DTC Agreement Between India and Tanzania

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IncomeTaxDepartment
TANZANIA
Section90oftheIncometaxAct,1961Doubletaxationagreement AgreementforAvoidanceofDoubleTaxation
andPreventionofFiscalEvasionwithForeignCountriesTanzania
Whereas the annexed Agreement between the Government of the Republic of India and the Government of the Republic of
Tanzaniafortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwithrespecttotaxesonincomesignedin
Tanzaniaonthe27thdayofMay,2011shallcomeintoforceonthe12thdayofDecember,2011,beingthedateofthelaterof
thenotificationsaftercompletionoftheproceduresasrequiredbytherespectivelawsfortheentryintoforceofthisAgreement,
inaccordancewithArticle31ofthesaidAgreement.
Now, therefore, in exercise of the powers conferred by section 90 of the Incometax Act, 1961 (43 of 1961), the Central
GovernmentherebynotifiesthatalltheprovisionsofthesaidAgreementannexedheretoshallbegiveneffecttointheUnionof
Indiawitheffectfromthe1stdayofApril,2012.
NotificationNo.8/2012FT&TRII[F.No.503/02/2005FTDII]/S.O.No.303(E),dated1622012*
AGREEMENTBETWEENTHEGOVERNMENTOFTHEREPUBLICOFINDIAANDTHEGOVERNMENTOF
THEUNITEDREPUBLICOFTANZANIAFORTHEAVOIDANCEOFDOUBLETAXATIONANDTHE
PREVENTIONOFFISCALEVASIONWITHRESPECTTOTAXESONINCOME
The Government of the Republic of India and the Government of the United Republic ofTanzania, desiring to conclude an
Agreementfortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwithrespecttotaxesonincomeandwitha
viewtopromotingeconomiccooperationbetweenthetwocountries,haveagreedasfollows:
*SeealsooldAgreementvideNotificationNo.GSR559(E),dated16101981.
ARTICLE1
PERSONSCOVERED
ThisAgreementshallapplytopersonswhoareresidentsofoneorbothoftheContractingStates.
ARTICLE2
TAXESCOVERED
1.ThisAgreementshallapply totaxesonincomeimposedonbehalfofaContractingStateorofitspoliticalsubdivisionsor
localauthorities,irrespectiveofthemannerinwhichtheyarelevied.
2.Thereshallberegardedastaxesonincomealltaxesimposedontotalincome,oronelementsofincome,includingtaxeson
gains from the alienation of movable or immovable property and taxes on the total amounts of wages or salaries paid by
enterprises.
3.TheexistingtaxestowhichtheAgreementshallapplyareinparticular:
(a)
inIndia,theincometax,includinganysurchargethereon(hereinafterreferredtoas"Indiantax")
(b)
inTanzaniatheincometaxandanyothertaxonincomeimposedundertheIncomeTaxAct,Cap.262,
RevisedEdition2004(hereinafterreferredtoas"TanzanianTax")
4.ThisAgreementshallapplyalsotoanyidenticalorsubstantiallysimilartaxesthatareimposedafterthedateofsignatureof
theAgreementinadditionto,orinplaceof,theexistingtaxes.Thecompetent authoritiesoftheContractingStatesshallnotify
eachotherofanysignificantchangesthathavebeenmadeintheirrespectivetaxationlaws.
ARTICLE3
GENERALDEFINITIONS
1.ForthepurposesofthisAgreement,unlessthecontextotherwiserequires:
http://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?path=http://www.incometaxindia.gov.in/dtaa/comprehensive%20agreements/10869000000
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(a)
theterm"India"meanstheterritoryofIndiaandincludestheterritorialseaandairspaceabove
it, as well as any other maritime zone in which India has sovereign rights, other rights and
jurisdiction,accordingtotheIndianlawandinaccordancewithinternationallaw,includingthe
UnitedNationsConventionontheLawoftheSea,1982
(b)
theterm"Tanzania"meanstheUnitedRepublicofTanzaniaand,whenusedinageographical
sense,includestheterritorialseathereofaswellasanyareaoutsidetheterritorialsea,including
the continental shelf, which has been or may hereafter be designated, under the laws of
Tanzaniaandinaccordancewithinternationallaw,includingtheUnitedNationsConventionon
theLawoftheSea,1982asanareawithinwhichTanzaniamayexercise sovereignrightsor
jurisdiction
(c)
theterms"ContractingState"and"theotherContractingState"meantheRepublicofIndiaor
theUnitedRepublicofTanzaniaasthecontextrequires
(d)
the term "person" includes an individual, a company, a body of persons and any other entity
whichistreatedasataxableunitunderthetaxationlawsinforceintherespectiveContracting
States
(e)
theterm"company"meansanybodycorporateoranyentitythatistreatedasabodycorporate
fortaxpurposes
(f)
theterm"enterprise"appliestothecarryingonofanybusiness
(g)
the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State"
meanrespectivelyanenterprisecarriedonbyaresidentofaContractingStateandanenterprise
carriedonbyaresidentoftheotherContractingState
(h)
the term "international traffic" means any transport by a ship or aircraft operated by an
enterpriseofa ContractingState, except when the shiporaircraft is operated solely between
placesintheotherContractingState
(i)
theterm"tax"meansIndianorTanzaniantax,asthecontextrequires,butshallnotincludeany
amountwhichispayableinrespectofanydefaultoromissioninrelationtothetaxestowhich
thisAgreementappliesorwhichrepresentsapenaltyorfineimposedrelatingtothosetaxes
(j)
theterm"competentauthority"means:
(i) inIndia:theFinanceMinister,GovernmentofIndia,orhisauthorisedrepresentative
(ii) inTanzania: theMinisterforFinanceandEconomicAffairs,GovernmentoftheUnited RepublicofTanzaniaorhis
authorisedrepresentative
(k)
the term "national"

means:
(i) anyindividualpossessingthenationalityofaContractingState
(ii) any legal person, partnership or association deriving its status as such from the laws in force in a
ContractingState
(l)
The term "year of income"

means:
(i) inthecaseofIndia:thefinancialyearbeginningonthe1stdayofApril
(ii) inthecaseofTanzania:'theyearofincome'asdefinedunderSection20oftheIncomeTax
Act,Cap.262,RevisedEdition2004.
2.AsregardstheapplicationoftheAgreementatanytimebyaContractingState,anytermnotdefinedthereinshall,unlessthe
contextotherwiserequires,havethemeaningthatithasatthattimeunderthelawofthatStateforthepurposesofthetaxesto
whichtheAgreementapplies,andanymeaningunder theapplicabletaxlawsofthatStateprevailingoverameaninggivento
thetermunderotherlawsofthatState.
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ARTICLE4
RESIDENT
1.ForthepurposesofthisAgreement,theterm"residentofaContractingState"meansanypersonwho,underthelawsofthat
State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar
nature,andalsoincludesthatStateandanypoliticalsubdivisionorlocalauthoritythereof.Thisterm,however,doesnotinclude
anypersonwhoisliabletotaxinthatStateinrespectonlyofincomefromsourcesinthatState.
