracting State shall =
: be exempt from tax in that State provided it ls derived and beneficially owned by: ES
+ (i) the Government, a political subdivision or a local authority of the other Contracting a
Stale, oF a
- (i) the Central Bank of the other Contracting Stete or any other bank or govemmental i it financial institutions/agencies that mey be mutually agreed upon between the twa |
2 Contracting States. a i 4. The term "interest" as used In this Ariicle means income from debt-claims of every kind, ES
F whether or nat secured by mortgage and whether or not-carrying a right to pericipate in i a | the debtor's profits, and in particular, income from government securibes and income from
4 | honds or debentures, including premiums and prizes attaching to such securities, bonds :
i or debentures. Penalty charges for late payment shall pol be regarded as interest for ihe fe a purpose of this Article. s
3
r. 5, The provisions of paragraphs 1 and 2 shall not apply ifthe beneficial owner of the-interest, u a being a resident of a Contracting State, carries on business in the other Contracting State Zs
4 in which the interest arises, through a permanent establishment situated therein, of i performs in that other State independent personal services from a fixed base situated i
3 therein, and the debt-claim in respect of which the interest is pard is effectively connected ie
" with such permanent establishment or fed base. In such case the provisiwris of Arbole 7 =f oa | or Anicle 14,45: the case may be, shall apply. = |
: : :
iS Bi i lF
ia ———— ae ae i hperey rer peepee apccumncer per se sea PET SPRUE PU Tene ee cae cane ee ee

_ li“ om j SATS :
rd :
y 6. Interest shall be deemed toanse in a Contracting State when the payer is that State tself, ; f ; a political subdivision, a tocal authority or a resident of thal State. Where, however, the E
person paying the interest, whether he is a resident of a Contracting State or nat, has ina :
: Contracting State a pennanent establishment ora fixed base in connection with which the ;
: indebtedness on which the interest is paid was incurred, and such interest is borne by 3
: such permanent-eslablishmento fixed base, ihen-such interest shall be deemed to arise =a i in the Goniracting State in which the permanent-establishment or fixed base is situeted. ;
: 7. Where, by reason of a special relationship between the payer and the beneficial owner or us
: between both of them and some other person, the amountof the interest, having regard to :
the debt-claim for which it is: paid, exceeds the amount whieh would have been agreed ; r upon by the payer and the beneficial owner-in the absence of such telatanship, the =
: provisions of this Article shall apply onty to the last-mentioned amount. In such case, the :
excess part of the payments shall remain taxable according to the laws of each 2
: Contracting State, due regard being had to the other provisions. of this Agreament. f a Article 42 te
E ROYALTIES AND FEES. FOR TEGHNECAL SERVICES ig
{ : i
= 1. Royalties ‘or fees for technical services arising ina Contracting State and paid to a | :
; resident.of the other Contracting Stete may be taxed in that other State. ‘
a 2 However, euch rayaltias or-fees for technical services mey also be faxed in tha t; |
2 Contracting State in which they arise, and according to the laws. of that State, but ihe sj
| = | recipient is the beneficial owner of the royalties or fees for technical services, the tax so
| BS charged shall not exceed 10 per cent of the gross amount of the royalbes or fees for é
5 technical services. :
Fp §. fa) The term “royalties” as used In this Anice means payments of any kind received as & +
= consideration for the use of, ar the right to use, any copyright of literary, -anistic or |
i scientific work including cinematograph films, films or tapes or other means of :
‘Teproductian for radio. er television broadcasting, satellite or cable transmission for "
3 broadcasting. to the general public through any form of electronic media,.any patent, trade ae i mark, design or model, plan, secret formula or process, or any industrial, commercial or 5
a scientific equipment, or for information conceming Industrial, commercial or scientific
é expeneance (know-how). i
= ib) The term “fees for technical services" means payment of any-kind in consideration for 4
a the rendering of any manegenal, technical or. consultancy services including the provision is
3 of services by technical or other personnel but does not include payments for services is
