DTC Agreement Between Switzerland and India

1/6/2017
IncomeTaxDepartment
SWISSCONFEDERATION
AgreementforavoidanceofdoubletaxationandpreventionoffiscalevasionwithSwissConfederation
Whereas the annexed Agreement between the Government of the Republic of India and the Government of the Swiss
Confederationfortheavoidanceofdoubletaxationwithrespecttotaxesonincomehasenteredintoforceon29thDecember,
1994, after the notification by both the Contracting States to each other of the completion of the procedures required under
theirlawsforbringingintoforceofthesaidAgreementinaccordancewithparagraph1ofArticle26ofthesaidAgreement
Now, therefore, in exercise of the powers conferred by section 90 of the Incometax Act, 1961 (43 of 1961), the Central
GovernmentherebydirectsthatalltheprovisionsofthesaidAgreementshallbegiveneffecttointheUnionofIndia.
NOTIFICATION:NO.GSR357(E),DATED2141995,ASAMENDEDBYNOTIFICATIONNO.GSR74(E),DATED72
2001ANDNOTIFICATIONNO.SO2903(E),DATED27122011*.
ANNEXURE
AGREEMENTBETWEENTHEREPUBLICOFINDIAANDTHESWISSCONFEDERATIONFORTHE
AVOIDANCEOFDOUBLETAXATIONWITHRESPECTTOTAXESONINCOME
TheGovernmentoftheRepublicofIndiaandtheSwissfederalcouncil
DesiringtoconcludeanAgreementfortheavoidanceofdoubletaxationwithrespecttotaxesonincome,
Haveagreedasfollows:
*ForearlierLimitedAgreementseeGSR761(E),dated2981958.
ARTICLE1
PERSONALSCOPE
ThisAgreementshallapplytopersonswhoareresidentsofoneorbothoftheContractingStates.
ARTICLE2
TAXESCOVERED
1.ThetaxestowhichthisAgreementshallapplyare:
(a)

(b)

inthecaseofIndia:
theIncometaxincludinganysurchargethereonand
inthecaseofSwitzerland:
thefederal,cantonalandcommunaltaxesonincome(totalincome,earnedincome,incomefromcapital,
industrialandcommercialprofits,capitalgains,andotheritemsofincome).
2.TheAgreementshallalsoapplytoanyidenticalorsubstantiallysimilartaxeswhichareimposedbyeitherContractingState
afterthedateofsignatureofthepresentAgreementinadditionto,orin placeof,thetaxesreferredtoinparagraph1ofthis
Article.
3.InthisAgreement,theterm "Indiantax"meanstaximposedbyIndia,beingtaxtowhichthisAgreementappliestheterm
"Swisstax"meanstaximposedinSwitzerland,beingtaxtowhichthisAgreementappliesandtheterm"tax"meansIndiantax
orSwisstax,asthecontextrequiresbutthetaxes in the preceding paragraphs of thisArticle do not include any penalty or
interestimposedunderthelawinforceineitherContractingStaterelatingtothetaxestowhichthisAgreementapplies.
4.ThecompetentauthoritiesoftheContractingStatesshallnotifytoeachotheranysignificantchangeswhichhavebeenmade
intheirrelevantrespectivetaxationlaws.
ARTICLE3
http://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?path=http://www.incometaxindia.gov.in/dtaa/comprehensive%20agreements/10869000000
1/31
1/6/2017
IncomeTaxDepartment
GENERALDEFINITIONS
1.InthisAgreement,unlessthecontextotherwiserequires:
1[(a)
theterm"India"meanstheterritoryofIndiaandincludestheterritorialseaandtheairspaceaboveit,aswellasany
othermaritimezoneinwhichIndiahassovereignrights,otherrightsandjurisdictions,accordingtotheIndianlaw
andinaccordancewithinternationallaw,includingtheUNConventionontheLawoftheSea]
(b) theterm"Switzerland"meanstheSwissConfederation
(c) theterms"aContractingState"and"theotherContractingState"meanIndiaorSwitzerland,asthecontextrequires
(d) theterm"person"includesanindividual,acompany,abodyofpersons,oranyotherentitywhichistaxableunder
thelawsinforceineitherContractingState
(e) theterm"company"meansanybodycorporateoranyentitywhichistreatedasacompanyunderthetaxationlaws
oftherespectiveContractingStates
(f) theterms"enterpriseofaContractingState"and"enterpriseoftheotherContractingState"mean,respectively,an
enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other
ContractingState
(g) theterm"competentauthority"means,inthecaseofIndia,theCentralGovernmentintheDepartmentofRevenueor
theirauthorisedrepresentative,and,inthecaseofSwitzerland,theDirectoroftheFederalTaxAdministrationorhis
authorisedrepresentative
(h) the term "national" means any individual possessing the nationality of a Contracting State and any legal person,
partnershiporassociationderivingitsstatusfromthelawsinforceintheContractingState
1a[(i)
theterm"internationaltraffic"meansanytransportbyashiporaircraftoperatedbyanenterpriseofaContracting
State,exceptwhentheshiporaircraftisoperatedsolelybetweenplacesintheotherContractingState]
(j) theterm"operationofaircraft"shallmeanbusinessoftransportationbyairofpassengers,mail,livestockorgoods
carriedonbytheownersorlesseesorcharterersofaircraft,includingthesaleofticketsforsuchtransportationon
behalf of other enterprises, the incidental lease of aircraft and any other activity directly connected with such
transportation
(k) theterm"fiscalyear"means:
(i)
in the case of India, the "previous year" as defined in the

IncometaxActofIndiaand
(ii)
inthecaseofSwitzerland,thecalendaryear.
2.IntheapplicationoftheprovisionsofthisAgreementbyaContractingState,anytermnotdefined thereinshall,unlessthe
contextotherwiserequires,havethemeaningwhichithasunderthelawsinforceinthatStaterelatingtothetaxeswhichare
thesubjectofthisAgreement.
1.SubstitutedbyNotificationNo.GSR74(E),dated722001.
1a.SubstitutedbyNotificationNo.SO2903(E),dated27122011.Priortoitssubstitution,subparagraph(i)readas
under:
"(i) the term "international traffic" means any transport by an aircraft operated by an enterprise of a Contracting State,
exceptwhentheaircraftisoperatedsolelybetweenplacesintheotherContractingState"
ARTICLE4
FISCALDOMICILE
1.ForthepurposesofthisAgreement,theterm"residentofaContractingState"meansanypersonwho,underthelawsofthat
State,isliabletotaxationthereinbyreasonofhisdomicile,residence,placeofincorporation,placeofmanagementoranyother
criterionofasimilarnature.
2/31
1/6/2017
IncomeTaxDepartment
2.Wherebyreasonoftheprovisionsofparagraph1,anindividualisaresidentofbothContractingStates,thenhisresidential
statusforthepurposesofthisAgreementshallbedeterminedinaccordancewiththefollowingrules:
(a)
heshallbedeemedtobearesidentoftheContractingStateinwhichhehasapermanenthomeavailable
tohim.IfhehasapermanenthomeavailabletohiminbothContractingStates,heshallbedeemedtobea
residentoftheContractingStatewithwhichhispersonalandeconomicrelationsarecloser(hereinafter
referredtoashis"centreofvitalinterests")
(b)
iftheContractingStateinwhichhehashiscentreofvitalinterestscannotbedetermined,orifhedoesnot
haveapermanenthomeavailabletohimineitherContractingState,heshallbedeemedtobearesidentof
theContractingStateinwhichhehasanhabitualabode
(c)
ifhehasanhabitualabodeinbothContractingStatesorinneitherofthemheshallbedeemedtobea
residentoftheContractingStateofwhichheisanational
(d)
if he is a national of both Contracting States or of neither of them, the competent authorities of the
ContractingStatesshallsettlethequestionbymutualagreement.
3.Wherebyreasonoftheprovisionsofparagraph1,apersonotherthananindividualisaresidentofbothContractingStates,
thenitshallbedeemedtobearesidentoftheContractingStateinwhichitsplaceofeffectivemanagementissituated.
ARTICLE5
PERMANENTESTABLISHMENT
1.ForthepurposesofthisAgreement,theterm"permanentestablishment"meansafixedplaceofbusinessthroughwhichthe
businessoftheenterprisesiswhollyorpartlycarriedon.
2.Theterm"permanentestablishment"shallincludeespecially:
(a)
aplaceofmanagement
(b)
abranch
(c)
anoffice
(d)
astoreorothersalesoutlet
(e)
afactory
(f)
aworkshop
(g)
a warehouse in relation to a person providing storage facilities for

others
(h)
apermanentsalesexhibition
(i)
amine,aquarry,anoilorgaswell,oranyotherplaceofextraction
ofnaturalresources
(j)
a building site or construction, installation or assembly project or

supervisory activities in connection therewith, where such site,
project or supervisory activity continues for a period of more than
sixmonths
(k)
aninstallationor structure used for the exploration or development

ofnaturalresourcesformorethan90daysand
1[(l)
thefurnishingoftechnicalservices,otherthanservicesasdefinedin
Article 12, within a Contracting State by an enterprise through
employeesorotherpersonnel,butonlyif:]
(i) activitiesofthatnaturecontinuewithinthatStateforaperiodorperiodsaggregatingmorethan90dayswithinany
twelvemonthperiodor
3/31
1/6/2017
IncomeTaxDepartment
(ii) theservicesareperformedwithinthatStateforarelatedenterprise(withinthemeaningofparagraph1ofArticle9)
foraperiodorperiodsaggregatingmorethan30dayswithinanytwelvemonthperiod.
3.Theterm"permanentestablishment"shallnotbedeemedtoinclude:
(a)
theuseoffacilitiessolelyforthepurposeofstorageordisplayofgoodsormerchandisebelongingtothe
enterprise
(b)
themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
storageordisplay
(c)
themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
processingbyanotherenterprise
(d)
themaintenanceofafixedplaceofbusinesssolelyforthepurposeofpurchasinggoodsormerchandiseor
forcollectinginformation,fortheenterprise
(e)
the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of
informationorforscientificresearch,beingactivitiessolelyofapreparatoryorauxiliarycharacterinthe
tradeorbusinessoftheenterprise
1[(f)
themaintenanceof a fixed place of business solely for any combination of activities mentionedinsub
paragraphs(a)to(e),providedthattheoverallactivityofthefixedplaceofbusinessresultingfromthis
combinationisofapreparatoryorauxiliarycharacter.]
1[4.Notwithstanding the preceding provisions of thisArticle, an insurance enterprise of a Contracting State shall, except in
regardtoreinsurance,bedeemedtohaveapermanentestablishmentintheotherContractingStateifitcollectspremiumsin
theterritoryofthatotherStateorinsuresriskssituatedthereinthroughapersonotherthananagentofanindependentstatusto
whomparagraph6applies.]