2.Wherebyreasonoftheprovisionsofparagraph1anindividualisaresidentofbothContractingStates,thenhisstatusshall
bedeterminedasfollows:
(a)
heshallbedeemedtobearesidentonlyoftheStateinwhichhehasapermanenthomeavailabletohim
ifhehasapermanenthomeavailabletohiminbothStates,heshallbedeemedtobearesidentonlyofthe
Statewithwhichhispersonalandeconomicrelationsarecloser(centreofvitalinterests)
(b)
iftheStateinwhichhehashiscentreofvitalinterestscannotbedetermined,orifhehasnotapermanent
homeavailabletohimineitherState,heshallbedeemedtobearesidentonlyoftheStateinwhichhehas
anhabitualabode
(c)
ifhehasanhabitualabodeinbothStatesorinneitherofthem,heshallbedeemedtobearesidentonlyof
theStateofwhichheisanational
(d)
ifheisanationalofbothStatesorofneitherofthem,thecompetentauthoritiesoftheContractingStates
shallsettlethequestionbymutualagreement.
3.Wherebyreasonoftheprovisionsofparagraph1apersonotherthananindividualisaresidentofbothContractingStates,
thenitshallbedeemedtobearesidentonlyoftheStateinwhichitsplaceofeffectivemanagementissituated.Whereboththe
ContractingStatesclaimtheeffectivemanagementofsuchaperson,thenthecompetentauthoritiesoftheContractingStates
shallsettlethequestionbymutualagreement.
ARTICLE5
PERMANENTESTABLISHMENT
1.ForthepurposesofthisAgreement,theterm"permanentestablishment"meansafixedplaceofbusinessthroughwhichthe
businessofanenterpriseiswhollyorpartlycarriedon.
2.Theterm"permanentestablishment"includesespecially:
(a)
aplaceofmanagement
(b)
abranch
(c)
anoffice
(d)
afactory
(e)
aworkshop
(f)
asalesoutlet
(g)
awarehouseinrelationtoapersonprovidingstoragefacilitiesforothers
(h)
afarm,plantationorotherplacewhereagricultural,forestry,plantationorrelatedactivitiesarecarriedon
and
(i)
amine,anoilorgaswell,aquarryoranyotherplaceofextractionofnaturalresources.
3.Theterm"permanentestablishment"likewiseincludes:
(a)
A building site or construction, installation or assembly project or supervisory activities in connection

therewithbutonlyifsuchsite,projectoractivitieslastmorethan270days.
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(b)
Thefurnishingofservices,includingconsultancyservices,byanenterprisethroughemployeesorother
personnelengagedbytheenterpriseforsuchpurpose,butonlywhereactivitiesofthatnaturecontinue(for
thesameorconnectedproject)withinthecountryforaperiodorperiodsaggregatingmorethan183days
withinany12monthperiod.
4.NotwithstandingtheprecedingprovisionsofthisArticletheterm"permanentestablishment"shallbedeemednottoinclude:
(a)
theuseoffacilitiessolelyforthepurposeofstorageordisplayofgoodsormerchandisebelongingtothe
enterprise
(b)
themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
storageordisplay
(c)
themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
processingbyanotherenterprise
(d)
themaintenanceofafixedplaceofbusinesssolelyforthepurposeofpurchasinggoodsormerchandiseor
ofcollectinginformation,fortheenterprise
(e)
themaintenanceofafixedplaceofbusinesssolelyforthepurposeofcarryingon,fortheenterprise,any
otheractivityofapreparatoryorauxiliarycharacter
(f)
the maintenance of a fixed place of business solely for any combination of activities mentioned in
subparagraphs(a)to(e),providedthattheoverallactivityofthefixedplaceofbusinessresultingfromthis
combinationisofapreparatoryorauxiliarycharacter.
5.Notwithstandingtheprovisionsofparagraphs1and2,whereapersonotherthananagentofanindependentstatustowhom
paragraph7appliesisactinginaContractingStateonbehalfofanenterpriseoftheotherContractingState,thatenterprise
shallbedeemedtohaveapermanentestablishmentinthefirstmentionedContractingStateinrespectofanyactivitieswhich
thatpersonundertakesfortheenterprise,ifsuchaperson:
(a)
hasandhabituallyexercisesinthatStateanauthoritytoconcludecontractsinthenameoftheenterprise,
unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised
throughafixedplaceofbusiness,wouldnotmakethisfixedplaceofbusinessapermanentestablishment
undertheprovisionsofthatparagraph,or
(b)
has no such authority, but habitually maintains in the firstmentioned State a stock of goods or
merchandisefromwhichheregularlydeliversgoodsormerchandiseonbehalfoftheenterprise
(c)
habituallysecuresordersinthefirstmentionedState,whollyoralmostwhollyfortheenterpriseitself.
6. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except in
regardtoreinsurance,bedeemedtohaveapermanentestablishmentintheotherContractingState,ifitcollectspremiumsin
theterritoryofthatotherStateorinsuresriskssituatedthereinthroughapersonotherthananagentofanindependentstatusto
whomparagraph7applies.
7.An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on
businessinthatStatethroughabroker,generalcommissionagentoranyotheragentofanindependentstatus,providedthat
such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted
whollyoralmostwhollyonbehalfof that enterprise, he will not be considered an agent of an independent status within the
meaningofthisparagraph.
8.ThefactthatacompanywhichisaresidentofaContractingStatecontrolsoriscontrolledbyacompanywhichisaresident
oftheotherContractingStateorwhichcarriesonbusinessinthatotherState(whetherthroughapermanentestablishmentor
otherwise),shallnotofitselfconstituteeithercompanyapermanentestablishmentoftheother.
ARTICLE6
INCOMEFROMIMMOVABLEPROPERTY
1.IncomederivedbyaresidentofaContractingStatefromimmovablepropertysituatedintheotherContractingStatemaybe
taxedinthatotherState.
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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 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 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
immovableproperty.
4.Theprovisionsofparagraphs1and3shallalsoapplytotheincomefromimmovablepropertyofanenterpriseandtoincome
fromimmovablepropertyusedfortheperformanceofindependentpersonalservices.
ARTICLE7
BUSINESSPROFITS
1.TheprofitsofanenterpriseofaContractingStateshallbetaxableonlyinthatStateunlesstheenterprisecarriesonbusiness
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
permanentestablishment.
2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other
ContractingStatethroughapermanentestablishmentsituatedtherein,thereshallineachContractingStatebeattributedtothat
permanentestablishmenttheprofitswhichitmightbeexpectedtomakeifitwereadistinctandseparateenterpriseengagedin
the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of
whichitisapermanentestablishment.