FE mentioned in Articles 14 and 15 of this Agreement a
5 4, The provisions of paragraphs 7 and 2 shail not apply if the beneficial owner of the 3
. royalties or fees for technical services being a resident of a Contracting State, carnes.an e
F business in the other Contracting State in-which the royalties or fees for technical senices s:
i arise, through a permanent.eslablishment situated therein, or performs in that other State 2
7 independent personal services from a fixed base situated therein, and the nghtor property 5
E in respect of which the royalties. or fees for technical services are. paid is effectively 4
e connected with such pennanent establishment or fixed base, In such case the provisions Be
3 af Anicle 7 or Article 14, as the case may be, shall apply, id be 5. Royalties-or fees for technical services shall be deemed to arise in a Contracting State 4
| when the payer is that State itself, a political subdivision, a local authority ora resident af +
a | that State. Where, however, the person paying the royalties or fees for technical services, :
7? “a r. _ ii
Bega get pee ger eee args n een rarest a rei poem Manan tps: Pee ene Tang ete TT acorns ea

sare becteta Beira erate ei Fie a ad ease pal ed A coe a cer bet Eattind Sar Ne Diane eee SL Sintra he aah Sted Bie a :
whether he is a resident ofa Gontracting State or not, has in a Contracting. State a E
permanent establishment or a fived base in connection with which the liability to pay the 3
royalties or fees for technical services was incurred, and such royalties of fees for 4
3 lachnical services are bore by such permanent establishment or fixed base, then such :
| iF royaltias or fees for technical services shall be deemed ta arise in the State in which the a
| Ey permanent establishment oF fixed bast is situated ei it & ‘Where, by reason of a special relationship between ihe payer and the beneficial owner or 4
i between both of nem and some other person, the amount of the royalles or tees for :
4 technical services, having regand.to the use, right or information for which they are paid, ES
ra eyeseds the amount which would have been agreed upon by jhe payer and the beneficsal a
Ee: awner in the absence of such relatonship, the provisions of this Anicve shall ap ply cory to
‘ the last-mentioned amount, In such case, Ine excess part of the payments shall remain 5
i taxable aecording to the laws of each Contracting State, due regard being hadiotheother | B
1; provisions of this Agreement z
é E
e Article 13 rE.
i CAPITAL GAINS Ee
4 (pl r.
4 4. (Gains derived by a resident of 2 Gontracting State from lhe: allenation oF inuriovabie Be ts property referred to in Ariche G and situated in the other Contracting State may be taxed in be
: thal other Stabe
Be 3 Gains from the alienation of movable property forming part of the business property of @ f
= permanent establishment which an-entemnse of a Contracting State has inthe aie '
14 Contrecting State or of movable property pertaining to a fined hase available to a resident i a of a Contracting State in the other Contracting State for ihe purpose of performing ay independent personal Services, including. such gains from the alienation of such 2
“3 permanent establishment (alone or with the whole enteronse) or of such fied base, may :
Hi also be taxed in that other State. 1}
| 9 Gains derived by an enterprise of a Contracting State from ihe alenation af shigs or s s aircraft operated in international trafic of movable oroperty pertaining ta the aperation of F
3 such ships or aircraft shall be taxable only in that State.
a4
‘a 4 Gains from the alienation of shares of the captial sock oi a company ihe property of which: ; os: consists directly of indirectly ponelpally af immovable property sduatec in a Contacting a a | State may be taxed in that State, 4
a 5. Gaing from the alienation af shares. other than these mentioned In paragraph 4,:in a a | company which 15.4 resident of a Contracting State may be taxed in: that Cantracting ia Stale. :
a 6 Gains from the alienation of any property other than that referred ia in paragraphs 1 fo 6, be te: shall be taxable only in the Gontracting State of which the alienator isa resident |
: Article 14
INDEPENDENT PERSONAL SERVICES |
a 4 Income derived by @ resident of a Contracting State in respect of professional services of :
f other activities of an independent character shall be taxable only in that Skile except in ie a | the follawing circumstances, when such incame may also be taxed i the otter 1
St Contracting State |