2[5.]ApersonactinginaContractingStatefororonbehalfofanenterpriseoftheotherContracting State 3[...otherthan an
agent of an independent status to whom paragraph 6 applies...] shall be deemed to be a permanent establishment of that
enterpriseinthefirstmentionedStateif:
(i)
hehasandhabituallyexercisesinthatState,anauthoritytonegotiateandenterintocontracts for or on
behalfoftheenterprise,unlesshisactivitiesarelimitedtothepurchaseofgoodsormerchandiseforthe
enterpriseor
(ii)
he habitually maintains in the firstmentioned Contracting State a stock of goods or merchandise from
whichheregularlydeliversgoodsormerchandisefororonbehalfoftheenterpriseor
(iii)
insoacting,hemanufacturesorprocessesinthatStatefortheenterprisegoodsormerchandisebelonging
totheenterprise,providedthatthisprovisionshallapplyonlyinrelationtothegoodsormerchandiseso
manufacturedorprocessed.
2[6.]AnenterpriseofaContractingStateshallnotbedeemedtohaveapermanentestablishmentintheotherContractingState
merelybecauseitcarriesonbusinessinthatotherStatethroughabroker,generalcommissionagentoranyotheragentofan
independentstatus,wheresuchpersonsareactingintheordinarycourseoftheirbusiness.However,whentheactivitiesofsuch
anagentaredevotedwhollyoralmostwhollyonbehalfofthatenterpriseorfortheenterpriseandotherenterpriseswhichare
controlled by it or have a controlling interest in it, he would not be considered an agent of an independent status within the
meaningofthisparagraph.
2[7.]The fact that a company, which is a resident of a Contracting State controls or is controlled by a company which is a
resident of the other Contracting State, or which carries on business in that other Contracting State (whether through a
permanentestablishmentorotherwise),shallnot,ofitself,constituteforeithercompanyapermanentestablishmentoftheother.
1.InsertedbyNotificationNo.GSR74(E),dated722001.
2.Paragraphs4to6renumberedasparagraphs5to7,respectively,bytheNotificationNo.GSR74(E),dated72
2001.
3.Substituted for "... other than an agent of an independent status to whom paragraph 5 applies...", by the
4/31
1/6/2017
IncomeTaxDepartment
NotificationNo.GSR74(E),dated722001.
ARTICLE6
INCOMEFROMIMMOVABLEPROPERTY
4[1.IncomefromimmovablepropertymayalsobetaxedintheContractingStateinwhichsuchpropertyissituated.]
2.Theterm"immovableproperty"shallbedefinedinaccordancewiththelawoftheContractingStateinwhichthepropertyis
situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in
agricultureandforestry,rightstowhichtheprovisionsofgenerallawrespectinglandedpropertyapply,usufructofimmovable
propertyandrightstovariableorfixedpaymentsasconsiderationfortheworkingof,ortherighttowork,mineraldeposits,
oilwells,quarries and other places of extraction of natural resources. Ships 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.Theprovisionsofparagraphs1and3shallalsoapplytotheincomefromimmovablepropertyofanenterprise,andtoincome
fromimmovablepropertyusedfortheperformanceofprofessionalservices.
4.Substituted,bytheNotificationNo.GSR74(E),dated722001.
ARTICLE7
BUSINESSPROFITS
5[1.Theprofits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprisecarrieson
businessintheotherContractingStatethroughapermanentestablishmentsituatedtherein.Iftheenterprisecarriesonbusiness
asaforesaid,theprofitsoftheenterprisemaybetaxedintheother State but only so muchof them as isattributable to that
permanentestablishment.]
2. Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent
establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits
whichitmightbeexpectedtomakeifitwereadistinctandseparateenterpriseengagedinthesameorsimilaractivitiesunder
thesameorsimilarconditionsanddealingwhollyindependentlywiththeenterpriseofwhichitisapermanentestablishment.
3.Inthedeterminationoftheprofitsofapermanentestablishment,thereshallbeallowedasdeductionsforexpenseswhichare
incurredforthepurposesofthepermanentestablishment,whetherintheStateinwhichthepermanentestablishmentissituated
or elsewhere. Executive and general administrative expenses shall be allowed as deductions in accordance with the taxation
lawsofthatState.Nothinginthisparagraphshall,however,authoriseadeductionforexpenseswhichwouldnotbedeductible
ifthepermanentestablishmentwereaseparateenterprise.
4.InsofarasithasbeencustomaryinaContractingStatetodeterminetheprofitstobeattributedtoapermanentestablishment
onthebasisofanappointmentofthetotalprofitsoftheenterprisetoitsvariousparts,nothinginparagraph2shallprecludethat
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 laid down in this
Article.
5.Noprofitsshallbeattributedtoapermanentestablishmentbyreasonofthemerepurchasebythatpermanentestablishment
ofgoodsormerchandisefortheenterprise.
6. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the
provisionsofthoseArticlesshallnotbeaffectedbytheprovisionsofthisArticle.
5. Substituted by Notification No.SO 2903(E), dated 27122011. Prior to its substitution, paragraph (1) read as
under:
"1. The business profits of an enterprise of a Contracting State, other than the profits from the operation of ships in
internationaltraffic,shallbetaxableonlyinthatStateunlesstheenterprisecarriesonbusinessintheotherContractingState
through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the
5/31
1/6/2017
IncomeTaxDepartment
enterprisemaybetaxedintheotherStatebutonlysomuchofthemasisdirectlyorindirectlyattributabletothatpermanent
establishment."
6[ARTICLE8
SHIPPINGANDAIRTRANSPORT
1.
Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international
trafficshallbetaxableonlyinthatState.
2.
Theprovisionsofparagraph1shallalsoapplytoprofitsfromtheparticipationinapool,ajointbusiness
oraninternationaloperatingagency.]
6.SubstitutedbyNotificationNo.SO2903(E),dated27122011.Priortoitssubstitution,Article8asamendedby
NotificationNo.GSR74(E),dated722001readasunder:
"ARTICLE8
AIRTRANSPORT
1ProfitsderivedbyanenterpriseofaContractingStatefromtheoperationofaircraftininternationaltrafficshallbetaxable
onlyinthatState.
2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an
internationaloperatingagency."
ARTICLE9
ASSOCIATEDENTERPRISES
2[1.]Where
(a)
anenterpriseofaContractingStateparticipatesdirectlyorindirectlyinthemanagement,controlorcapital
ofanenterpriseoftheotherContractingStateor
(b)
thesamepersonsparticipatedirectlyorindirectlyinthemanagement,controlorcapitalofanenterpriseof
aContractingStateandanenterpriseoftheotherContractingState,
andineithercaseconditionsaremadeorimposedbetweenthetwoenterprisesintheircommercialorfinancialrelationswhich
differfromthosewhichwouldbemadebetweenindependententerprises,thenanyprofitwhichwould,butforthoseconditions,
haveaccruedtooneoftheenterprises,but,byreasonofthoseconditions,havenotsoaccrued,maybeincludedintheprofitsof
thatenterpriseandtaxedaccordingly.
2[2.WhereaContractingStateincludesintheprofitsofanenterpriseofthatStateandtaxesaccordinglyprofitsonwhichan
enterpriseoftheotherContractingStatehasbeenchargedtotaxinthatotherStateandtheprofitssoincludedareprofitswhich
wouldhaveaccruedtotheenterpriseofthefirstmentionedStateiftheconditionsmadebetweenthetwoenterpriseshadbeen
thosewhichwouldhavebeenmadebetweenindependententerprises,thenthatotherStateshallmakeanappropriateadjustment
totheamountofthetaxchargedthereinonthoseprofits.Indeterminingsuchadjustments,dueregardshallbehadtotheother
provisionsofthisAgreementandthecompetentauthoritiesoftheContractingStatesshall,ifnecessaryconsulteachother.]
2.Inserted,byNotificationNo.GSR74(E),dated722001.
ARTICLE10
DIVIDENDS
1.DividendspaidbyacompanywhichisaresidentofaContractingStatetoaresidentoftheotherContractingStatemaybe
taxedinthatotherState.
1[2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a
6/31
1/6/2017
IncomeTaxDepartment
residentandaccordingtothelawsofthatState,butifthebeneficialownerofthedividendsisaresidentoftheotherContracting
State,thetaxsochargedshallnotexceed10percentofthegrossamountofthedividends.]
3.Theterm"dividends"asusedinthisArticlemeansincomefromshares,"jouissance"sharesor "jouissance"rights,mining
shares,founders'sharesorotherrights,notbeingdebtclaims,participatinginprofits,aswellasincomefromothercorporate
rightswhichissubjectedtothesametaxationtreatmentasincomefromsharesbythetaxationlawoftheStateofwhichthe
companymakingthedistributionisaresident.
1[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
permanentestablishment 2[orafixedbase]situatedinthatotherState,norsubjectthecompany'sundistributedprofitstoatax
onthecompany'sundistributedprofits,evenifthedividendspaidortheundisputedprofitsconsistwhollyorpartlyofprofitsor
incomearisinginsuchotherState.
ARTICLE11
INTEREST
1.InterestarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemaybetaxedinthatotherState.
1[2.However,suchinterestmayalsobetaxedintheContractingStateinwhichitarises,andaccordingtothelawsofthatState,
butifthebeneficialowneroftheinterestisaresidentoftheotherContractingState,thetaxsochargedshallnotexceed10per
centofthegrossamountoftheinterest.]
3[***]
4[5[3.]Notwithstandingtheprovisionsofparagraph2:
(a)
interestarisinginSwitzerlandandpaidtoaresidentofIndiashallbetaxableonlyinIndiaifitispaidin
respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the
Government,apoliticalsubdivision,astatutorybodyoralocalauthorityofIndiaortheExportImport
Bank of India, the Reserve Bank of India, the Industrial Finance Corporation of India, the Industrial
DevelopmentBankofIndia,theNationalHousingBank,theSmallIndustriesDevelopmentBankofIndia
orbyanyinstitutionspecifiedandagreedinlettersexchangedbetweenthecompetentauthoritiesofthe
ContractingStates]
(b)
interestarisinginIndiaandpaidtoaresidentofSwitzerlandshallbetaxableonlyinSwitzerlandifitis
paidinrespectofaloanmade,guaranteedorinsured,orcreditextended,guaranteedorinsuredunderthe
SwissprovisionsregulatingtheExportorInvestmentRiskGuaranteeorbyanyinstitutionspecifiedand
agreedinlettersexchangedbetweenthecompetentauthoritiesoftheContractingStates
5a[(c)
interestarisinginaContractingStateandpaidtoaresidentoftheotherContractingStateengagedinthe
operationofshipsoraircraftininternationaltrafficshallbetaxableonlyinthatotherStatetotheextent
thatsuchinterestispaidonfundsconnectedwithsuchactivity]
(d)
interestarisinginIndiaandpaidtoaresidentofSwitzerlandshallbeexemptfromIndiantaxiftheloanor
otherindebtednessinrespectofwhichtheinterestispaidisanapprovedloan.Theterm"approvedloan"
meansanyloanorotherindebtednessapprovedbytheGovernmentofIndiainthisbehalf.