3.Indeterminingtheprofitsofapermanentestablishment,thereshallbeallowedasdeductionsexpenseswhichareincurredfor
thepurposesofthepermanentestablishment,includingexecutiveandgeneraladministrativeexpensessoincurred,whetherin
theStateinwhichthepermanentestablishmentissituatedorelsewhere,inaccordancewiththeprovisionsofandsubjecttothe
limitations of the tax laws of that State. However, no such deduction shall be allowed in respect of amounts, if any, paid
(otherwisethantowardsreimbursementofactualexpenses)bythepermanentestablishmenttotheheadofficeoftheenterprise
oranyofitsotheroffices,bywayofroyalties,feesorothersimilarpaymentsinreturnfortheuseofpatents,knowhoworother
rights,orbywayofcommissionorotherchargesforspecificservicesperformedorformanagement,or,exceptinthecaseof
bankingenterprises,bywayofinterestonmoneyslenttothepermanentestablishment.Likewise,noaccountshallbetaken,in
thedeterminationoftheprofitsofapermanentestablishment,foramountscharged(otherwisethantowardreimbursementof
actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of
royalties,feesorothersimilarpaymentsinreturnfortheuseofpatents,knowhoworotherrights,orbywayofcommissionor
other charges for specific services performed or for management, or, except in the case of a banking enterprise, by way of
interestonmoneyslenttotheheadofficeoftheenterpriseoranyofitsotheroffices.
4.InsofarasithasbeencustomaryinaContractingStatetodeterminetheprofitstobeattributedtoapermanentestablishment
onthebasisofanapportionmentofthetotalprofitsoftheenterprisetoitsvariousparts,nothinginparagraph2shallprecludea
Contracting State from determining the profits to be taxed by such an apportionment as may be customary the method of
apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this
Article.
5.Noprofitsshallbeattributedtoapermanentestablishmentbyreasonofthemerepurchasebythatpermanentestablishment
ofgoodsormerchandisefortheenterprise.
6.Forthepurposesoftheprecedingparagraphs,theprofitstobeattributedtothepermanentestablishmentshallbedetermined
bythesamemethodyearbyyearunlessthereisgoodandsufficientreasontothecontrary.
7. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the
provisionsofthoseArticlesshallnotbeaffectedbytheprovisionsofthisArticle.
ARTICLE8
SHIPPINGANDAIRTRANSPORT
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1.ProfitsderivedbyanenterpriseofaContractingStatefromtheoperationofshipsoraircraftininternationaltrafficshallbe
taxableinthatState.
2.Notwithstandingtheprovisionsofparagraph1,incomeofanenterpriseofoneoftheContractingStatederivedfromtheother
ContractingState,fromtheoperationofshipsininternationaltrafficmaybetaxedinthatotherContractingState,butthetax
chargeableinthatotherContractingStateonsuchincomeshallbereducedbyanamountequalto50percentofsuchtax.
3.ProfitsderivedbyatransportationenterprisewhichisaresidentofaContractingStatefromtheuse,maintenance,orrentalof
containers(includingtrailersandotherequipmentforthetransportofcontainers)usedforthetransportofgoodsormerchandise
ininternationaltrafficwhichissupplementaryorincidentaltoitsinternationaloperationsofshipsoraircraftshallbetaxable
onlyinthatContractingStateunlessthecontainersareusedsolelywithintheothercontractingState.
4. For the purposes of this Article interest on investments directly connected with the operation of ships or aircraft in
internationaltrafficshallberegardedasprofitsderivedfromtheoperationofsuchshipsoraircraftiftheyareintegraltothe
carryingonofsuchbusiness,andtheprovisionsofArticle11shallnotapplyinrelationtosuchinterest.
5.Theprovisionsofparagraph1shallalsoapplytoprofitsfromtheparticipationinapool,ajointbusinessoraninternational
operatingagency.
ARTICLE9
ASSOCIATEDENTERPRISES
1.Where:
(a)
anenterpriseofaContractingStateparticipatesdirectlyorindirectlyinthemanagement,controlorcapital
ofanenterpriseoftheotherContractingState,or
(b)
thesamepersonsparticipatedirectlyorindirectlyinthemanagement,controlorcapitalofanenterpriseof
aContractingStateandanenterpriseoftheotherContractingState,
andineithercaseconditionsaremadeorimposedbetweenthetwoenterprisesintheircommercialorfinancialrelationswhich
differ from those which would be made between independent enterprises, then any profits which would, but for those
conditions,haveaccruedtooneoftheenterprises,but,byreasonofthoseconditions,havenotsoaccrued,maybeincludedin
theprofitsofthatenterpriseandtaxedaccordingly.
2.WhereaContractingStateincludesintheprofitsofanenterpriseoftheStateandtaxesaccordinglyprofitsonwhichan
enterpriseoftheotherContractingStatehasbeenchargedtotaxinthatotherStateandtheprofitssoincludedareprofitswhich
wouldhaveaccruedtotheenterpriseofthefirstmentionedStateiftheconditionsmadebetweenthetwoenterpriseshadbeen
thosewhichwouldhavebeenmadebetweenindependententerprises,thenthatotherStateshallmakeanappropriateadjustment
totheamountofthetaxchargedthereinonthoseprofits.Indeterminingsuchadjustment,dueregardshallbehadtotheother
provisionsofthisAgreementandthecompetentauthoritiesoftheContractingStatesshallifnecessaryconsulteachother.
ARTICLE10
DIVIDENDS
1.DividendspaidbyacompanywhichisaresidentofaContractingStatetoaresidentoftheotherContractingStatemaybe
2.However,suchdividendsmayalsobetaxedintheContractingStateofwhichthecompanypayingthedividendsisaresident
andaccordingtothelawsofthatState,butifthebeneficialownerisaresidentoftheotherContractingState,thetaxsocharged
shallnotexceed:
(a)
5percentofthegrossamountofthedividendsifthebeneficialownerisacompanythatownsatleast25
percentofthesharesofthecompanypayingthedividendsor
(b)
10percentofthegrossamountofthedividendsinallothercases
Thisparagraphshallnotaffecttaxationofthecompanyinrespectoftheprofitsoutofwhichthedividendsarepaid.
3.Theterm"dividends"asusedinthisArticlemeansincomefromsharesorotherrights,notbeingdebtclaims,participatingin
profits,aswellasincomefromothercorporaterightswhichissubjectedtothesametaxationtreatmentasincomefromshares
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bythelawsoftheStateofwhichthecompanymakingthedistributionisaresident.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a
ContractingState,carriesonbusinessintheotherContractingStateofwhichthecompanypayingthedividendsisaresident,
throughapermanentestablishmentsituatedtherein,orperformsinthatotherStateindependentpersonalservicesfromafixed
basesituatedtherein,andtheholdinginrespectofwhichthedividendsarepaidiseffectivelyconnectedwithsuchpermanent
establishmentorfixedbase.InsuchcasetheprovisionsofArticle7orArticle14,asthecasemaybe,shallapply.