: |
a 10 i a
“ene spp gee EME ESTA SS SST San eS

a a as —-
SSE dake ea Cae ache ee ee pec sorb Pec cee inte ie bear er aer er mio Wee pee teh sce ay
¥ : oe a fa) if he has a fixed base regulary available to him in the other Contracting State for the i purpose of performing his activities; in that case, only So much of the income as-is 5
: altnibutable to that fixed base may be laxed in thal olher State; or
: {b) if his stay in the other Stete is fora period or periods aggregating 183-days or more in *
any T2-manth period commencing or ending in the fiscal year concemed,: in that case, =
= onky so much of the income as is denved from his activilies performed in that other f
Fi ciate may be taxed in that-other State. a
= #, The term “professional services" includes especially independent scientific, literary, -
artistic, educational or teaching achvities as well aS the independent actyvities of re
4 physicians, lawyers engineers, archieacts, surgeans, dentists and accountants. i
: Article 15 x a DEPENDENT PERSONAL SERVICES m4
= |. ‘Subject to the provisions of Articies: 16, 18.and 15, salanes, wades and other similar :
= remuneration derived by a resident of a Contracting State in respect of an employment zt
Pe shall be faxable only in that State unless the employment is-exercised in the other Et
- Contracting State. Ifthe employment is $0 exercised, such remuneration as is derived eS,
" therefrom may be taxed in thet other State. o
4 2. Nobwithstanding the provisians of paragraph: 1, remuneration derived by a resident of a f iS Contacting Siate in respect of an-employment exerciseg: in the other Contracting State 2
; shall be taxable only in the first-mentioned State if a i (3) the-recipient is present in the other State for a period or periads not-exceading in ihe 3
=i aggregate 183 days in any 12-month period commencing or ending in the fiscal year y
4 concemed, and i
= (b) the remuneration is paid by) or on behaif of, an-employer who is-not a resident. of the a
BE other State, and a
3 (c} the remuneration is not borne by a permanent establishment of a fixed base which the =
= employer has in the other State, Fe
": 3. Notwithstanding the preceding. provisions of this Article, rerraneration derived in respect 3
i of an employment exercised: aboard a-ship or aircrahl operated in intemational traffic, by 4
a an enteroise of a Contracling State may be taved in that State: =
i z i Article 16 =
a DIRECTORS' FEES 7
“a -
4 Dxrectors: fees and other similar. payments denved by a resident of a Contracting State in his :
#4 Capacity as aomemberof the board of directors of a’company which is a resident of the other i a Contracting State may also be taxed in that other State. em
| i |
| ‘ Si i H iF
; if ie | *
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# ee ail i oa on en ey be ose Rem nd Bas Un Pp tea Os dances ein edited ets aL aa peat hie cB

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SPEER Sco spel ol Set Pages eget oti et deer ee ee Me ea ged ki de ee eee ica tt ee fae if Article 17 7:
f ARTISTES AND SPORTSPERSONS fF
5 4. Notwithsfanding the provisions of Articles 14 and 15, income derived by a resident of a i:
; Contracting State as ‘an entertainer, such #54 theatre, motion picture, radio or television fr artiste, or a musician, of as a sportsperson, from his personal activities as such exercised a
: in the other Gontracting State, may be taxed in that other State, zt rs 7. Where income in respect of personal actyvities exercised by an entertainer or a a is sportsperson in his capacity #5 such accmes not to the enterainer or sportsperson =
= himself but to.another person, that income may, notwithstanding the provisions of Articles :
% 7, 44and 15; be taxed in the:Cantracting State in which the activites of the entertainer or f= sportsperson are exercised.
2 j 3.. The provisions of paragraphs 1 and 2, shail not apply to income from activities performed =| |
a in-a Contracting State by entertainers. or sporispersons if the visit to that State is :
ie substantially supported by public funds of ane or both of the Contracting States or of f, political subdivisions or local authorities therec! In such a case, the income is taxable only i ss in the Contracting State of which the entertainer or sportsperson isa resident ie Article 18 :
i PENSIONS
:
Subject to the provisions of paragraph 2 of Articia 18, pensions and other similar remuneration
E paid to a resident of a Contracting State in consideration of past employment shall be taxable i
=i only in thet State.