1[4.] The term "interest" as used in this Article means income from debtclaims of every kind, whether or not secured by
mortgageandwhetherornotcarryingarighttoparticipateinthedebtor'sprofits,andinparticular,incomefromGovernment
7/31
1/6/2017
IncomeTaxDepartment
securities and income from bonds or debentures including premiums and prizes attaching to such securities, bonds or
debentures.PenaltychargesforlatepaymentshallnotberegardedasinterestforthepurposeofthisArticle.
2[1[5. ] The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent
establishmentsituatedtherein,orperformsinthatotherStateindependentpersonalservicesfromafixedbasesituatedtherein,
andthedebtclaiminrespectofwhichtheinterestispaidiseffectivelyconnectedwithsuchpermanentestablishmentorfixed
base.InsuchacasetheprovisionsofArticle7orArticle14,asthecasemaybe,shallapply.
1[6.]InterestshallbedeemedtoariseinaContractingStatewhenthepayeristhatStateitself,apoliticalsubdivision,alocal
authorityoraresidentofthatState.Where,however,thepersonpayingtheinterest,whetherheisaresidentofaContracting
Stateornot,hasinaContractingStateapermanentestablishmentorafixedbaseinconnectionwithwhichtheindebtednesson
whichtheinterestispaidwasincurred,andsuchinterestisbornebysuchpermanentestablishmentorfixedbase,then such
interestshallbedeemedtoariseintheContractingStateinwhichthepermanentestablishmentorfixedbaseissituated.]
1[7.]Where, owing to a special relationship between the payer and the beneficial owner or between both of them and some
otherperson,theamountoftheinterestpaid,havingregardtothedebtclaimforwhichitispaid,exceedstheamountwhich
wouldhavebeenagreeduponbythepayerandthebeneficialownerintheabsenceofsuchrelationship,theprovisionsofthis
Article shall apply only to the lastmentioned amount. In that case, the excess part of the payments shall remain taxable
accordingtothelawofeachContractingState,dueregardbeinghadtotheotherprovisionsofthisAgreement.
3.Paragraph3omitted,byNotificationNo.GSR74(E),dated722001.
4.Substituted,byNotificationNo.GSR74(E),dated722001.
5.Paragraph4renumberedasparagraph3,byNotificationNo.GSR74(E),dated722001.
5a.SubstitutedbyNotificationNo.SO2903(E),dated27122011.Priortoitssubstitution,subparagraph(c)read
asunder:
"(c)interestarisinginaContractingStateandpaidtoaresidentoftheotherContractingStateengagedintheoperationof
aircraft in international traffic shall be taxable only in that other State to the extent that such interest is paid on funds
connectedwithsuchactivity"
1.Paragraphs5to8renumberedasparagraphs4to7,respectively,byNotificationNo.GSR74(E),dated722001.
2.Paragraphs5and6substituted,byNotificationNo.GSR74(E),dated722001.
3[ARTICLE12
ROYALTIESANDFEESFORTECHNICALSERVICES
1.RoyaltiesandfeesfortechnicalservicesarisinginaContractingStateandpaidtoaresidentoftheotherContractingState
maybetaxedinthatotherState.
2.However,suchroyaltiesandfeesfortechnicalservicesmayalsobetaxedintheContractingStateinwhichtheyariseand
accordingtothelawsofthatStatebutifthebeneficialowneroftheroyaltiesorfeesfortechnicalservicesisaresidentofthe
other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties or the fees for
technicalservices.
3.Theterm"royalties"asusedinthisArticlemeanspaymentsofanykindreceivedasaconsiderationfortheuseof,ortheright
to use, any copyright of a literary, artistic, or scientific work, including cinematograph films or work on film, tape or other
meansofreproductionforuseinconnectionwithradioortelevisionbroadcasting,anypatenttrademark,designormodel,plan,
secret formula or process, or for the use of, or the right to use, any industrial, commercial, or scientific equipment, or for
informationconcerningindustrial,commercialorscientificexperience.
4.ForpurposesofthisArticletheterm"feesfortechnicalservices"meanspaymentsofanykindtoanypersoninconsideration
fortherenderingofanymanagerial,technicalorconsultancyservices,includingtheprovisionofservicesbytechnicalorother
personnel.
5.Notwithstandingparagraph4,"feesfortechnicalservices"doesnotincludeamountspaid:
(a)
forteachinginorbyeducationalinstitutions
8/31
1/6/2017
IncomeTaxDepartment
(b)
forservicescoveredbyArticle14orArticle15,asthecasemaybe.
6.Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialowneroftheroyaltiesorfeesfortechnicalservices,
being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or fees for
technical services arise, through a permanent establishment situated therein, or performs in that other State independent
personal services from a fixed base situated therein, and the contract in respect of which the royalties or fees for technical
services are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of
Article7orArticle14,asthecasemaybe,shallapply.
7.RoyaltiesandfeesfortechnicalservicesshallbedeemedtoariseinaContractingStatewhenthepayeristhatStateitself,a
politicalsubdivision,alocalauthorityoraresidentofthatState.Where,however,thepersonpayingtheroyaltiesorfeesfor
technicalservices,whetherheisaresidentofaContractingStateornot,hasinaContractingStateapermanentestablishment
orafixedbaseinconnectionwithwhichtheliabilitytopaytheroyaltiesorfeesfortechnicalserviceswasincurred,andsuch
royaltiesorfeesfortechnicalservicesarebornebysuchpermanentestablishmentorfixedbase,thensuchroyaltiesorfeesfor
technicalservicesshallbedeemedtoariseintheStateinwhichthepermanentestablishmentorfixedbaseissituated.]
8.Where,byreasonofaspecialrelationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsome
otherperson,theamountoftheroyaltiesorfeesfor1[technical]servicespaidexceedstheamountwhichwouldhavebeenpaid
intheabsenceofsuchrelationship,theprovisionsofthisArticleshallapplyonthelastmentionedamount.Insuchcase,the
excesspartofthepaymentsshallremaintaxableaccordingtothelawsofsuchContractingState,dueregardbeinghadtothe
otherprovisionsofthisAgreement.
1.Substitutedfor"included"byNotificationNo.GSR74(E),dated722001.
3.Headingandparagraphs1to7substituted,byNotificationNo.GSR74(E),dated722001.
ARTICLE13
CAPITALGAINS
1.GainsderivedbyaresidentofaContractingStatefromthealienationofimmovablepropertyreferredtoinArticle6and
situatedintheotherContractingStatemaybetaxedinthatotherState.
2[2.Gainsfromthealienationofmovablepropertyformingpartofthebusinesspropertyofapermanentestablishmentwhich
an enterprise of a Contracting State has in the other Contracting State, or of movable property pertaining to a fixed base
availabletoaresidentofaContractingStateintheotherContractingStateforthepurposeofperformingindependentpersonal
services,includingsuchgainsfromthealienationofsuchapermanentestablishment(aloneorwiththewholeenterprise)orof
suchfixedbase,mayalsobetaxedinthatotherState.]
2a[3.GainsderivedbyanenterpriseofaContractingStatefromthealienationofshipsoraircraftoperatedininternational
traffic,ormovablepropertypertainingtotheoperationofsuchshipsoraircraftshallbetaxableonlyinthatState.]
4.Gainsfromthealienationofsharesofacompany,thepropertyofwhichconsistsprincipallyofimmovablepropertysituated
inaContractingState,maybetaxedinthatState.
2[5. Gains from the alienation of shares other than those mentioned in Paragraph 4, of a company which is a resident of a
ContractingState:
(a)
shallbetaxableonlyintheContractingStateofwhichthealienatorisaresident
(b)
notwithstandingtheprovisionofsubparagraph(a),Indiamaytaxgainsfromthealienationofsharesina
companywhichisaresidentofIndia.
Inthiscasetheprovisionsofsubparagraph(b)ofparagraph1,ofArticle23shallapply.]
6.Gainsfromthealienationofanypropertyotherthanthatreferredtoinparagraphs1,2,3,4and5shallbetaxableonlyinthe
ContractingStateofwhichthealienatorisaresident.
2a. Substituted by Notification No. SO 2903(E), dated 27122011. Prior to its substitution, paragraph (3) read as
under:
"3. Gains from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the
9/31
1/6/2017
IncomeTaxDepartment
operationofsuchshipsoraircraft,shallbetaxableonlyintheContractingStateinwhichtheplaceofeffectivemanagement
oftheenterpriseissituated."
3[ARTICLE14
INDEPENDENTPERSONALSERVICES
1.IncomederivedbyaresidentofaContractingStateinrespectofprofessionalservicesorotheractivitiesofanindependent
charactershallbetaxableonlyinthatStateexceptinthefollowingcircumstances,whensuchincomemayalsobetaxedinthe
otherContractingState:
(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 State is for a period or periods aggregating 183 days or more in any 12 month
periodcommencingorendinginthefiscalyearconcernedinthatcase,onlysomuchoftheincomeasis
derivedfromhisactivitiesperformedinthatotherStatemaybetaxedinthatotherState.
2.Theterm"professionalservices"includesespeciallyindependentscientific,literary,artistic,educationalorteachingactivities
aswellastheindependentactivitiesofphysicians,lawyers,engineers,architects,surgeons,dentistsandaccountants.]
1[2[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
taxedinthatotherState.
2.Notwithstandingtheprovisionsofparagraph1,remunerationderivedbyaresidentofaContractingState in respect of an
employmentexercisedintheotherContractingStateshallbetaxableonlyinthefirstmentionedStateif:
(a)
therecipientispresentintheotherStateforaperiodorperiodsnotexceedingintheaggregate183daysin
any12monthperiodcommencingorendinginthefiscalyearconcerned,and
(b)
theremunerationispaidby,oronbehalfof,anemployerwhoisnotaresidentoftheotherState,and
(c)
theremunerationisnotbornebyapermanentestablishmentorafixedbasewhichtheemployerhasinthe
otherState.
3.NotwithstandingtheprecedingprovisionsofthisArticle,remunerationderivedinrespectofanemploymentexercisedaboard
ashiporaircraftoperatedininternationaltraffic,byanenterpriseofaContractingStatemaybetaxedinthatState.]
1.Article14renumberedasarticle15,byNotificationNo.GSR74(E),dated722001
3[ARTICLE16]
DIRECTORS'FEES
Directors'feesandsimilarpaymentsderivedbyaresidentofaContractingStateinhiscapacityasamemberoftheBoardof
DirectorsofacompanywhichisaresidentoftheotherContractingStateshallbetaxableonlyinthatotherContractingState.