5.WhereacompanywhichisaresidentofaContractingStatederivesprofitsorincomefromtheotherContractingState,that
other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a ,
residentofthatotherStateorinsofarastheholdinginrespectofwhichthedividendsarepaidiseffectivelyconnectedwitha
permanentestablishmentorafixedbasesituatedinthatotherState,norsubjectthecompany'sundistributedprofitstoataxon
thecompany'sundistributedprofits,evenifthedividendspaidortheundistributedprofitsconsistwhollyorpartlyofprofitsor
incomearisinginsuchotherState.
ARTICLE11
INTEREST
1.InterestarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemaybetaxedinthatotherState.
2.However,suchinterestmayalsobetaxedintheContractingStateinwhichitarises,andaccordingtothelawsofthatState,
butifthebeneficialowneroftheinterestisaresidentoftheotherContractingState,thetaxsochargedshallnotexceed10per
centofthegrossamountoftheinterest.
3.Notwithstandingtheprovisionsofparagraph2,interestarisinginaContractingStateshallbeexemptfromtaxinthatState,
providedthatitisderivedandbeneficiallyownedby:
(a)theGovernment,apoliticalsubdivisionoralocalauthorityoftheotherContractingStateor
(b)(i)inthecaseofIndia,theReserveBankofIndia,theExportImportBankofIndia,theNationalHousingBankand
(ii)inthecaseofTanzania,theBankofTanzania,or
(c)anyotherinstitutionasmaybeagreeduponfromtimetotimebetweentheCompetentauthoritiesoftheContractingStates
throughexchangeofletters.
4.Theterm"interest"asusedinthisArticlemeansincomefromdebtclaimsofeverykind,whetherornotsecuredbymortgage
andwhetherornotcarryingarighttoparticipateinthedebtor'sprofits,andinparticular,incomefromgovernmentsecurities
andincomefrombondsordebentures,includingpremiumsandprizesattachingtosuchsecurities,bondsordebentures.Penalty
chargesforlatepaymentshallnotberegardedasinterestforthepurposeofthisArticle.
5.Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialowneroftheinterest,beingaresidentofaContracting
State,carriesonbusinessintheotherContractingStateinwhichtheinterestarises,throughapermanentestablishmentsituated
therein,orperformsinthatotherStateindependentpersonalservicesfromafixedbasesituatedtherein,andthedebtclaimin
respectofwhichtheinterestispaidiseffectivelyconnectedwithsuchpermanentestablishmentorfixedbase.Insuchcasethe
provisionsofArticle7orArticle14,asthecasemaybe,shallapply.
6.InterestshallbedeemedtoariseinaContractingStatewhenthepayerisaresidentofthatState.Where,however,theperson
payingtheinterest,whetherheisaresidentofaContractingStateornot,hasinaContractingStateapermanentestablishment
orafixedbaseinconnectionwithwhichtheindebtednessonwhichtheinterestispaidwasincurred,andsuchinterestisborne
bysuchpermanentestablishmentorfixedbase,thensuchinterestshallbedeemedtoariseintheStateinwhichthepermanent
establishmentorfixedbaseissituated.
7.Where,byreasonofaspecialrelationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsome
otherperson,theamountoftheinterest,havingregardtothedebtclaimforwhichitispaid,exceedstheamountwhichwould
havebeenagreeduponbythepayerandthebeneficialownerintheabsenceofsuchrelationship,theprovisionsofthisArticle
shallapplyonlytothelastmentionedamount.Insuchcase,theexcesspartofthepaymentsshallremaintaxableaccordingto
thelawsofeachContractingState,dueregardbeinghadtotheotherprovisionsofthisAgreement.
ARTICLE12
ROYALTIES
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1.RoyaltiesarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemaybetaxedinthatotherState.
2.However,suchroyaltiesmayalsobetaxedintheContractingStateinwhichtheyarise,andaccordingtothe laws ofthat
State,butifthebeneficialowneroftheroyaltiesisaresidentoftheotherContractingState,thetaxsochargedshallnotexceed
10percentofthegrossamountoftheroyalties.
3.Theterm"royalties"asusedinthisArticlemeanspaymentsofanykindreceivedasaconsiderationfortheuseof,ortheright
touse,anycopyrightofliterary,artisticorscientificworkincludingcinematographfilmsorfilms,tapesordiscsusedforradio
ortelevisionbroadcasting, anypatent,trademark, design or model, plan, secret formula or process, or for the use of, or the
righttouse,industrial,commercialorscientificequipment,orforinformationconcerningindustrial,commercialorscientific
experience.
4.Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialowneroftheroyalties,beingaresidentofaContracting
State,carriesonbusinessintheotherContractingStateinwhichtheroyaltiesarise,throughapermanentestablishmentsituated
therein and the right or property in respect of which the royalties are paid is effectively connected with such permanent
establishment.Insuchcase,theprovisionsofArticle7shallapply.
5.(a)RoyaltiesshallbedeemedtoariseinaContractingStatewhenthepayerisaresidentofthatState:Where,however,the
person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent
establishmentorfixedbaseinconnectionwithwhichtheliabilitytopaytheroyaltieswasincurred,andsuchroyaltiesareborne
bysuchpermanentestablishmentorfixedbase,thensuchroyaltiesshallbedeemedtoariseintheContractingStateinwhich
thepermanentestablishmentorfixedbaseissituated.
(b)Whereundersubparagraph(a)royaltiesdonotariseinoneoftheContractingStates,andtheroyaltiesrelatetotheuseof,
or the right to use, the right or property, in one of the Contracting States, the royalties shall be deemed to arise in that
ContractingState.
6.Where,byreasonofaspecialrelationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsome
otherperson,theamountoftheroyalties,havingregardtotheuse,rightorinformationforwhichtheyarepaid,exceedsthe
amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the
provisionsof thisArticle shall apply only to the lastmentioned amount. In such case, the excess part of the payments shall
remaintaxableaccordingtothelawsofeachContractingState,dueregardbeinghadtotheotherprovisionsofthisAgreement.
ARTICLE13
CAPITALGAINS
1.GainsderivedbyaresidentofaContractingState from the alienation of immovablepropertyreferred to inArticle 6 and
situatedintheotherContractingStatemaybetaxedinthatotherState.
2.Gainsfromthealienationofmovablepropertyformingpartofthebusinesspropertyofapermanentestablishmentwhichan
enterpriseofaContractingStatehasintheotherContractingStateorofmovablepropertypertainingtoafixedbaseavailableto
aresidentofaContractingStateintheotherContracting State for the purpose of performing independent personal services,
includingsuchgainsfromthealienationofsuchapermanentestablishment(aloneorwiththewholeenterprise)orofsuchfixed
base,maybetaxedinthatotherState.
3.Gainsfromthealienationofshipsoraircraftoperatedininternationaltraffic,ormovablepropertypertainingtotheoperation
ofsuchshipsoraircraftshallbetaxableonlyintheContractingStateofwhichthealienatorisaresident.
4.Gainsfromthealienationofsharesofthecapitalstockofacompanythepropertyofwhichconsistsdirectlyorindirectly
principallyofimmovablepropertysituatedinaContractingStatemaybetaxedinthatState.