:
a Article 19
“J GOVERNMENT SERVICE
: 1. ta) Remuneration, other than @ pension, paid by a Contracting State of 2 poitical z subdivision or a local authority thereof ta-an individual in respect of services rendered et to that State or subdivision or authority shall be taxable only in that State E
uF (6) However, such remuneration shall be taxable only in the other Contracting State d the E
Fe senices ere rendered in that Stateand the individual is a resident of that State whe. if
S fi) is a national of that State, or |<
2 (i) did not become a resident of that State solely for the purpose of rendering the
| Services, ia : +7 i i 2. (a) Any pension paid by, or out of funds created by, a Contracting Stele or a poabcal lk i subdivision ora fecal authority thereof to an individual in respect of services rendered }
bs to thal State or subdivision or authority shall be taxable only in that State fe (b) However, such pension shall be taxable only in the other Contracting State if ihe i
‘S individual isa resident of, and a nationalof, that State a | 3. The provisions of Aricles 15, 16 and 18 shall apply to remuneration and pensions in i fal | respect of services rendered in connection with a business carried on by 3 Contacting i a State or a politicalsubdivision or a local authorly thereat i a | :
oe |
+ 1
a |
i |
k ; i 12 i |
a | |
ee ——_———_—_— eee —————————————————————— | ft

= Tae TAF EN MM RP Aca cok ee ST ee anon ee ae eal Rie th Mt a if f a
Je q Article 20 #
F STUDENTS AND APPRENTICES a
, J Fi al 4. A student or business apprentice who is of was a resident of a Contracting State a
—_—. immediately before visiting the other Contracting Stete and who is present-in that other “
3 Contracting State solely for the purpose of his education or training shall be exempt fram =)
tax in that other State on: | st
"
: (a) payments made to him by persons residing qutsice that other State for the purposes B
= cf his maintenance, education or training, and %
Ls | (b) remuneration from employment in that other State, in an amount not exceeding UST Fy
7 1000 or its equivalent amount during any fiscal yaar, i
3 as the case may be, provided that such employment is directly related to his studies: or is :
i undertaken for the purpose of his maintenance. } a a A
a 4 The benefit of this Article shell extend only for such penod of hme as may be reasonable le or customarily required to complete the education or training undertaken, but in no-event j eS shall any individial have the benefits of this Article for more than five conseculve years u from the date of his first arnval in that other Contracting Stale. F
i | r.
i Article 21 iz a: PROFESSORS. TEACHERS AND RESEARCH SCHOLARS %
=k =o
=f ni a 1. A professor or teacher who ts or was a resident af the Contracting State immedtately a a before visiting the other Contracting State for ihe purpose of teaching of engaging in i si research, or both, ata university, college, school or other approved institution in that olhes | a
= Contracting State shall be exempt from tax in that other State on any remuneration for \@
Z euch teaching or research for a penad not exceeding Iwo years from the. date of his anival :
a in that other State. ‘a rt a ia 2 This Article shall not apply to income from research, if such research i& undertaken a a | primarily for the private benefit of a specific person of persons, | ‘a
Be 3. For the purposes of this Article and Article 20, an individual shall be deemed to be 2 3
ee. resident of a Contracting State if he is resident in that State in the fiscal yeer in which he _
a visits the other Contracting State or in the immediately preceding fiscal year, i a | ee
Ee | 4, For the purposes of paragraph 4 “snproved institution” means ean institubon which has +:
a heen approved inthis regard by the competent authority of the concerned State 4
mm | Article 22 |
a | OTHER INCOME f
5 1. Items of income of a resident of a Contracting State, wherever arising, not-deatt with in ihe fi
; foregoing Articles of this Agreement shall ba taxable only in that State, }
ie 2 The provisions of paragraph 1 shall not apply to income; other than income fram }
immovable property as celined in paragraph 2 of Anicle 6, if the recipient of such income, e iz being a resident of a Contracting State, cares on business in the other Contracting Stale
-: through & permanent eelablishment situated therein, or performs in that other Slate | :
F independent personal services froma fixed base situated therein, and the right or propery .
a in Fespect of which the income is paid & effectively connected with such permanent | t i=! 4 t
FE | 12 i
} I | &
| | F
q —————— ——— oe = = a ae: | |
SURE ee Ce a I eT sSNA Sh HRTEM a ESET ETS |

¥
i oy - Thi aor ee ee a ee ae eff vegeta Wt ei rape ree se ae 10 airy Lege Prete Sie r re es a ia : Hay ff establishment of fixed base. In Suen case the provisians-of Arbele ? or Adicle 14, a5 the ry ease may be, shall apply. a.
a
3. Hoiwithslanding ine provisions of paragraph 1, if a resident of a Contracting State derives x incame fram sources within the other Contracting State in the form of fotterles, crossword a
" puzzles, faces including hore feces, card games and aiher games af any ‘sort or et
= gambling or betting of any form or nature whalsoever, such income may be axed in the |
° other Gontracing Siate fe
“ 4
: Article 23 fa a ELIMINATION OF DOUBLE TASATION :
Ee + The laws in force in either of the Contracting State wil continue to gavem:- the faxation or ie
Ee | incame in the respective Contracting States except where provisions to the contrary are :
i made in this Agreement i rs i:
5 2. Inthe.case of Croatia double laxstion shall be eliminated 25 follows :
‘a a fi | Where = resident of Republic of Croatia derives: income which, in accordance with the q
': provisions of this Agreement, may be taxed in India, Republic of Groatia-shall allow as a 4
i | deduction {rom the tax on the income of that resident an amour! equal to the income lax Ee
: paid. in India. Such deduction shall not, however, exoped fhaloartof the income-tex a 4
E computed before ihe deduction is given, which is attnbutable to tne wncarse which may be a
‘ - | &
taxed. in India
& 4. Inthe case of India Gouble taxation shall be eliminated as follows
4 K
i Where a resident of India derives income which, In acnordance with the-provisions of this =| &
5 Agreement, may be taxed in the Repu bic of Croatia, India shall allow a5 a deduction from i | the tax on the income of that resident sn amount eouel 10 the income fax paid In Crogha i.