3.Articles15to18renumberedasarticles16to19,byNotificationNo.GSR74(E),dated722001
10/31
1/6/2017
IncomeTaxDepartment
3[ARTICLE17]
ARTISTESANDATHLETES
1.NotwithstandingtheprovisionsofArticles7and14,incomederivedbyentertainers(suchasstage,motionpicture,radioor
televisionartistesandmusicians)orathletes,fromtheirpersonalactivitiesassuchshallbetaxableonlyintheContractingState
inwhichtheseactivitiesareexercised.
2.WhereincomeasaresultofpersonalactivitiesassuchexercisedinaContractingStatebyanentertainerorathleteaccrues
nottothatentertainerorathletehimselfbuttoanotherperson,thatincomemay,notwithstandingtheprovisionsofArticles7
and14,betaxedinthatContractingState.
3.The provisions ofparagraphs 1 and 2 shall not apply if the visit to a Contracting State of the entertainer or the athlete is
directly or indirectly supported, wholly or substantially, from the public funds of the other Contracting State, including any
politicalsubdivision,localauthorityorstatutorybodyofthatotherState.
3[ARTICLE18]
PENSIONANDANNUITIES
1.Anypension(otherthanapensionreferredtoinArticle18)orannuityderivedbyaresidentofaContractingStateshallbe
taxableonlyinthatState.
2.Theterm"pension" means a periodic payment made in consideration of past employment or by way ofcompensationfor
injuriesreceivedinthecourseoftheperformanceofservices.
3.Theterm"annuity"meansstatedsumpayableperiodicallyatstatedtimes,duringlifeorduringaspecifiedorascertainable
periodoftime,underanobligationtomakethepaymentsinreturnforadequateandfullconsiderationinmoneyormoney's
worth.
3[ARTICLE19]
GOVERNMENTREMUNERATIONANDPENSIONS
1.Remuneration,otherthanapension,paidbytheGovernmentofaContractingStatetoanyindividualwhoisacitizenof
that State in respect of services rendered in the discharge of governmental functions in the other Contracting State shall be
taxableonlyinthefirstmentionedState.
2.AnypensionpaidbytheGovernmentofaContractingStatetoanyindividualinrespectofservicesrenderedshallbetaxable
onlyinthatContractingState.
3.Theprovisionsofparagraphs1and2ofthisArticleshallnotapplytopaymentsinrespectofservicesrenderedinconnection
withanybusinesscarriedonbytheGovernmentofeitheroftheContractingStatesforthepurposeofprofit.
4. For the purposes of this Article, the term "Government" shall include any State Government, canton or local or statutory
authorityofeitherContractingStateandinparticulartheReserveBankofIndiaandtheSwissNationalBank.
1[ARTICLE20]
STUDENTSANDAPPRENTICES
1.PaymentswhichastudentorbusinessapprenticewhoisorwasimmediatelybeforevisitingaContractingStatearesidentof
theotherContractingStateandwhoispresentinthefirstmentionedStatesolelyforthepurposeofhiseducationortraining
receivesforthepurposeofhismaintenance,educationortrainingshallnotbetaxedinthatState,providedthatsuchpayments
arisefromsourcesoutsidethatState.
11/31
1/6/2017
IncomeTaxDepartment
2. In respect of grants, scholarships and remuneration from employment not covered by paragraph 1, a student or business
apprentice described in paragraph 1 shall, in addition, be entitled during such education or training to the same exemptions,
reliefsorreductionsinrespectoftaxesavailabletoresidentsoftheStatewhichheisvisiting.
1.Articles19and20renumberedasarticles20and21byNotificationNo.GSR74(E),dated722001.
1[ARTICLE21]
PROFESSORS,TEACHERSANDRESEARCHERS
1.Anindividualwhoisor wasaresidentofaContractingStateandwhovisitstheotherContractingStateforaperiodnot
exceeding24monthsfortheprimarypurposeofteachingorengaginginresearch,orboth,atauniversityorotherrecognised
educational institution shall be exempt from tax in that other Contracting State on his income from personal services for
teachingorresearchattheuniversityortherecognisededucationalinstitution.
2.ThisArticle shall not apply to income from research if such research is undertaken primarily for the private benefit of a
specificpersonorpersons.
1.Articles19and20renumberedasarticles20and21byNotificationNo.GSR74(E),dated722001.
2[ARTICLE22
OTHERINCOME
1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoingArticles 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
otherContractingStateintheformoflotteries,crosswordpuzzles,racesincludinghorseraces,cardgamesandothergamesof
anysortorgamblingorbettingofanyformornaturewhatsoever,suchincomemaybetaxedinthatotherContractingState.]
3[ARTICLE23]
ELIMINATIONOFDOUBLETAXATION
1.(a)SubjecttoanyprovisionsofthelawofIndiawhichmayfromtimetotimebeinforceandwhichrelatestothereliefof
taxespaidinacountryoutsideIndia,wherearesidentofIndiaderivesincomewhich,inaccordancewiththeprovisionsofthis
Agreement,maybetaxedinSwitzerland,Indiashallallowasadeductionfromthetaxontheincomeofthatresidentanamount
equaltotheincometaxpaidinSwitzerlandwhetherdirectlyorbydeduction.Suchdeductionshallnot,however,exceed that
partoftheincometax(ascomputedbeforethedeductionisgiven)whichisattributabletotheincomewhichmaybetaxedin
Switzerland.
(b)WherearesidentofSwitzerlandderivesgainsfromthealienationofshareswhichmaybetaxedinIndiaaccordingtoArticle
13,paragraph5,subparagraph(b),Indiashallallowasadeductionfromtaxonthatincome,anamountequaltotheincometax
paidinSwitzerlandonthesecapitalgains.Thedeductionshallnot,however,exceedthatpartoftheIndianincometax,whichis
imposedonthesecapitalgains.
2.(a)WherearesidentofSwitzerlandderivesincomewhich,inaccordancewiththeprovisionsofthisAgreementmaybetaxed
inIndia,Switzerlandshall,subjecttotheprovisionsofsubparagraphs(b),(c)4[***]exemptsuchincomefromtaxbutmay,
in calculating tax on the remaining income of that resident, apply the rate of tax which would have been applicable, if the
12/31
1/6/2017
IncomeTaxDepartment
exempted income had not been so exempted : provided, however, that such exemption shall apply to gains referred to in
paragraphofArticle13onlyifactualtaxationofsuchgainsinIndiaisdemonstrated.
(b)WherearesidentofSwitzerlandderivesdividends,interest,royaltiesorfeesfor 1[technical]serviceswhich,inaccordance
with the provisions ofArticles 10, 11 and 12, may be taxed in India, Switzerland shall allow, upon request, a relief to such
resident.Thereliefmayconsistof,
(i)
acreditfromtheSwisstaxontheincomeofthatresidentofanamountequaltothetaxleviedinIndiain
accordancewiththeprovisionsofArticles10,11and12,suchcreditshallnot,however,exceedthatpart
oftheSwisstax,ascomputedbeforethecreditisgiven,whichisappropriatetotheincomewhichmaybe
taxedinIndiaor
(ii)
alumpsumreductionoftheSwisstaxor
(iii)
apartialexemptionofsuchdividends,interest,royaltiesorfeesfortechnicalservicesfromSwisstax,in
any case consisting at least of the deduction of the tax levied in India from the gross amount of the
dividends,interest,royaltiesorfeesfortechnicalservices.
SwitzerlandshalldeterminetheapplicablereliefandregulatetheprocedureinaccordancewiththeSwissprovisionsrelatingto
thecarryingoutofinternationalConventionsoftheSwissConfederationfortheavoidanceofdoubletaxation.
(c)2[***]
3[***]
4."and(d)"omitted,byNotificationNo.GSR74(E),dated722001.
1.Substitutedfor"included"byNotificationNo.GSR74(E),dated722001.
2.Subparagraph(c)omittedbyNotificationNo.GSR74(E),dated722001.
3.OmittedbyNotificationNo.SO2903(E),dated27122011.Priortoitsomission,subparagraph(c)asamended
byNotificationNo.GSR74(E),dated722001,readasunder:
"(c)WherearesidentofSwitzerlandderivesinterestdealtwithinsections10(4),10(4B),10(15)(iv)and80LoftheIndian
IncometaxAct, 1961 (43 of 1961) and referred to in subparagraph (d )ofparagraph 3 ofArticle 11, Switzerland shall
allow,uponrequest,arelieftosuchresidentofanamountequalto10percentofthegrossamountoftheinterest."
5[ARTICLE24]
NONDISCRIMINATION
6[1.NationalsofaContractingStateshallnotbesubjectedintheotherContractingStatetoanytaxationoranyrequirement
connectedtherewithwhichisotherormoreburdensomethanthetaxationandconnectedrequirementstowhichnationalsofthat
other State in the same circumstances and under the same conditions are or may be subjected. This provision shall,
notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting
States.]
6a[2.ThetaxationonapermanentestablishmentwhichanenterpriseofaContractingStatehasintheotherContractingState
shallnotbelessfavourablyleviedinthatotherStatethanthetaxationleviedonenterprisesofthatotherStatecarryingonthe
same activities. This provision shall not be construed as obliging a Contracting State to grant to resident of the other
Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family
responsibilitieswhichitgrantstoitsownresidents.]
7[3.ExceptwheretheprovisionsofArticle9,paragraph7ofArticle11,orparagraph8ofArticle12, apply,interest,royalties
andotherdisbursementspaidbyanenterpriseofaContractingStatetoaresidentoftheotherContractingStateshall,forthe
purposeofdeterminingthetaxableprofitsofsuchenterprise,bedeductibleunderthesameconditionsasiftheyhadbeenpaid
toaresidentofthefirstmentionedState.]
8[4.]EnterprisesofaContractingState,thecapitalofwhichiswhollyorpartlyownedorcontrolled,directlyorindirectly,by
one or more residents of the other Contracting State, shall not be subjected in the firstmentioned Contracting State to any
taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected
13/31
1/6/2017
IncomeTaxDepartment
requirementstowhichothersimilarenterprisesofthatfirstmentionedStateareormaybesubjectedinthesamecircumstances
andunderthesameconditions.
8[5.]InthisArticle,theterm"taxation"meanstaxeswhicharethesubjectofthisAgreement.
5.Article22renumberedasarticle24,byNotificationNo.GSR74(E),dated722001.
6a. Substituted by Notification No. SO 2903(E), dated 27122011. Prior to its substitution, paragraph (2) read as
under:
"2.NothingcontainedinthisArticleshallbeconstruedasobligingaContractingStatetograntto personsnotresidentsin
thatStateanypersonalallowances,reliefsandreductionsfortaxationpurposeswhicharebylawavailableonlytopersons
whoaresoresident."
8.Existingparagraphs3and4renumberedasparagraphs4and5,byNotificationNo.GSR74(E),dated722001.