5. Gains from the alienation of shares other than those mentioned in paragraph 4 in a company which is a resident of a
ContractingStatemaybetaxedinthatState.
6.Gainsfromthealienationofanypropertyotherthanthatreferredtoinparagraphs1,2,3,4and5,shallbetaxableonlyinthe
ContractingStateofwhichthealienatorisaresident.
ARTICLE14
INDEPENDENTPERSONALSERVICES
1.IncomederivedbyanindividualwhoisaresidentofaContractingStatefromtheperformanceofprofessionalservicesor
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otherindependentactivitiesofasimilarcharactershallbetaxableonlyinthatStateexceptinthefollowingcircumstanceswhen
suchincomemayalsobetaxedintheotherContractingState:
(a)
if he has a fixed base regularly available to him in the other Contracting State for the purpose of
performinghisactivitiesinthatcase,onlysomuchoftheincomeasisattributabletothatfixedbasemay
betaxedinthatotherStateor
(b)
if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the
aggregate183daysinany12monthsperiodcommencingorendingintheyearofincomeconcernedin
thatcase,onlysomuchoftheincomeasisderivedfromhisactivitiesperformedinthatotherStatemay
betaxedinthatotherState.
2.Theterm"professionalservices"includesespeciallyindependentscientific,literary,artistic,educationalorteachingactivities
aswellastheindependentactivitiesofphysicians,lawyers,engineers,architects,surgeons,dentistsandaccountants.
ARTICLE15
DEPENDENTPERSONALSERVICES
1. Subject to the provisions ofArticles 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
exercisedintheotherContractingState.Iftheemploymentissoexercised,suchremunerationasisderivedtherefrommaybe
2.Notwithstandingtheprovisionsofparagraph1,remunerationderivedbyaresidentofaContractingState in respect of an
employmentexercisedintheotherContractingStateshallbetaxableonlyinthefirstmentionedStateif:
(a)
therecipientispresentintheotherStateforaperiodorperiodsnotexceedingintheaggregate183daysin
any12monthsperiodcommencingorendingintheyearofincomeconcerned,and
(b)
theremunerationispaidby,oronbehalfof,anemployerwhoisnotaresidentoftheotherState,and
(c)
theremunerationisnotbornebyapermanentestablishmentorafixedbasewhichtheemployerhasinthe
otherState.
3.NotwithstandingtheprecedingprovisionsofthisArticle,remunerationderivedinrespectofanemploymentexercisedaboard
ashiporaircraftoperatedininternationaltraffic,byanenterpriseofaContractingStatemaybetaxedinthatState.
ARTICLE16
DIRECTORS'FEES
1.Directors'feesandothersimilarpaymentsderivedbyaresidentofaContractingStateinhiscapacityasamemberofthe
boardofdirectorsinacompanywhichisaresidentoftheotherContractingStatemaybetaxedinthatotherState.
ARTICLE17
ARTISTESANDSPORTSPERSONS
1.NotwithstandingtheprovisionsofArticles14and15,incomederivedbyaresidentofaContracting Stateasanentertainer,
suchasatheatre,motionpicture,radioortelevisionartiste,oramusician,orasasportsperson,frompersonalactivitiesassuch
exercisedintheotherContractingState,maybetaxedinthatotherState.
2.Whereincomeinrespectofpersonalactivitiesexercisedbyanentertainerorasportspersoninhiscapacityassuchaccrues
nottotheentertainerorsportspersonhimselfbuttoanotherperson,thatincomemay,notwithstandingtheprovisionsofArticles
7,14and15,betaxedintheContractingStateinwhichtheactivitiesoftheentertainerorsportspersonareexercised.
3. The provisions of paragraphs 1 and 2, shall not apply to income from activities performed in a Contracting State by
entertainersorsportspersonsiftheactivitiesaresubstantiallysupportedbypublicfundsofoneorbothoftheContractingStates
orofpoliticalsubdivisionsorlocalauthoritiesthereof.Insuchacase,theincomeshallbetaxableonlyintheContractingState
ofwhichtheentertainerorsportspersonisaresident.
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ARTICLE18
PENSIONSANDANNUITIES
Subjecttotheprovisionsofparagraph2ofArticle19,pensions,annuitiesandothersimilarremunerationpaidtoaresidentofa
ContractingStateinconsiderationofpastemploymentshallbetaxableonlyinthatState.
ARTICLE19
GOVERNMENTSERVICE
1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political sub
divisionoralocalauthoritythereoftoanindividualinrespectofservicesrenderedtothat State or subdivision or authority
shallbetaxableonlyinthatState.
(b)However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the
servicesarerenderedinthatStateandtheindividualisaresidentofthatStatewho:
(i)
isanationalofthatStateor
(ii)
didnotbecomearesidentofthatStatesolelyforthepurposeofrenderingtheservices.
2.(a)Anypensionpaidby,oroutoffundscreatedby,aContractingStateorapoliticalsubdivisionoralocalauthoritythereof
toanindividualinrespectofservicesrenderedtothatStateorsubdivisionorauthorityshallbetaxableonlyinthatState.
(b)However,suchpensionshallbetaxableonlyintheotherContractingStateiftheindividualisaresidentof,andanational
of,thatState.
3.TheprovisionsofArticles15,16,17,and18shallapplytosalaries,wagesandothersimilarremunerationandtopensionsin
respectofservicesrenderedinconnectionwithabusinesscarriedonbyaContractingStateorapoliticalsubdivisionoralocal
authoritythereof.
ARTICLE20
PROFESSORS,TEACHERSANDRESEARCHSCHOLARS
1. Notwithstanding the provisions of Article 14, a professor, teacher or research scholar who is or was a resident of the
ContractingStateimmediatelybeforevisitingtheotherContractingStateforthepurposeofteachingorengaginginresearch,or
both,atauniversity,collegeorothersimilarinstitutionasapprovedbythecompetentauthorityforthatpurposeinthatother
ContractingStateshallbeexemptfromtaxinthatotherStateonanyremunerationforsuchteachingorresearchforaperiodnot
exceedingtwoyearsfromthedateofhisfirstarrivalinthatotherStateforthatpurpose.
2.ThisArticleshallapply toincomefromresearchonlyifsuchresearchisundertakenbytheindividualinthepublicinterest
andnotprimarilyforthebenefitofsomeprivatepersonorpersonsprovidedthatsuchresearchactivitieswillbeconductedupon
requestbybeneficiaryInstitution.
3.ForthepurposesofthisArticle,anindividualshallbedeemedtobearesidentofaContractingStateifheisresidentinthat
StateintheyearofincomeinwhichhevisitstheotherContractingStateorintheimmediatelyprecedingyearofincome.
4.Forthe purposesof paragraph1, approved institution means an institution which has been approved in this regard by the
competentauthorityoftheconcernedContractingState.