f whether directly or by deduction at source. Such amount shall not however exceed thet 4
i pant of the income tax, 35 computed tefore the deducton is given, which is attribute bie to i a | the income which may be taxed in Croatia ; is ft i;
:: 4. Income which in accordance with the praveerons af this Agreement, is not to be subjected | E
} to tax ina Contracting State, may be taken into account for calculating the rate of tax tobe E|
BS imposed in that. Contracting State, 4
a Articte 24 Be iq HON-DISCRIMINATION a r 4 Nationals ofa Contracting State shall nat ba subjected in the other Contracting Slate to fe
= = . r fry
4 any taxation or any requirement conn ected therewith, which is oiner or mare burdensome ‘
: ihan the taxation and connected requirements io which nationals of thal other State in the #
i same circumstances, in. particular wain re spect ta residence, are OF may be subjected. This 4
a | provision shall, notwithstanding the provisians of Aricle 4. also-anply to persons who are |
not residents of one or bothoof the Co jiracting States. re
ES i
: > The taxation on & permanent establisnment which an enterprise of a Contracting Stale Us
: has in the other Cantracting State shall not be less favourably levied in that aber State } a a than the taxation levied on enterprises of that olner Siate camying on the same achviles. ba fd This: provision shall not be construed as preventing @ Contracting Siate trom charging ihe | ia a profits of a permanent eslabishment which a company of he other Contracting Sisle has | ‘A
3 in the first-mentioned State al arate of tax which is higher than ihal mpased on ihe prolits. I
| 14
ress
Fe | fa ha | he i ot i Taste ananassae hh aera erase RLS En area end nd PSS EES eae frets | /

gee Elen aa! Sea ET ern ae eo shea Lag AL a ee I LE pia lee Seat Pe di 4
j , - : : it y of a similar company of the: first matitioned Contracting Stale, nor as being in confict with if, the provisions of paragra ph 3 of Article 7 of this Agreement. i
This provision shall not be construed as obliging a Contracting State to grant to residents a of the other Contrachng State any personal allawances, reliels and reductions for taxation a purposes on account af civil status or family responsibilities which it grants fo its own a residents ie is 3, Enterprises of a Contracting State, the capilal ef which as wholly or partly owned or x
F controlled, directly or indirectly, by one of more residents of the olher Contracting Stale, a
- shall not be subjected in the first-mentioned State to any taxation of any requirement i
7 connecied therewiih which 1 other Of More burdensome than the taxation and connected 9
+ requirements to whien other similar enterprises of the first-mentioned. State are or mey bes zt
“ subjected be ti x iB | 4. Except where tha provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, oF ‘2
a | paragraph 6 of Anicle 12, apply, interest, royalties and ainer disbursement paid by an “
= enterprise of a Contracting State to a resident of the other Contracting State shall, for the in g purpose of determining ihe iaxable profits of such enterprise, be deductbie under ihe :
= same conditions as if they had been pad toa resident of the first-mentioned state be |
: ie
| ; : te
4 | 5 The provisions of this Article shall, notw ihstanding the provisions of Aricle 2, =ppiy '9 i ie faves of avery kind and descriphon
= ‘
a | Article 25
a MUTUAL AGREEMENT PROCEDURE 4
Fi 4 Where a person considers that the actions of one or both of the Contracting States result
4 or will result for him in taxation mot in accordance with the provisions of this Agreement, he fj may, inespective of tne ramedies provided by the Gomestic law of those Steles, present
| his case to the competent authority of the Co niracting State of which he is 2 resigent or, if ia
| his case comes under paragraph 7 of Article 24 to that of the Contracting State of wh ch |
im | ha is 4 national. The case must be presented within three years from the first notification ma | of the action resulting in taxation net in accordance with the provisions of the Agreement i
: i
4 The competent authority shall endeavour, if tha-objection appears to 11 fo be justiied and if i
: it ig not itself able to arrive at a satisfactory solution, to resolve the case by mutua 5
3 agreement with the competent authority of the other Contracting State, with 2 view Lo ine :
. aveadance of taxation wrach [5 not in aceardanse with fhe Agreement Any agreement 5
os _fepched shall be implemented nobwithstanding any time lireits in the domestic taw of the | be
E Contracting States ij
Ip % The competent authorities of ine Contracting States shall enceavour io resolve by mutual 4
a agreement any difficulties of doubts arising as io the interpretation or application of the 3
| Agreement, They may also consul together for the elimination of double taxation in cases |
a | not provided for in the Agreement HE