9[ARTICLE25]
MUTUALAGREEMENTPROCEDURE
1.WherearesidentofaContracting StateconsidersthattheactionsofoneorbothoftheContractingStatesresultorwill
resultforhimintaxationnotinaccordancewiththisAgreement,hemay,notwithstandingtheremediesprovidedbythenational
lawsofthoseStates,presenthiscasetothecompetentauthorityoftheContractingStateofwhichheisaresident.Thecase
mustbepresentedwithinthreeyearsfromthefirstnotificationoftheactiongivingrisetotaxationnotinaccordancewiththe
Agreement.
2.Thecompetentauthorityshallendeavour,iftheobjectionappearstoittobejustifiedandifitisnotitselfabletoarriveatan
appropriatesolution,toresolvethecasebymutualagreementwiththecompetentauthorityoftheotherContractingState,with
aviewtotheavoidanceoftaxationwhichisnotinaccordancewiththeAgreement.
3.ThecompetentauthoritiesoftheContractingStatesshallendeavourtoresolvebymutualagreementanydifficultiesordoubts
arisingastotheinterpretationorapplicationoftheAgreement.Theymay alsoconsulttogetherfortheeliminationofdouble
taxationincasesnotprovidedforintheAgreement.
4.ThecompetentauthoritiesoftheContractingStatesshallsettlethelimitationsprovidedforinArticles10,11and12.
5.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.
9.Article23renumberedasarticle25,byNotificationNo.GSR74(E),dated722001.
10[ARTICLE26
EXCHANGEOFINFORMATION
1.ThecompetentauthoritiesoftheContractingStatesshallexchangesuchinformationasisforeseeablyrelevantforcarrying
outtheprovisionsofthisAgreementortotheadministrationorenforcementofthedomesticlawsconcerningtaxescoveredby
theAgreementinsofarasthetaxationthereunderisnotcontrarytotheAgreement.Theexchangeofinformationisnotrestricted
byArticle1.
2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as
information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including
courtsandadministrativebodies)concernedwiththeassessmentorcollectionoftheenforcementorprosecutioninrespectof,
orthedeterminationofappealsinrelationtothetaxesreferredtoinparagraph1,ortheoversightoftheabove.Suchpersons
orauthoritiesshallusetheinformationonlyforsuchpurposes.Theymaydisclosetheinformationinpubliccourtproceedings
or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other
purposeswhensuchinformationmaybeusedforsuchotherpurposesunderthelawsofbothStatesandthecompetentauthority
14/31
1/6/2017
IncomeTaxDepartment
ofthesupplyingStateauthorisessuchuse.
3.Innocaseshalltheprovisionsofparagraphs1and2beconstruedsoastoimposeonaContractingStatetheobligation:
(a)
tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorof
theotherContractingState
(b)
tosupplyinformationwhichisnotobtainableunderthelawsorinthenormalcourseoftheadministration
ofthatoroftheotherContractingState
(c)
to supply information which would disclose any trade, business, industrial, commercial or professional
secretortradeprocess,orinformationthedisclosureofwhichwouldbecontrarytopublicpolicy(ordre
public).
4.IfinformationisrequestedbyaContractingStateinaccordancewiththisArticle,theotherContractingStateshalluseits
information gathering measures to obtain the requested information, even though that other State may not need such
information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of
paragraph3butinnocaseshallsuchlimitationsbeconstruedtopermitaContractingStatetodeclinetosupplyinformation
solelybecauseithasnodomesticinterestinsuchinformation.
5.Innocaseshalltheprovisionsofparagraph3beconstruedtopermitaContractingStatetodeclinetosupplyinformation
solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a
fiduciary capacity or because it relates to ownership interests in a person. In order to obtain such information, the tax
authoritiesoftherequestedContractingStateshall,therefore,havethepowertoenforcethedisclosureofinformationcovered
bythisparagraph,notwithstandingparagraph3oranycontraryprovisionsinitsdomesticlaws.]
10.SubstitutedbyNotificationNo.SO2903(E),dated27122011.Priortoitssubstitution,Article26asamendedby
NotificationNo.GSR74(E),dated722001readasunder:
"ARTICLE26
EXCHANGEOFINFORMATION
1.ThecompetentauthoritiesoftheContractingStatesshallexchangesuchinformation(beinginformationwhichisattheir
disposal under their respective taxation laws in the normal course of administration) as is necessary for carrying out the
provisionsofthisAgreementinrelationtothetaxeswhicharethesubjectofthisAgreement.Anyinformationsoexchanged
shall be treated as secret and shall not be disclosed to any persons other than those concerned with the assessment and
collection of the taxes which are the subject of thisAgreement. No information as aforesaid shall be exchanged which
woulddiscloseanytrade,business,industrialorprofessionalsecretortradeprocess.
2. In no case shall the provisions of this Article be construed as imposing upon either of the Contracting States the
obligationtocarryoutadministrativemeasuresatvariancewiththeregulartionsandpracticeofeitherContractingStateor
whichwouldbecontrarytoitssovereignty,securityorpublicpolicyortosupplyparticularswhicharenotprocurableunder
itsownlegislationorthatoftheStatemakingapplication."
1[ARTICLE27]
DIPLOMATICANDCONSULAROFFICIALS
Nothing in this Agreement shall affect the fiscal privileges of diplomatic or consular officials under the general rules of
internationallaworundertheprovisionsofspecialagreements.
1.Articles24to27renumberedasarticles26to29,respectively,byNotificationNo.GSR74(E),dated722001.
1[ARTICLE28]
ENTRYINTOFORCE
1.ThisAgreementshallcome intoforcewhentheContractingStateshavenotifiedeachotherthroughdiplomaticchannels
thatalllegalrequirementsandproceduresforgivingeffecttothisAgreementhavebeensatisfied.
15/31
1/6/2017
IncomeTaxDepartment
2.ThisAgreementshallenterintoforceuponthedateofsuchnotificationanditsprovisionsshallhaveeffect:
(a)
inIndia,inrespectofincomearisinginanyfiscalyearbeginningonorafterthefirstdayofAprilnext
followingthecalendaryearinwhichtheAgreemententersintoforceand
(b)
in Switzerland, in respect of income arising in any fiscal year beginning on or after the first day of
JanuarynextfollowingthecalendaryearinwhichtheAgreemententersintoforce.
3. TheAgreement between the Government of India and the Swiss Federal Council concerning the taxation of enterprises
operateaircraftsignedatNewDelhionAugust28,1958(inthisArticlecalled "the1958Agreement")shallceasetohaveeffect
withrespecttotaxestowhichtheAgreement applieswhentheprovisionsofthisAgreementbecomeeffectiveinaccordance
withparagraph2.
4.The1958Agreementshallterminateontheexpirationofthelastdateonwhichithaseffectinaccordancewiththeforegoing
provisionsofthisArticle.
1[ARTICLE29]
TERMINATION
ThisAgreementshallcontinueineffectindefinitelybuteitherofthe ContractingStatesmay,onorbeforethethirtiethdayof
June in any calendar year, give notice of termination to the other Contracting State and, in such event, thisAgreement shall
ceasetobeeffective:
(a)
followingthecalendaryearinwhichthenoticeofterminationisgivenand
(b)
Januarynextfollowingthecalendaryearinwhichthenoticeofterminationisgiven.
INWITNESSWHEREOFtheundersigned,beingdulyauthorisedthereto,havesignedthepresentAgreement.
DONEinduplicateatNewDelhithis2nddayofNovember,onethousandninehundredandninetyfourintheHindi,German,
andEnglishlanguages,allthetextsbeingequallyauthentic,exceptinthecaseofdoubtwhentheEnglishtextshallprevail.
FortheGovernmentof
theRepublicofIndia:.
Sd/
FortheSwiss
FederalCouncil:
Sd/
JUDICIALANALYSIS
SeeAdvanceRulingP.No.8of1995,Inre[1997]90Taxman47(AARNewDelhi)
PROTOCOL
TotheAgreementbetweentheRepublicofIndiaandtheSwissConfederationfortheavoidanceofdoubletaxationwithrespect
totaxesonincome.
At the signing of theAgreement concluded today between the Government of the Republic of India and the Swiss Federal
Councilfortheavoidanceofdoubletaxationwithrespecttotaxesonincome,theundersignedhaveagreeduponthefollowing
additionalprovisionswhichshallformanintegralpartofthesaidAgreement.
11[1.WithreferencetoArticle4
Itisunderstoodthatparagraph1ofArticle4,theterm"residentofaContractingState"includesarecognizedpensionfundor
pension scheme in that Contracting State. It is further understood that a recognized pension fund or pension scheme of a
ContractingStateshallberegardedasanypensionfundorpensionschemerecognizedandcontrolledaccordingtostatutory
provisions of that State, which is generally exempt from income taxation in that State and which is operated principally to
administerorprovidepensionorretirementbenefits.]
16/31
1/6/2017
IncomeTaxDepartment
WithreferencetoArticle5
12[2.]Itisunderstoodthat the remuneration for furnishing of services covered by subparagraph (1) of paragraph 2 shall be
taxedaccordingtoArticle7or,onrequestoftheenterprise,accordingtothe ratesprovidedfor....., 1[inparagraph2ofArticle

12].
With respect to paragraph 3 ofArticle 5, it is understood that the maintenance of a stock of goods or merchandise for the
purpose of delivery, or facilities used for delivery of goods and merchandise do not constitute a permanent establishment as
longastheconditionsofparagraph2or4ofthesameArticlearenotfulfilled.
2[Withrespecttoparagraph5]ofArticle5,itisunderstoodthatapersonwhohabituallysecuresorders inaContractingState
whollyoralmostwhollyfortheenterpriseitself,shallbedeemedtobeapermanentestablishmentofthatenterpriseonlyifsuch
person habitually represents to persons offering to buy goods or merchandise that acceptance of an order by such person
constitutes that agreement of the enterprise to supply goods or merchandise under the terms and conditions specified in the
order.
13[2.***]
14 [3. ] In the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific
equipment or premises, or of public works, which are carried out by an enterprise having a permanent establishment, in a
ContractingStatethebusinessprofitsofsuchpermanentestablishmentshallnotbedeterminedonthebasisofthetotalamount
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 State where the permanent establishment is situated the profits related to that part of the
contractwhichiscarriedoutoutsidethatContractingStatebytheheadofficeoftheenterpriseshallbetaxableonlyintheState
ofwhichtheenterpriseisaresident,providedthattheamountpayableisnotcoveredundertheprovisionsofArticle12.
1[Withreferencetoparagraph2ofArticle9
15[4.] It is understood that Switzerland shall only make an appropriate adjustment after consultation with the competent
authorityofIndiaandafterreachinganagreementontheadjustmentsofprofitsinbothContractingStates.]