ARTICLE21
STUDENTS
1.Astudentwhoisorwasa residentofoneoftheContractingStatesimmediatelybeforevisitingtheotherContractingState
andwhoispresentinthatotherContractingStatesolelyforthepurposeofhiseducationortraining,shallbesidesgrants,loans
andscholarshipsbeexemptfromtaxinthatotherStateonpaymentsmadetohimbypersonsresidingoutsidethatotherState
forthepurposesofhismaintenance,educationortraining.
2. The benefits of this Article shall extend only for such period of time as may be reasonable or customarily required to
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completetheeducationortrainingundertaken,butinnoeventshallanyindividualhavethebenefitsofthisArticle,formore
thansixconsecutiveyearsfromthedateofhisfirstarrivalinthatotherState.
ARTICLE22
OTHERINCOME
1. Items of income of a resident of a Contracting State, wherever arising, not dealt within the foregoing Articles of this
AgreementshallbetaxableonlyinthatState.
2.Theprovisionsofparagraph1shallnotapplytoincome,otherthanincomefromimmovablepropertyasdefinedinparagraph
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
connectedwithsuchpermanentestablishmentorfixedbase.InsuchcasetheprovisionsofArticle7 orArticle14,asthecase
maybe,shallapply.
3.Notwithstandingtheprovisionsofparagraph1,ifaresidentofaContractingStatederivesincomefromsourceswithinthe
otherContractingStateinformoflotteries,crosswordpuzzles,racesincludinghorseraces,cardgamesandothergamesofany
sortorgamblingorbettingofanynaturewhatsoever,suchincomemaybetaxedintheotherContractingState.
ARTICLE23
METHODSFORELIMINATIONOFDOUBLETAXATION
1. The laws in force in either of the Contracting States will continue to govern the taxation of income in the respective
ContractingStatesexceptwhereprovisionstothecontraryaremadeinthisAgreement.
2.WhenincomeissubjecttotaxinbothContractingStates,relieffromdoubletaxationshallbegivenasfollows:
(a)
InIndia:
(i) WherearesidentofIndiaderivesincomewhich,inaccordancewiththeprovisionsofthisAgreement,maybetaxed
inTanzania,Indiashallallowasadeductionfromthetaxontheincomeofthatresident,anamountequaltothetax
paidinTanzania.
Suchdeductionshallnot,however,exceedthatportionofthetaxascomputedbeforethedeductionisgiven,whichis
attributable,asthecasemaybe,totheincomewhichmaybetaxedinTanzania.
(ii) WhereinaccordancewithanyprovisionoftheAgreementincomederivedbyaresidentof Indiaisexemptfromtax
inIndia,Indiamaynevertheless,incalculatingtheamountoftaxontheremainingincomeofsuchresident,takeinto
accounttheexemptedincome.
(b)
InTanzania:
(i) Where a resident ofTanzania derives income which, in accordance with the provisions of this Agreement, may be
taxedinIndia,Tanzaniashallallowasadeductionfromthetaxontheincomeofthatresident,anamountequaltothe
taxpaidinIndia.
Suchdeductionshallnot,however,exceedthatportionofthetaxascomputedbeforethedeductionisgiven,whichis
attributable,asthecasemaybe,totheincomewhichmaybetaxedinIndia.
(ii) WhereinaccordancewithanyprovisionoftheAgreement,incomederivedbyaresidentofTanzaniaisexemptfrom
tax in Tanzania, Tanzania may nevertheless, in calculating the amount of tax on the remaining income of such
resident,takeintoaccounttheexemptedincome.
ARTICLE24
NONDISCRIMINATION
1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement
connectedtherewith,whichisotherormoreburdensomethanthetaxationandconnectedrequirementstowhichnationalsof
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thatotherStateinthesamecircumstances,inparticularwithrespecttoresidence,areormaybesubjected.Thisprovisionshall,
notwithstandingtheprovisionsofArticlel,alsoapplytopersonswhoarenotresidentsofoneorbothoftheContractingStates.
2.ThetaxationonapermanentestablishmentwhichanenterpriseofaContractingStatehasintheotherContractingStateshall
notbelessfavourablyleviedinthatotherStatethanthetaxationleviedonenterprisesofthatetherStatecarryingonthesame
activities.Thisprovisionshallnotbeconstrued asobliging a Contracting State to grant to residents of the other Contracting
Stateanypersonalallowances,reliefsandreductionsfortaxationpurposesonaccountofcivilstatusorfamilyresponsibilities
whichitgrantstoitsownresidents.ThisprevisionshallnotbeconstruedaspreventingaContractingStatefromchargingthe
profitsofapermanentestablishmentwhichacompanyoftheotherContractingStatehasinthefirstmentionedStateatarateof
taxwhichishigherthanthatimposedontheprofitsofa'similarcompanyofthefirstmentionedContractingState,norasbeing
inconflictwiththeprovisionsofparagraph3ofArticle7.
3. Except where the provisions of paragraph 1 ofArticle 9, paragraph 7 ofArticle 11, or paragraph 6 of Article 12 apply,
interest,royaltiesandotherdisbursementspaidbyanenterpriseofaContractingStatetoaresidentoftheotherContracting
Stateshall,forthepurposeofdeterminingthetaxableprofitsofsuchenterprise,bedeductibleunderthesameconditionsasif
theyhadbeenpaidtoaresidentofthefirstmentionedState.
4.EnterprisesofaContractingState,thecapitalofwhichiswhollyorpartlyownedorcontrolled,directlyorindirectly,byone
or more residents of the other Contracting State, shall not be subjected in the firstmentioned State to any taxation or any
requirementconnectedtherewithwhichisotherormore burdensome than the taxation and connected requirements to which
othersimilarenterprisesofthefirstmentionedStateareormaybesubjected.
5.TheprovisionsofthisArticleshallapplytotaxescoveredbythisAgreement.
ARTICLE25
MUTUALAGREEMENTPROCEDURE
1.WhereapersonconsidersthattheactionsofoneorbothoftheContractingStatesresultorwillresultforhimintaxationnot
in accordance with the provisions of thisAgreement, he may, irrespective of the remedies provided by the domestic law of
thoseStates,presenthiscasetothecompetentauthorityoftheContractingStateofwhichheisaresidentor,ifhiscasecomes
underparagraph1ofArticle24,tothatoftheContractingStateofwhichheisanational.Thecasemustbepresentedwithin
threeyearsfromthefirstnotificationoftheactionresultingintaxationnotinaccordancewiththeprovisionsoftheAgreement.
2.Thecompetentauthorityshallendeavour,iftheobjectionappearstoittobejustifiedandifitisnotitselfabletoarriveata
satisfactorysolution,toresolvethecasebymutualagreementwiththecompetentauthorityoftheotherContractingState,with
a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be
implementednotwithstandinganytimelimitsinthedomesticlawoftheContractingStates.