tes ki a | 4: The competent authorities of the Contrackng Grates may communicate with each other | :
2 | directly for the purpose of reaching an agreement in the sense af the preceding i
; paragraphs. When Wt seems advisable in order to reach agreement fo have an oral , i exchange of opinions, such exchange may take place through a Commission consisting of f i representatives of fhe competent authorities of the Cantractiig States. F
a | ie
: | 1s i
: :
% | 4
z |
a : | i
Baar aera Re ee at eee
J

; : DD — EE
a
Ae SE f ar e ae RETR ea bale yk gaan te aes Sorbet road nee ea ies Reps rape Pree EN a miad rl
Hh k
é Article 26 y fi EXCHANGE OF INFORMATION 3
i 4. The competent authorities of the Contracting Stales shall exchange such information a fincluding documents}, a5 is necessary for Corying out the provisions of this Agreement oF :
of the domestic lows of the Contracting Slales concerning taxes covered by the at
Agreement insofar as the taxation thereunder is mot canary to the Agreement in a particular for the prevention of fraud or evasan af such taxes. The. exchange of =
: information is no restricted by Article 1. Any infeamation received by 2 Contracting. Stale 4
a: shall be treated as secret in ihe same manner as information obtained under the domestic c is laws of that Stale and shall De disclosed only.to persons Of authorities {including courts te
3 and administrative bodies) invelved in the assessment OF collection of, the-enforcement or a ci prosecution In raspect of, or the determination of appeals in relation tp, the taxes covered if
. by the Agreement Such persons oF authorhes shall use the informabon only forsuch | a a purposes. They Mmeay disclose the information In public court proceedings. oF In judicial a
‘” decigions. Notwithstanding the foregoing, information received by @ Conlracting State may FY
rs be used for other purposes when such information may be used for such ather purposes =
: under the jaws of bath <Contrachng States and the competent authority af the supplying a re State authorses Such Use, &
ul :
ag 4
te 7 ‘In no case shall ine provisions of paragraph 7 be construed to as to Mnpose on 2 | ft (34 Contracting State the obligation. | i
=" siete a - 1 :
iF. (a) to carry oul administrative measures al variance with the laws end sdministrenve i practice of that or of the other. Contracting State, |
tec a fb) to supply information or documents which is not obtainable under the laws of in the \ 3
E normal course of the administrabon of that or of the other Contracting State, |
Doin iq ic) to supply information which would disclose ary trade, business, industrial, commercial cn or professional secre: OF trade process, of information, the disciosure of which would
| be contrary to public policy }
: 4. if information is requessee by a Contracting Siate in accordance with this Atlicle, Ihe.other | ;
= Contracting State shail use its information gathering Measures to oblain the requested i infarmation, even theugh that other State may not need euch information far is ov bax a | purposes. The obligation contained in the preceding Sanience & gubject to the limitabons of paragraph 2 but in no case shall such limitations be construed to permit & Gantracting re Sigia to decine lo suophy information solely because it has no domestic interest m “such |
a information |
He |
B | |
He | 4 inno case shall the provisions of paragraph 2 be sonstred to permit a Contracung State |
‘i in decline to supply infarmavan solely because the snfarmation is held by @ bank, otner |e
‘ime financial institulion, fominee OF person acting in an egency or a fiduciary capacity of |
: | because it relates to awnership interests in @ person i
| |
a
| |
ie l I
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: |
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i |
Fe 16 |
ra |
i | | |
Es |
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ERE A EE ee Sent ha ee ees ELL SE

4 Dan Toho a Se RAT RG ee At El ati eR ah ee A eS beg eon Pel a lp sc os
Ly
Article 27 4
ASSISTANCE IN THE COLLECTION OF TAXES 5
te
| 1, The Contracting States shall fend assistance to. each other in the collacton of revenue a claims. This assistance is not resticled by Aricies 1 and 2. The competent authorities of the Contracting States may by mutual agreement setiia the mode of application of this a
; Artiche a
; 2 The fern "revenue claim" as used in this Article means an amount owed in respect of H
be laxes of every kind and description imposed on behalbof the Contracting States, or of their ia a political subdivisions or local authorities, insofar as the taxation thereunder is not contrary a
3 lo this Agreement or any other instrument to which the Contracting States. are parties. as | KE
te will as interest, administrative penalties and costs of coliaction or conservancy related to
: such amount iE:
3 | 3. When @ revenue claim of a Contracting State is enforceable under the laws of thal State | .