2[WithreferencetoArticles10,11and12
16[5.WithreferencetoArticles10,11,12and22
The provisions of Articles 10, 11, 12 and 22 shall not apply in respect to any dividend, interest, royalty, fees for technical
servicesorotherincomepaidunder,oraspartofaconduitarrangement.Theterm"conduitarrangement"meansatransaction
orseriesoftransactionswhichisstructuredinsuchawaythataresidentofaContractingStateentitledtothebenefitsofthe
AgreementreceivesanitemofincomearisingintheotherContractingStatebutthatresidentpays,directlyorindirectly,allor
substantiallyallofthatincome(atanytimeorinanyform)toanotherpersonwhoisnotaresidentofeitherContractingState
andwho,ifitreceivedthatitemofincomedirectlyfromtheotherContractingState,wouldnotbeentitledunderaConvention
ofAgreementfortheavoidanceofdoubletaxationbetweentheStateinwhichthatotherpersonisresidentandtheContracting
Stateinwhichtheincomearises,orotherwise,tobenefitswithrespecttothatitemofincomewhichareequivalentto,ormore
favourable than, those available under this Agreement to a resident of a Contracting State and the main purpose of such
structuringisobtainingbenefitsunderthisAgreement.
InrespectofArticles10(Dividends),11(Interest)and12(Royaltiesandfeesfortechnicalservices),ifunderanyConvention,
Agreement or Protocol between India and a third State which is a member of the OECD signed after the signature of this
AmendingProtocol,Indialimitsitstaxationatsourceondividends,interest,royaltiesorfeesfortechnicalservicestoarate
lower than the rate provided for in this Agreement on the said items of income, the same rate as provided for in that
Convention,AgreementorProtocolonthesaiditemsofincomeshallalsoapplybetweenbothContractingStatesunder this
AgreementasfromthedateonwhichsuchConvention,AgreementorProtocolentersintoforce.
IfafterthedateofsignaturethisAmendingProtocol,Indiaunderany Convention,Agreementor Protocol with a third State
whichisamemberoftheOECD,restrictsthescopeinrespectofroyaltiesorfeesfortechnicalservicesthanthescopeforthese
itemsofincomeprovidedforinArticle12ofthisAgreement,thenSwitzerlandandIndiashallenterintonegotiationswithout
unduedelayinordertoprovidethesametreatmenttoSwitzerlandasthatprovidedtothethirdState.]
4[Withreferencetosubparagraph(b)ofparagraph5ofArticle13
17[6.]ItisunderstoodthatifatalaterstageSwitzerlandshallintroduceacapitalgainstaxonthealienationofsharesofaSwiss
companyotherthansharesofacompanymentionedinparagraph4,paragraph5ofArticle13shallbereplacedbythefollowing
17/31
1/6/2017
IncomeTaxDepartment
:
"5.Gainsfromthealienationofsharesotherthanthosementionedin paragraph 4 in a company which is aresidentofa
ContractingStatemaybetaxedinthatState."
Inthiscasesubparagraph(b)ofparagraph1ofArticle23oftheAgreementshallbedeleted.]
18[7.]Itisunderstoodthatgainsderivedfromthealienationofarightorapropertymentionedinparagraph3ofArticle12may
betaxedaccordingtoArticle7orArticle13.However,gainsderived fromthealienationofanysuchrightorpropertywhich
arecontingentontheprofits,productivityorusethereofmaybetaxedaccordingtoArticle12.
19[8.Withreferencetoparagraph2ofArticle24
Itisunderstoodthattheprovisionsofparagraph2ofArticle24shallnotbeconstruedaspreventingaContractingStatefrom
chargingtheprofitsofapermanentestablishmentwhichacompanyoftheotherContractingStatehasinthefirstmentioned
StateatarateoftaxwhichishigherthanthatimposedontheprofitsofasimilarcompanyofthefirstmentionedContracting
State, nor as being in conflict with the provisions of paragraph 3 of Article 7. However the difference in tax rate shall not
exceed10percentagepoints.]
7[WithreferencetoArticle25]
20[9.]Withrespecttoparagraph2itisunderstoodthatifthemutualagreementprocedurehasbeenintroducedwithinfiveyears
fromthemomentwhenthetaxassessmentbecamefinal,thenanyagreementreachedshallbeimplementednotwithstandingany
timelimitsinthedomesticlawoftheContractingStates.
21[10.WithreferencetoArticle26
(a)
Itisunderstoodthatanexchangeofinformationwillonlybe
requested once the requesting Contracting State has
exhausted all normal procedures under its domestic laws to
obtainthatinformation.
(b)
It is understood that the competent authority of the

requesting State shall provide the following information to
thecompetentauthorityoftherequestedStatewhenmakinga
requestforinformationunderArticle26oftheAgreement:
(i)
thenameoftheperson(s)underexaminationorinvestigationand,ifavailable,otherparticularsfacilitiesthat
person'sidentificationsuchasaddress,dateofbirth,maritalstatus,taxidentificationnumber
(ii)
theperiodoftimeforwhichtheinformationisrequested
(iii)
astatementoftheinformationsoughtincludingitsnatureandtheforminwhichtherequestingStatewishesto
receivetheinformationfromtherequestedState
(iv)
thetaxpurposeforwhichtheinformationissought
(v)
thenameand,ifavailable,addressofanypersonbelievedtobeinpossessionoftherequestedinformation.
(c)
If specifically requested by the competent authority of the

requestingContractingState,thecompetentauthorityofthe
requestedContractingStateshallprovideinformationinthe
formofauthenticatedcopiesofdocuments.
(d)
The purpose of referring to information that may be

foreseeably relevant is intended to provide for exchange of
information in tax matters to the widest possible extent
withoutallowingtheContractingStatestoengagein"fishing
expeditions" or to request information that is unlikelytobe
relevant to the tax affairs of a given taxpayer. While clause
(b) of paragraph 10 contains important procedural
requirements that are intended to ensure that fishing
18/31
1/6/2017
IncomeTaxDepartment
expeditions do not occur, subclause (i) through (v)

nevertheless need to be interpreted in order not to frustrate
effectiveexchangeofinformation.
(e)
ItisfurtherunderstoodthatArticle26oftheAgreementshall
not commit the Contracting States to exchange information
onanautomaticoraspontaneousbasis.
(f)
Itisunderstoodthatincaseofanexchangeofinformation,
the administrative procedural rules regarding taxpayers'
rightsprovidedforintherequestedContractingStateremain
applicable before the information is transmitted to the
requesting Contracting State. It is further understood that
this provision aims at guaranteeing the taxpayer a fair
procedure and not at preventing or unduly delaying the
exchangeofinformationprocess.]
INWITNESSWHEREOFtheundersigned,beingdulyauthorisedthereto,havesignedthepresentProtocol.
DONEinduplicateatNewDelhithis2nddayofNovember,onethousandninehundredandninetyfourintheHindi,German
andEnglishlanguages,allthetextsbeingequallyauthentic,exceptinthecaseofdoubtwhentheEnglishtaxshallprevail.
FortheGovernmentof
theRepublicofIndia:
Sd/
FortheSwiss
FederalCouncil:
Sd/
AMENDMENTNOTIFICATIONNO.GSR74(E),DATED722001
SECTION90OFTHEINCOMETAXACT,1961DOUBLETAXATIONAGREEMENTAGREEMENTFOR
AVOIDANCEOFDOUBLETAXATIONANDPREVENTIONOFFISCALEVASIONWITHFOREIGNCOUNTRIES
SWISSFEDERALCOUNCILAMENDMENTINNOTIFICATIONNO.GSR357(E),DATED2141995
NOTIFICATIONNO.35[F.NO.501773FTD]/GSR74(E),DATED722001
WhereastheannexedProtocolamendingtheAgreementbetweentheGovernmentoftheRepublicofIndiaandtheGovernment
oftheSwissFederalCouncilfortheAvoidanceofDoubleTaxationwithrespecttotaxesonincomehascomeintoforceon20th
December,2000,thedateofthelaterofthenotificationsbyboththeContractingStatestoeachother,underArticle16ofthe
ProtocolAmendingtheAgreement,ofthesatisfactionofallthelegalrequirementsandproceduresforgivingeffecttothesaid
Protocol
GovernmentherebydirectsthatalltheprovisionsofthesaidProtocolAmendingtheAgreement,shallbegiveneffecttointhe
UnionofIndia.
ANNEXURE
PROTOCOL AMENDING THE AGREEMENT BETWEEN THE REPUBLIC OF INDIA AND THE SWISS
CONFEDERATIONFORTHEAVOIDANCEOFDOUBLETAXATIONWITHRESPECTTOTAXESONINCOME
TheGovernmentoftherepublicofIndiaandtheSwissFederalCouncil
Desiring to amend theAgreement between the Republic of India and the Swiss Confederation for the Avoidance of Double
Taxation with respect to taxes on income, signed at New Delhi on 2nd November, 1994 (hereinafter referred to as "the
Agreement"),haveagreedasfollows:
ARTICLE1
Subparagraph(a)ofParagraph1ofArticle3oftheAgreementshallbereplacedbythefollowing:
"(a)theterm"India"meanstheterritoryofIndiaandincludestheterritorialseaandtheairspaceaboveit,aswellasany
othermaritimezoneinwhichIndiahassovereignrights,otherrightsandjurisdictions,accordingtotheIndianlawandin
accordancewithinternationallaw,includingtheUNConventionontheLawofthesea"
ARTICLE2
19/31
1/6/2017
IncomeTaxDepartment
1.Thefirstsentenceofsubparagraph(1)ofparagraph2ofArticle5oftheAgreementshallbereplacedbythefollowing:
"(1) the furnishing of technical services, other than services as defined in Article 12, within a Contracting State by an
enterprisethroughemployeesorotherpersonnel,butonlyif....."
2.Inparagraph3ofArticle5oftheAgreementthefollowingsubparagraphshallbeinsertedaftersubparagraph(e)
"(f)themaintenanceofafixedplaceofbusinesssolelyforanycombinationofactivitiesmentionedinsubparagraphs(a)to
(e),providedthattheoverallactivityofthefixedplaceofbusinessresultingfromthiscombinationisofapreparatoryor
auxilliarycharacter."
3.Thefollowingparagraphshallbeinsertedafterparagraph3ofArticle5oftheAgreement:
"4.NotwithstandingtheprecedingprovisionsofthisArticle,aninsurance enterpriseofaContractingStateshall,exceptin
regardtoreinsurance,bedeemedtohaveapermanentestablishmentintheotherContractingStateifitcollectspremiums
intheterritoryofthatotherStateorinsuresriskssituatedthereinthroughapersonotherthananagentofanindependent
statustowhomparagraph6applies."
4.Theexistingparagraphs4to6ofArticle5oftheAgreementshallbecomeparagraphs5to7.
5. In the first sentenceof paragraph5 ofArticle5of theAgreement the words"...otherthananagent of an independent
statustowhomparagraph5applies..."shallbereplacedbythewordsotherthananagentofanindependentstatustowhom
paragraph6applies......"
ARTICLE3
Paragraph1ofArticle6oftheAgreementshallbereplacedbythefollowing:
1.IncomefromimmovablepropertymayalsobetaxedintheContractingStateinwhichsuchpropertyissituated."
