Direct Tax Avoidance Agreements

SUDAN

This convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year. In such case, the Convention shall cease to have effect,

(a) in India,

(i) in respect of income arising in any fiscal year beginning on or after the first day of April following the calendar year in which the notice of termination is given;

(ii) in respect of capital which is held on the last day of any fiscal year beginning on or after the first day of April following the calendar year in which the notice of termination is given;

(b) in Sweden,

(i) in respect of taxes on income, on income derived on or after the first day of January of the year next following the end of the six months' period;

(ii) in respect of tax on net wealth, for tax which is assessed in or after the second calendar year following the end of the six months' period.

In witness whereof the undersigned being duly authorised thereto have signed this convention.

Done in duplicate at New Delhi, this 24th day of June, 1997, in the Swedish, Hindi and English languages, all three texts being equally authentic. In case of divergence between the texts the English text shall be the operative one.

PROTOCOL

At the signing of the Convention between the Government of the Republic of India and the Government of the Kingdom of Sweden for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, the undesigned have agreed that the following shall form an integral part of the Convention:

With reference to article 2 :

The fees paid under the Swedish Social Security Legislation and according to the provisions of the Act (1990 : 659) on special salary tax on earned income and the Act (1991 : 687) on special salary tax on pension costs are not included in this Convention.

With reference to article 7 :

In respect of paragraphs (1) and (2) of article 7, where an enterprise of one of the Contracting States sells goods or merchandise or carries on business in the other Contracting State through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but shall, be determined only on the basis of the remuneration which is attributable to the actual activity of the permanent establishment for such sales or business. Especially, in the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enterprise has a permanent establishment, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but shall be determined only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the Contracting State where the permanent establishment is situated.

With reference to articles 10, 11 and 12 :

In respect of articles 10 (Dividends), 11 (interest) and 12 (royalties and fees for technical services) if under any Convention, agreement or protocol between India and a third State which is a member of the OECD, India limits its taxation at source on dividends, interest, royalties, or fees for technical services to a rate lower or a scope more restricted than the rate or scope provided for in this Convention on the said items of income, the same rate or scope as provided for in that Convention, agreement or protocol on the said items of income shall also apply under this Convention.

With reference to article 25 :

The taxation in India of permanent establishments of Swedish companies, shall in no case differ more from the taxation of similar Indian companies than is provided by the Indian law on the date of signature of this convention.

In witness whereof the undersigned being duly authorised thereto have signed this protocol.

(Satpal Maharaj)

Minister of State for Finance

For the Government of Republic of India

(Thomas Ostros)

Minister of Taxation

For the Government of Kingdom of Sweden

¹[With reference to Article 27:

1. A Contracting State may allow representatives of the competent authority of the other Contracting State to enter the territory of the first-mentioned Contracting State to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Contracting State shall notify the competent authority of the first-mentioned Contracting State of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Contracting State, the competent authority of the other Contracting State may allow representatives of the competent authority of the first-mentioned Contracting State to be present at the appropriate part of a tax examination in the second-mentioned Contracting State.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Contracting State conducting the examination shall, as soon as possible, notify the competent authority of the other Contracting State about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Contracting State for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Contracting State conducting the examination.]

ARTICLE 3

1. Each of the Contracting States shall notify the other, in writing, of the completion of the procedures required by its law for the entry into force of this Amending Protocol.

2. This Amending Protocol shall enter into force on the thirtieth day after the receipt of the later of these notifications and thereupon have effect forthwith.

3. This Amending Protocol shall remain in effect as long as the Convention remains in effect.

In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Amending Protocol.

Done in duplicate at Stockholm this 7^th day of Feb, 2013 in the Hindi, Swedish and English languages, all texts being equally authentic. In case of divergence between the texts, the English text shall be the operative one.

Notes:

1. Inserted vide NOTIFICATION NO. 63/2013 DATED 14-8-2013,