3.ThecompetentauthoritiesoftheContractingStatesshallendeavourtoresolvebymutualagreementanydifficultiesordoubts
arisingastotheinterpretationorapplicationoftheAgreement.Theymay alsoconsulttogetherfortheeliminationofdouble
taxationincasesnotprovidedforintheAgreement.
4.ThecompetentauthoritiesoftheContractingStatesmaycommunicatewitheachotherdirectlyforthepurposeofreachingan
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
authoritiesoftheContractingStates.
ARTICLE26
EXCHANGEOFINFORMATION
1.ThecompetentauthoritiesoftheContractingStatesshallexchangesuchinformation(includingdocumentsorcertifiedcopies
ofthedocuments)asisnecessaryforcarryingouttheprovisionsofthisAgreementorofthedomesticlawsconcerningtaxes
coveredbythisAgreement.TheexchangeofinformationisnotrestrictedbyArticle1.
2.AnyinformationreceivedbyaContractingStateshallbetreatedassecretinthesamemannerasinformationobtainedunder
thedomesticlawsofthatStateandshallbedisclosedonlytopersonsorauthorities(includingcourtsandadministrativebodies)
concernedwiththeassessmentorcollectionof,theenforcementorprosecutioninrespectof,orthedeterminationofappealsin
relation to the taxes referred to in paragraph 1, or to the oversight of the above. Such persons or authorities shall use the
informationonlyforsuchpurposes.Theymaydisclosetheinformationinpubliccourtproceedingsorinjudicialdecisions.
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3.Innocaseshalltheprovisionsofparagraph1and2beconstruedsoastoimposeonaContractingStatetheobligation:
(a)
tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorofthe
otherContractingState
(b)
tosupplyinformation(includingdocumentsorcertifiedcopiesofthedocuments)whichisnotobtainable
underthelawsorinthenormalcourseoftheadministrationofthatoroftheotherContractingState
(c)
to supply information which would disclose any trade, business, industrial, commercial or professional
secretortradeprocess,orinformation,thedisclosureofwhichwouldbecontrarytopublicpolicy(order
public).
4.IfinformationisrequestedbyaContractingStateinaccordancewiththisArticle,theother ContractingStateshalluseits
informationgatheringmeasurestoobtaintherequestedinformation,eventhoughthatotherstatemaynotneedsuchinformation
foritsowntaxpurposes.Theobligationcontainedintheprecedingsentenceissubjecttothelimitationsofparagraph3butin
nocaseshallsuchlimitationsbeconstruedtopermitaContractingStatetodeclinetosupplyinformationsolelybecauseithas
nodomesticinterestinsuchinformation.
5.Innocaseshalltheprovisionsofparagraph3beconstruedtopermitaContractingStatetodeclinetosupplyinformation
solely because the information is held by a bank, other financial institution, nominee or a person acting in an agency or a
fiduciarycapacityorbecauseitrelatestoownershipinterestsinaperson.
ARTICLE27
ASSISTANCEINTHECOLLECTIONOFTAXES
1.TheContractingStatesshalllendassistancetoeachotherinthecollectionofrevenueclaims.Thisassistanceisnotrestricted
by Articles 1 and 2. The competent authorities of the Contracting States may by mutual agreement settle the mode of
applicationofthisArticle.
2.Theterm"revenueclaim"asusedinthisArticlemeansanamountowedinrespectoftaxesofevery kindanddescription
imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation
thereunder is not contrary to this Convention or any other instrument to which the Contracting States are parties, as well as
interest,administrativepenaltiesandcostsofcollectionorconservancyrelatedtosuchamount.
3.WhenarevenueclaimofaContractingStateisenforceableunderthelawsofthatStateandisowedbyapersonwho,atthat
time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent
authorityofthatState,beacceptedforpurposesofcollectionbythecompetentauthorityoftheotherContractingState.That
revenueclaimshallbecollectedbythatotherStateinaccordancewiththeprovisionsofitslawsapplicabletotheenforcement
andcollectionofitsowntaxesasiftherevenueclaimwerearevenueclaimofthatotherState.
4.WhenarevenueclaimofaContractingStateisaclaiminrespectofwhichthatStatemay,underitslaw,takemeasuresof
conservancywithaviewtoensureitscollection,thatrevenueclaimshall,attherequestofthecompetentauthorityofthatState,
be accepted for purposes of taking measures of conservancy by the competent authority of the other Contracting State.That
otherStateshalltakemeasuresofconservancyinrespectofthatrevenueclaiminaccordancewiththeprovisionsofitslawsas
iftherevenueclaimwerearevenueclaimofthatotherStateevenif,atthetimewhensuchmeasuresareapplied,therevenue
claimisnotenforceableinthefirstmentionedStateorisowedbyapersonwhohasarighttopreventitscollection.
5. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State for purposes of
paragraph 3 or 4 shall not, in that State, be subject to the time limits or accorded any priority applicable to a revenue claim
underthelawsofthatStatebyreasonofitsnatureassuch.Inaddition,arevenueclaimacceptedbyaContractingStateforthe
purposesofparagraph3or4shallnot,inthatState,haveanypriorityapplicabletothatrevenueclaimunderthelawsofthe
otherContractingState.
6.Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall only be
brought before the courts or administrative bodies of that State. Nothing in this Article shall be construed as creating or
providinganyrighttosuchproceedingsbeforeanycourtoradministrativebodyoftheotherContractingState.
7. Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other
ContractingStatehascollectedandremittedtherelevantrevenueclaimtothefirstmentionedState,therelevantrevenueclaim
ceasestobe:
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(a)
inthecaseofarequestunderparagraph3,arevenueclaimofthefirstmentionedStatethatisenforceable
under the laws of that State and is owed by a person, who, at that time, cannot, under the laws of that
State,preventitscollection,or
(b)
inthecaseofarequestunderparagraph4,arevenueclaimofthefirstmentionedStateinrespectofwhich
thatStatemay,underitslaws,takemeasuresofconservancywithaviewtoensureitscollection
thecompetentauthorityofthefirstmentionedStateshallpromptlynotifythecompetentauthorityoftheotherStateofthatfact
and,attheoptionoftheotherState,thefirstmentionedStateshalleithersuspendorwithdrawitsrequest.
8.InnocaseshalltheprovisionsofthisArticlebeconstruedsoastoimposeonaContractingStatetheobligation:
(a)
tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorofthe
otherContractingState
(b)
tocarryoutmeasureswhichwouldbecontrarytopublicpolicy(ordrepublic)
(c)
toprovideassistanceiftheotherContractingStatehasnotpursuedallreasonablemeasuresofcollection
orconservancy,asthecasemaybe,availableunderitslawsoradministrativepractice
(d)
to provide assistance in those cases where the administrative burden for that State is clearly
disproportionatetothebenefittobederivedbytheotherContractingState.
ARTICLE28
LIMITATIONOFBENEFITS
1.ExceptasotherwiseprovidedinthisArticle,aperson(otherthananindividual),whichisaresident ofaContractingState
and which derives income from the other Contracting State shall be entitled to all the benefits of thisAgreement otherwise
accordedtoresidentsofaContractingStateonlyifsuchapersonhasthequalificationsasdefinedinparagraph2andmeetsthe
otherconditionsofthisAgreementfortheobtainingofanyofsuchbenefits.