ARTICLE4
1.Paragraph1ofArticle8oftheAgreementshallbereplacedbythefollowing:
"1.ProfitsderivedbyanenterpriseoftheContractingStatefromtheoperation of aircraftin international traffic shall be
taxableonlyinthatState."
ARTICLE5
1.Article9oftheAgreementshallbecomeparagraph1ofArticle9.
2.Thefollowingparagraphshallbeinsertedafterparagraph1ofArticle9oftheAgreement:
"2.WhereaContractingStateincludesintheprofitsofanenterpriseofthatStateandtaxesaccordinglyprofitsonwhich
anenterpriseoftheotherContractingStatehasbeenchargedtotaxinthatotherStateandtheprofitssoincludedareprofits
whichwouldhaveaccruedtotheenterpriseofthefirstmentionedStateiftheconditionsmadebetweenthetwoenterprises
had been those which would have been made between independent enterprises, then that other State shall make an
appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustments, due
regardshallbehadtotheotherprovisionsofthisAgreementandthecompetentauthoritiesoftheContractingStatesshall,if
necessaryconsulteachother."
ARTICLE6
1.Thefirstsentenceofparagraph2ofArticle10oftheAgreementshallbereplacedbythefollowing:
"2.However,suchdividendsmayalsobetaxedintheContractingStateofwhichthecompanypayingthedividendsisa
resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other
ContractingState,thetaxsochargedshallnotexceed10percentofthegrossamountofthedividends."
2.Paragraph4ofArticle10oftheAgreementshahbereplacedbythefollowing:
"4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a
resident,throughapermanentestablishmentsituatedtherein,orperformsinthatotherStateindependentpersonalservices
fromafixedbasesituatedtherein,andtheholdinginrespectofwhichthedividendsarepaidiseffectivelyconnectedwith
suchpermanentestablishmentorfixedbase.InsuchcasetheprovisionsofArticle7orArticle14,asthecasemay be,shall
20/31
1/6/2017
IncomeTaxDepartment
apply."
3.Inparagraph5oftheArticle10oftheAgreementthewords"or afixedbase"shallbeinsertedaftertheterm"permanent
establishment".
ARTICLE7
1.Paragraph2ofArticle11oftheAgreementshallbereplacedbythefollowing:
2.However,suchinterestmayalsobetaxedintheContractingStateinwhichitarises,andaccordingtothelawsofthatState,
butifthebeneficialowneroftheinterestisaresidentoftheotherContractingState,thetaxsochargedshallnotexceed10per
centofthegrossamountoftheinterest."
2.Paragraph3ofArticle11oftheAgreementshallbedeleted.
3.Theexistingparagraph4ofArticle11oftheAgreementshallbecomeparagraph3.
4.Subparagraph(a)ofparagraph3ofArticle11oftheAgreementshallbereplacedbythefollowing:
"3.Notwithstandingtheprovisionsofparagraph2:
(a)interestarisinginSwitzerlandandpaidtoaresidentofIndiashallbetaxableonlyinIndiaifitispaidinrespectofaloan
made, guaranteed or insured, or a credit extended, guaranteed or insured by the Government, a political subdivision, a
statutorybodyoralocalauthorityofIndiaortheExportImportBankofIndia,theReserveBankofIndia,theIndustrial
FinanceCorporationofIndia,theIndustrialDevelopmentBankofIndia,theNationalHousingBank,theSmallIndustries
Development Bank of India or by any institution specified and agreed in letters exchanged between the competent
authoritiesoftheContractingStates.
5.Theexistingparagraphs5to8ofArticle11oftheAgreementshallbecomeparagraphs4to7.
6.Paragraph5to6ofArticle11oftheAgreementshahbereplacedbythefollowing:
"5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent
establishment situated therein, or performs in that other State independent personal services from a fixed base situated
therein, and the debtclaim in respect of which the interest is paid is effectively connected with such permanent
establishmentorfixedbase.InsuchacasetheprovisionsofArticle7orArticle14,asthecasemaybe,shallapply.
6.InterestshallbedeemedtoariseinaContractingStatewhenthepayeristhatStateitself,apoliticalsubdivision,alocal
authorityoraresidentofthatState.Where,however,thepersonpayingtheinterest,whetherheisaresidentofaContracting
Stateornot,hasinaContractingStateapermanentestablishmentorafixedbaseinconnectionwithwhichtheindebtedness
onwhichtheinterestispaidwasincurred,andsuchinterestisbornebysuchpermanentestablishmentorfixedbase, then
such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is
situated."
ARTICLE8
1.Theheadingandparagraph1to7ofArticle12oftheAgreementshallbereplacedbythefollowing:
"ARTICLE12RoyaltiesandfeesforTechnicalServices
1.RoyaltiesandfeesfortechnicalservicesarisinginaContractingStateandpaidtoaresidentoftheotherContractingState
maybetaxedinthatotherState.
2.However,suchroyaltiesandfeesfortechnicalservicesmayalsobetaxedintheContractingStateinwhichtheyariseand
accordingtothelawsofthatStatebutiftherecipientisthebeneficialowneroftheroyaltiesorfeesfortechnicalservices
is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the
royaltiesorthefeesfortechnicalservices.
3.Theterm"royalties"asusedinthisArticlemeanspayments ofanykindreceivedasaconsiderationfortheuseof,orthe
righttouse,anycopyrightofaliterary,artisticorscientificwork,includingcinematographfilmsorworkonfilm,tapeor
othermeansofreproductionforuseinconnectionwithradioortelevisionbroadcasting,anypatenttrademark,designor
model, plan, secret formula or process, or for the use of, or the right to use, any industrial, commercial, or scientific
equipment,orforinformationconcerningindustrial,commercialorscientificexperience.
21/31
1/6/2017
IncomeTaxDepartment
4. For purposes of this Article the term "fees for technical services" means payments of any kind to any person in
considerationfortherenderingofanymanagerial,technicalorconsultancyservices,includingtheprovisionofservicesby
technicalorotherpersonnel.
5.Notwithstandingparagraph4,"feesfortechnicalservices"doesnotincludeamountspaid:
(a)
forteachinginorbyeducationalinstitutions
(b)
forservicescoveredbyArticle14orArticle15,asthecasemaybe.
6.Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialowneroftheroyaltiesorfeesfortechnicalservices,
beingaresidentofaContractingState,carriesonbusinessintheotherContractingStateinwhichtheroyaltiesorfeesfor
technical services arise, through a permanent establishment situated therein, or performs in that other State independent
personalservicesfromafixedbasesituatedtherein,andthecontractinrespectofwhichtheroyaltiesorfeesfortechnical
servicesarepaidiseffectivelyconnectedwithsuchpermanentestablishmentorfixedbase.Insuchcase,theprovisionsof
Article7orArticle14,asthecasemaybe,shallapply.
7.RoyaltiesandfeesfortechnicalservicesshallbedeemedtoariseinaContractingStatewhenthepayeristhatStateitself,
apoliticalsubdivision,localauthorityoraresidentofthatState.Where,however,thepersonpayingtheroyaltiesorfees
for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent
establishmentorafixedbaseinconnectionwithwhichtheliabilitytopaytheroyaltiesorfeesfortechnicalserviceswas
incurred,andsuchroyaltiesorfeesfortechnicalservicesarebornebysuchpermanentestablishment,orfixedbase,then
suchroyaltiesorfeesfortechnicalservicesshallbedeemedtoariseintheStateinwhichthepermanentestablishmentor
fixedbaseissituated."
2. In paragraph 8 ofArticle 12 of theAgreement the term "included services" shall be replaced by the term "technical
services".
ARTICLE9
1.Paragraph2oftheArticle13oftheAgreementshallbereplacedbythefollowing:
"2.Gainsfromthealienationofmovablepropertyformingpartofthebusinesspropertyofapermanentestablishmentwhich
an enterprise of a Contracting State has in the other Contracting State, or of movable property pertaining to a fixed base
available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent
personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole
enterprise)orofsuchfixedbase,mayalsobetaxedinthatotherState."
2.Paragraph5ofArticle13shallbereplacedbythefollowing:
"5.Gainsfromthealienationofsharesotherthanthosementionedinparagraph4,ofacompanywhichisaresidentofa
ContractingState:
(a)
shallbetaxableonlyintheContractingStateofwhichthealienatorisaresident
(b)
notwithstandingtheprovisionofsubparagraph(a),Indiamaytaxgainsfromthealienationofsharesina
companywhichisaresidentofIndia.
Inthiscasetheprovisionsofsubparagraph(b)ofparagraph1,ofArticle23shallapply."
ARTICLE10
1.ThefollowingArticle14relatingtoIndependentPersonalServicesshallbeinsertedafterArticle13relatingtoCapitalGains
:
"ARTICLE14IndependentPersonalServices
1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an
independentcharactershallbetaxableonlyinthatStateexceptinthefollowingcircumstances,whensuchincomemayalso
betaxedintheotherContractingState:
(a)
if he has a fixed base regularly available to him in the other Contracting State for the purpose of
22/31
1/6/2017
IncomeTaxDepartment
performinghisactivitiesinthatcase,onlysomuchoftheincomeasisattributabletothatfixedbasemay
betaxedinthatotherStateor
(b)
if his stay in the other State is for a period or periods aggregating 183 days or more in any 12month
periodcommencingorendinginthefiscalyearconcernedinthatcase,onlysomuchoftheincomeasis
derivedfroinhisactivitiesperformedinthatotherStatemaybetaxedinthatotherState.
2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of physicians, lawyers, engineers, architects, surgeons, dentists and
accountants."
2.TheexistingArticle14shallberenumberedasArticle15andreplacedbythefollowingArticle:
"ARTICLE15DependentPersonalServices
1.SubjecttotheprovisionsofArticles16,18,19,20and21,salaries, wagesandothersimilarremunerationderivedbya
resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is
exercisedintheotherContractingState.Iftheemploymentissoexercised,suchremunerationasisderivedtherefrommay
alsobetaxedinthatotherState.
2.Notwithstandingtheprovisionsofparagraph1,remunerationderivedbyaresidentofaContractingStateinrespectofan
employmentexercisedintheotherContractingStateshallbetaxableonlyinthefirstmentionedStateif:
(a)
therecipientispresentintheotherStateforaperiodorperiodsnotexceedingintheaggregate183daysin
any12monthperiodcommencingorendinginthefiscalyearconcernedand
(b)
theremunerationispaidby,oronbehalfof,anemployerwhoisnotaresidentoftheotherStateand
(c)
theremunerationisnotbornebyapermanentestablishmentorafixedbasewhichtheemployerhasinthe
otherState.
3. Notwithstanding the preceding provisions of thisArticle, remuneration derived in respect of an employment exercised
aboardashiporaircraftoperatedininternationaltrafficbyanenterpriseofaContractingStatemaybetaxedinthatState."
3.Articles15to20oftheAgreementshallbecomeArticles16to21.