¥ and is:owed bya person who, at thet time, cannot under the laws-of that State, prevent ifs |:
7 collection, that revenue claim shall, at the request of the competent authonty of that State,
| be aécepled for purposes of collection by the competent authority of the other Contracting
4 Slate. That revenue claim shall be collected by that other State in accordance wath the ; i provisions of its laws applicable to the enforcement and collection ef it Own taxes as ifthe i ravenve claim were a revenue claim of thatother State i a 4. When a revenue claim of 2 Contracting Stale is-a-claim in respect of which that State may |
i uitder ats: lew, take measures of conservancy wih @ view Jo ensure ifs collection, that j a revenue claim shall, at the request of the competent authority of that State, be. accented
% for purposes of taking measures of conservancy by the competent authority of the other
4 Contracting State. That other State shall take measures of conservancy in respect of that a fevenue claim in accordance with the provisions of its laws as if the revenve claim were a j
4 revenue claim-of that other State even if, at tha time when such measures are applied, the | /
revenue claim is not enforceable in the first-mentioned State or is owed by anerson whe i
F has a nght to prevent iis collection.
5 5. Notwithstanding the provisions of paragraphs 3 and-4, @ revenue claim accepted by a |
: Contracting State for purposes of paragraphs 3 or 4 shall not. in thal State, be subject to P
| the time limits.or accorded any priority applicable to a revenue claim under the laws of that | hs f State by reason of its nature as such. In addition. @ revenue claim accented by a ; a Contracting State for the purposes of paragraphs 3 or 4 shall not. in thal Stale, have any |
| poority apphcable to that revenue claim under the laws of the other Contracting State, a
F is a | 6. Proceedings with respect to the existence, validity or the amount of a revenue claim ota | ‘a
Contracting State shall only be brought before the courts or administrative bodies of that hi iy | slate. Nothing in this Article shall be construed as creating of providing any night io such a
: procecdings before any court or administrative body of the other Contracting State iy
2 7. Where, at any time afler a request has been made by a Contracting State under | i
: paragraphs 3 or 4 and before the other Contracting State has collected and remitted the i k | relevant revenue claim to the first-mentionad Siate, the relevant revenue claim ceases to i beats i
; | fa) in dhe case of a request. under Paragraph 3. a revenue clan of the firs!-mentioned | f
E Slate that is enforceable under ihe Jaws of that Slate and is awed by a-person who, a -
2 | nat lime, cannot, under the laws of that Slate; prevent its collection, ar | Fi
: 7 i
/ |
j | i if | |
—— . — | i eee SST 2 RT

rj £ ~
F : ai aa aS ae ee ee ee err Te ee cs exams y pe :
| I
VA 3 |
3 (pb) in the case of a request under paregrapn 4. a revenue claim ofthe first-mentioned of
State in respect of which that Slate may, under WS laws, take measures of q a: canservanicy with a view to. ensure 15 callecton | é
r
: The competent authority or ine Frsementianed State chall promptly nollty the competent =
a anihonty of the oiher State of inat fact and, at the option of the other Stale, the first i a | mentioned State shall ether eyspend of withdraw its request ; i q. In no case: shall the provisions af this Article he constued 59 35 be fiposs son's | i
2 Contracting State the obligation \g
_ ba) to- carry said administrative measures 3t yariance with the laws and adrmunislrative | ra i practice af thator of the oihner Contracting State; =:
e | ib) to cary oul measures which would be contrary [2 pe ble policy {ordre PUBIC! | |
a ic} to provide assistance if ihe other contracting Stale has not pursued all ae
= | measures of collection of sansarvancy. as the case may be. available under its Jaws |
; or administrative prachce, 4
% | (6) to provide assistance in those cases WHET the administrative Surcen for that State is | ie
A | clearly disproportionate '6 fie benefit to be dervec by the ether Contracting State. y
| a
: ere
| Article 28 ; a a MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAS POSTS | a
1 ;
= | Nathing in this Agreement shall affect the fiscal privileges of members of diplomet® T ts | eg i | or consular posts under tne ger eral rules.of iniernational law or under the Provisions ofspecil | §
P agreements | |
4 | '
te fi i | Article 29 | i
: | ENTRY INTO FORGH dl
| 4 The Gantracting States shall natity each Biher in wring, through Cipla channels, of | ty
| | the cornplation of the procedure required by ine respective laws far the eniry into force of |
: this Agreement | ; lay | 3 ‘This Agreement shall enter Into force thirty days ater He date of receipt of the taer of the | |
By | nesiicatiors refered tain paragraph 4 of this AMICIE | =
i
: | 4. The provisions of this Agreement shall have effect. | i a (a) in Croatia: respect af income Of profits ansing i" any fistal year beginning. $0 = | ce lg | after the first-day of January next following the calenee! year in which the Agreement | Fa
: anters inte force; and | l ot | (o} an India: in respect of incame arising many fiscal yea beginning on or alter the first 3
be day of Avoril meet follawing the calendar year in which ine Agreement enters inte force | fe
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pe Article 30 2
TERMINATION .