2.Apersonofacontractingstateisaqualifiedpersonforayearofincomeonlyifsuchapersoniseither:
(a)
Governmentalentityor
(b)
A company incorporated in either of the

ContractingStates,if
(i)
theprincipalclassofitssharesislistedonarecognizedstockexchangeasdefinedinparagraph5ofthisArticleand
isregularlytradedononeormorerecognisedstockexchanges,or
(ii)
atleast50percentoftheaggregatevoteorvalueofthesharesinthecompanyisowneddirectlyorindirectlybyone
ormoreindividualresidentsofeitheroftheContractingStatesand/orbyotherpersonsincorporatedineitherofthe
ContractingStates,atleast50percentoftheaggregatevoteorvalueofthesharesorbeneficialinterestofwhichis
owneddirectlyorindirectlybyoneormoreindividualresidentsofeitheroftheContractingStates,or
(c)
A partnership or association of persons, at least 50 per cent or more of whose

beneficialinterestsisownedbyoneormoreindividualresidentsofeitherofthe
Contracting States or/and by other persons incorporated in either of the
ContractingStates,atleast50percentoftheaggregatevoteorvalueoftheshares
or beneficial interest of which is owned directly or indirectly by one or more
individualresidentsofeitheroftheContractingStates,or
(d)
A charitable institution or other tax exempt entity whose main activities are
carriedonineitheroftheContractingStates.
providedthatthepersonsmentionedabovewillnotbeentitledtothebenefitsoftheAgreementifmorethan50percentofthe
person'sgrossincomeforthetaxableyearispaidorpayabledirectlyorindirectlytopersonswhoarenotresidentsofeitherof
the Contracting States in the form of payments that are deductible for the purpose of computation of tax covered by this
Agreement in the person's state of residence (but not including arm's length payment in the ordinary course of business for
services or tangible property and payments in respect of financial obligations to a bank incurred in connection with a
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transactionenteredintowiththepermanentestablishmentofthebanksituatedineitheroftheContractingStates).
3.TheprovisionsofParagraph1and2shallnotapplyandaresidentofaContractingStatewillbeentitledtobenefitsofthe
AgreementwithrespecttoanitemofincomederivedfromtheotherState,ifthepersonactivelycarriesonbusinessintheState
ofresidence(otherthanthebusinessofmakingormanaginginvestmentsfortheresident'sownaccountunlesstheseactivities
arebanking,insuranceorsecurityactivities)andtheincomederivedfromtheotherContractingStatesisderivedinconnection
withorisincidentaltothatbusinessandthatresidentsatisfiestheotherconditionsofthisAgreementfortheobtainingofsuch
benefits.
4.AresidentofaContracting StateshallneverthelessbegrantedthebenefitsoftheAgreementifthe CompetentAuthorityof
theotherContractingStatedeterminesthattheestablishmentoracquisitionormaintenanceofsuchpersonandtheconductof
itsoperationsdidnothaveasoneofitsprincipalpurposestheobtainingofbenefitsundertheAgreement.
5.ForthepurposesofthisArticletheterm'recognisedstockexchange'means:
(a)
in India, a stock exchange which is for the time being recognised by the Central Government under
Section4oftheSecuritiesContracts(Regulation)Act,1956
(b)
in Tanzania, the "Dar es Salaam Stock Exchange" or any other exchange recognised by the Capital
MarketsandSecuritiesAuthorityundertheCapitalMarketsandSecuritiesAuthorityAct,Cap.79and
(c)
any other stock exchange which the CompetentAuthorities agree to recognise for the purposes of this
Article.
6. Notwithstanding anything contained in paragraphs 2 to 5 above, any person shall not be entitled to the benefits of this
Agreement,ifitsaffairswerearrangedinsuchamannerasifitwasthemainpurposeoroneofthemainpurposestoavoid
taxestowhichthisAgreementapplies.
ARTICLE29
MEMBERSOFDIPLOMATICMISSIONSANDCONSULARPOSTS
Nothing in thisAgreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the
generalrulesofinternationallaworundertheprovisionsofspecialagreements.
ARTICLE30
AMENDMENTS
1.TheContractingStatesmay,atanytime,amendthisAgreementbymutualconsentinwritingthroughthediplomaticchannel.
2. The Contracting States shall notify each other in writing, through the diplomatic channels, of the completion of the
proceduresrequiredbytherespectivelawsfortheentryintoforceoftheamendments.
3.Theamendmentsshallenterintoforceonthedateofreceiptofthelaterofthesenotifications.
ARTICLE31
ENTRYINTOFORCE
1.TheContractingStatesshallnotifyeachotherinwriting,throughdiplomaticchannels,ofthecompletionoftheprocedures
requiredbytherespectivelawsfortheentryintoforceofthisAgreement.
2.ThisAgreementshallenterintoforceonthedateofthelaterofthenotificationsreferredtoinparagraph1ofthisArticle.
3.TheprovisionsofthisAgreementshallhaveeffect:
(a)
InIndia,inrespectofincomederivedinanyyearofincomebeginningonorafterthefirstdayofApril
nextfollowingthecalendaryearinwhichtheAgreemententersintoforceand
(b)
InTanzania,inrespectofincomederivedinanyyearofincomeonorafterthe1stdayofJanuarynext
followingthecalendaryearinwhichtheAgreemententersintoforce.
4.TheAgreementbetweenthe GovernmentoftheRepublicofIndiaandtheGovernmentoftheUnitedRepublicofTanzania
fortheAvoidanceofDoubleTaxationandpreventionofFiscalevasionwithrespecttotaxesonincomesignedatDaresSalaam
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on the 5th day of September, 1979 shall cease to have effect when the provisions of this Agreement become effective in
accordancewiththeprovisionsofparagraph3.
ARTICLE32
TERMINATION
This Agreement shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may
terminatetheAgreement,throughdiplomaticchannels,bygivingnoticeofterminationatleastsixmonthsbeforetheendofany
calendaryearbeginningaftertheexpirationoffiveyearsfromthedateofentryintoforceoftheAgreement.Insuchevent,the
Agreementshallceasetohaveeffect:
(a)
In India, in respect of income derived in any year of income on or after the first day of April next
followingthecalendaryearinwhichthenoticeisgiven
(b)
InTanzania,inrespectofincomederivedinanyyearofincomeonorafterthe1stdayofJanuarynext
followingthecalendaryearinwhichsuchnoticeisgiven.
INWITNESSWHEREOFtheundersigned,dulyauthorizedthereto,havesignedthisAgreement.
DONEinduplicateatDaresSalaamthis27thdayofMay,2011,each,intheHindiandEnglishlanguages, both texts being
equallyauthentic.Incaseofdivergenceofinterpretation,theEnglishtextshallprevail.
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