i This Agreement shail remain in force indefinitely until terminated by a Contracting State, Eriher rr
E Contracting State may terminate the Agreement, through diplomatic channels, by giving notice 2
ee af termination in writing at leas! six months before the end of any calendar year beginning =
; = after the expiration of five years from the date of entry inte force of the Agreement In such =
= event, the Agreement shall cease to have effect ‘I
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= ia) in Croatia: in respect of income or profits arising im any fiscal year beginning on oF after 7
. ie the first day of January next following the calendar year in which the notice of termination tt pa is given :
x fb) in India: in fespect of incame arising in any preweous year beginning on or after ihe 1st = | =
=| April next folowing the calendar year in which the notice of termination ts given fa cl | i i IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this :
Agreement.
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DONE in twe-ornginals at 4 aqrep _ this: 14 day of February, 2074 in the :
i Hindi, English and Croatian mnguages, all three texts being equally authentic. In case of j divergence between the texts the English text shall prevail ;
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3 FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF Hl
THE REPUBLIC OF INDIA THE REPUBLIC OF CROATIA ee ia
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E (Smt. Preneet Kaur) {Mr, Slavko Linic)
: Minister of State for External Affairs Minister of Finance
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Fi PROTOCOL i i 3
ba At the signing of the Agreement between ine Government of the Republic of Croatia.and the j or, +i i A i fy Gavernment of the Republic of India for the avoidance of Gouble taxation and tor the fe r ££ prevention of fiscal evasion with respect to taxes on income, the undersigned have agreec 4
: that the following shail form an integral part of tne Agreemeni ted
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= Ad Articles 10, 14, 42 and 13 4
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Es fa) Notwithstanding the provisions ef this Agreement 2 company resident in a Gontrachg |
=i Staté in which persons who are mot residents of thal State hold, directly or indirectly, 2 ifn
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| participation of more than SO per cent of the share caprtal, shall not be entted to. ine ‘a a | relieves provided for by the Agreement in respect of dividends, interest, royallies- and | 4
ive . . i 7 1° e.
a capitel gains arising in the other Contracting State, This provision shall not apply where q fee | the said Company is engaged in substantive business operations, other than the mere 5
a | holding of shares or property, in the Contracting State of which it isa resident a hid |
y f ia ia fb) A company which under the prececing subparagrap) would nol be entitled ta the benefits |
a. of the Agreement in respect of the aforementioned items of income, could still be granted 1
9 such benefits ifthe competent authorities of the Contracting States agree under Article 25 |
a | of the Agreement {hat the establishment of the company and the conduct of its operebons 2 |
A are founded on sqund business reasons and thus do nor nhave es iis. primary Purpose ne ef
FE obtaining of such benefits ‘|
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" IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this aa
Ne Protocol, | :
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ud DONE in ho. originals. al ee Se thine day or Peers ye Ghip !
| I eatin ee aT ES
ts | in the Croatian, Hindiand Engen larizuages, all three texts being equally euthentic. In case al Bet a | divergence between the texts the Engtisn text shar prevail |
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4 FOR THE GOVERNMENT OF FOR THE-GOVERNMENT OF 4
4 THE REPUBLIC OF INDIA THE REPUBLIG-OF CROATIA is aa hid
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4 (Smt. Prenect Kaur) (Mr. Slavko Linic} /
: Minister of State for External Affairs Minister of Finance 1
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