ARTICLE11
ThefollowingArticleshallbeinsertedafterArticle21oftheAgreement.
"ARTICLE22OtherIncome
1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoingArticles of this
AgreementshallbetaxableonlyinthatState.
2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in
paragraph2ofArticle6,iftherecipientofsuchincome,beingaresidentof aContractingState,carriesonbusinessinthe
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 of property in respect of which the income is paid is
effectivelyconnectedwithsuchpermanentestablishmentorfixedbase.InsuchcasetheprovisionsofArticle7orArticle
14,asthecasemaybe,shallapply.
3.Notwithstandingtheprovisionsofparagraphs1,ifaresidentofaContractingStatederivesincomefromsourceswithin
theotherContractingStateintheformoflotteries,crosswordpuzzles,racesincludinghorseraces,cardgamesandother
games of any sort or gambling or betting of any form or nature whatsoever, such income may be taxed in the other
ContractingState."
ARTICLE12
1.Article21oftheAgreementshallbecomeArticle23.
2.Insubparagraph(a)ofparagraph2ofrenumberedArticle23oftheAgreementthereferencemadetosubparagraph(d)shall
bedeleted.
23/31
1/6/2017
IncomeTaxDepartment
3. In subparagraph (b) of paragraph 2 of renumbered Article 23 of the Agreement, the term "including services" shall be
replacedbytheterm"technicalservices".
4.Subparagraph(c)ofparagraph2ofrenumberedArticle23oftheAgreementshallbedeleted.
5.Subparagraph(d)ofparagraph2ofrenumberedArticle23oftheAgreementshallbereplacedbythefollowing:
"(c)WherearesidentofSwitzerlandderivesinterestdealtwithinsections10(4),10(4B),10(15)(iv)and80LoftheIndian
IncometaxActof1961(43of1961)andreferredtoinsubparagraph(d )ofparagraph3ofArticle11,Switzerlandshall
allow,uponrequest,arelieftosuchresidentofanamountequalto10percentofthegrossamountoftheinterest."
ARTICLE13
1.Article22oftheAgreementshallbecomeArticle24.
2.Paragraph1ofrenumberedArticle24oftheAgreementshallbereplacedbythefollowing:
"1.NationalsofaContractingStateshallnotbesubjectedintheotherContractingStatetoanytaxationoranyrequirement
connectedtherewithwhichisotherormoreburdensomethanthetaxationandconnectedrequirementstowhichnationalsof
that other State in the same circumstances and under the same conditions are or may be subjected. This provision shall,
notwithstandingtheprovisionsofArticle1,alsoapplytopersonswhoarenotresidentsofoneor bothoftheContracting
States."
3.Thefollowingparagraphshallbeinsertedafterparagraph2ofrenumberedArticle24oftheAgreement:
"3. Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 8 of Article 12, apply, interest,
royaltiesandotherdisbursementspaidbyanenterpriseofaContractingStatetoaresidentoftheotherContractingState
shall,forthepurposeofdeterminingthetaxableprofitsofsuch enterprise, be deductible under the same conditions as if
theyhadbeenpaidtoaresidentofthefirstmentionedState."
4.Theexistingparagraphs3and4ofrenumberedArticle24oftheAgreementshallbecomeparagraphs4and5.
ARTICLE14
Articles23to27oftheAgreementshallbecomeArticles25to29.
ARTICLE15
A.Inthefirstsubparagraphofparagraph1oftheProtocoltotheAgreementthewords".......inparagraph2,subparagraph(a)
ofArticle12."shallbereplacedbythewords".....inparagraph2ofArticle12."
B.Inthethirdsubparagraphofparagraph1oftheProtocoltotheAgreementthewords"Withrespecttoparagraph4ofArticle
5....."shallbereplacedbythewords"Withrespecttoparagraph5ofArticle5....."
C.IntheProtocoltotheAgreementthefollowingparagraphshallbeinsertedafterparagraph2:
"3.Withreferencetoparagraph2ofArticle9
ItisunderstoodthatSwitzerlandshallonlymakeanappropriateadjustmentafterconsultationwiththecompetentauthority
ofIndiaandafterreachinganagreementontheadjustmentsofprofitsinbothContractingStates."
D.Theexistingparagraph3oftheProtocoltotheAgreementshallbereplacedbythefollowing:
"4.WithreferencetoArticles10,11and12
IfafterthesignatureoftheProtocolof16thFebruary,2000underanyConvention,AgreementorProtocolbetweenIndiaanda
thirdStatewhichisamemberoftheOECDIndiashouldlimititstaxationatsourceondividends,interest,royaltiesorfeesfor
technicalservicestoaratelowerorascopemorerestrictedthantherateorscopeprovidedforinthisAgreementonthesaid
items of income, then, Switzerland and India shall enter into negotiations without undue delay in order to provide the same
treatmenttoSwitzerlandasthatprovidedtothethirdState."
E.IntheProtocoltotheAgreementthefollowingparagraphshallbeinsertedafterparagraph4:
"5.Withreferencetosubparagraph(b)ofparagraph5ofArticle13
ItisunderstoodthatifatalaterstageSwitzerlandshallintroduceacapitalgainstaxonthealienationofsharesofaSwiss
company other than shares of a company mentioned in paragraph 4, paragraph 5 ofArticle 13 shall be replaced by the
following:
24/31
1/6/2017
IncomeTaxDepartment
"5.Gainsfromthealienationofsharesotherthanthosementionedin paragraph 4 in a company which is aresidentofa

ContractingStatemaybetaxedinthatState."
Inthiscasesubparagraph(b)ofparagraph1ofArticle23oftheAgreementshallbedeleted.
F.Theexistingparagraph4oftheProtocoltotheAgreementshallbecomeparagraph6.
G.IntheProtocoltotheAgreementthefollowingparagraphshallbeinsertedafterparagraph6:
ItisunderstoodthatthisprovisionshallnotbeconstruedaspreventingaContractingStatefromchargingtheprofitsofa
permanentestablishmentwhichacompanyoftheotherContractingStatehasinthefirstmentionedStateatarateoftax
whichishigherthanthatimposedontheprofitsofasimilarcompanyofthefirstmentionedContractingState,norasbeing
inconflictwiththeprovisionsofparagraph3ofArticle7ofthisAgreement."
H.Theexistingparagraph5oftheProtocoltotheAgreementshallbecomeparagraph8anditsheadingshallbereplacedbythe
following:
"8.WithreferencetoArticle25"
ARTICLE16
1.TheGovernmentsoftheContractingStatesshallnotifyeachotherthrough diplomaticchannelsthatalllegalrequirements
andproceduresforgivingeffecttothisProtocolhavebeensatisfied.
2. The Protocol, which shall form an integral part of the Agreement, shall enter into force on the date of the later of the
notificationsreferredtoinparagraph1anditsprovisionsshallhaveeffect:
(a)
followingthecalendaryearinwhichtheProtocolenteredintoforceand
(b)
JanuarynextfollowingthecalendaryearinwhichtheProtocolenteredintoforce.
Inwitnesswhereof,theundersigned,dulyauthorizedtheretobytheirrespectiveGovernments,havesignedthisProtocol.
Done in duplicate at New Delhi, this 16th day of February, 2000, in the German,HindiandEnglishlanguages, all the texts
beingequallyauthentic.IncaseofdivergenceofinterpretationtheEnglishtextshallprevail.
FortheGovernmentofFortheSwissFederalCounciltheRepublicofIndiaSdSd(YashwantSinha)(PascalCouchepin)
AMENDMENTNOTIFICATIONNO.SO2903(E),DATED27122011
SECTION90OFTHEINCOMETAXACT,1961DOUBLETAXATIONAGREEMENTAMENDMENTOF
AGREEMENTFORAVOIDANCEOFDOUBLETAXATIONANDPREVENTIONOFFISCALEVASIONWITH
FOREIGNCOUNTRIESSWISSCONFEDERATION
NOTIFICATIONNO.62/2011[F.NO.501/01/1973FTDI]S.O.2903(E),DATED27122011
WhereasaProtocolamendingtheAgreementbetweentheRepublicofIndia andtheSwissConfederationfortheavoidanceof
double taxation with respect to taxes on income with Protocol, signed at New Delhi on the 2nd day of November, 1994, as
amendedbythesupplementaryProtocolsignedatNewDelhionthe16thdayofFebruary,2000,wassignedatNewDelhion
the30thdayofAugust,2010
And whereas the date of entry into force of the said Protocol is the 7th day of October, 2011, being the date of later of the
notificationsofsatisfactionofalllegalrequirementsandproceduresasrequiredbytherespectivelawsforentryintoforceof
thesaidProtocol,inaccordancewithParagraph2ofArticle14ofthesaidProtocol
And whereas subparagraph (a) of Paragraph 2 of Article 14 of the said Protocol provides that the provisions of the said
ProtocolshallhaveeffectinIndiainrespectofincomearisinginanyfiscalyearbeginningonorafterthefirstdayofAprilnext
followingthecalendaryearinwhichtheAmendingProtocolenteredintoforce
And whereas Paragraph 3 ofArticle 14 of the said protocol provides that with respect toArticle 26 of theAgreement, the
exchange of information provided for in the said Protocol will be applicable for information that relates to any fiscal year
beginningonorafterthefirstdayofJanuaryoftheyearnextfollowingthedateofsignatureofthesaidProtocol
25/31
1/6/2017
IncomeTaxDepartment
GovernmentherebydirectsthatalltheprovisionsofthesaidProtocol,assetoutintheAnnexurehereto,shallbegiveneffectto
intheUnionofIndiainrespectofincomearisinginanyfiscalyearbeginningonorafterthe1stdayofApril,2012andwith
respect toArticle 26 of the Agreement, the exchange of information provided for in the said Protocol will be applicable for
informationthatrelatestoanyfiscalyearbeginningonorafterthe1stdayofApril,2011.
PROTOCOL
AmendingtheAgreementbetweentheRepublicofIndiaandtheSwissConfederationfortheAvoidanceofDouble
TaxationwithrespecttoTaxesonIncomewithProtocol,SignedatNewDelhion2November1994,asAmendedbythe
SupplementaryProtocolSignedatNewDelhion16February2000
TheGovernmentoftheRepublicofIndia
and
theSwissFederalCouncil
Desiring to conclude a Protocol (hereinafter referred to as "Amending Protocol") to amend the Agreement between the
Contracting Parties for the Avoidance of Double Taxation with respect to Taxes on Income, signed at New Delhi on 2
November1994,asamendedbythesupplementaryProtocolsignedatNewDelhion16February2000(hereinafterreferredto
as"theAgreement")
Haveagreedasfollows:
Article1:Subparagraph(i)ofparagraph1ofArticle3(GeneralDefinitions)ofthe Agreementshallbedeletedandreplaced
bythefollowingsubparagraph:
"(i)theterm"internationaltraffic"meansanytransportbyashiporaircraftoperatedbyanenterpriseofaContractingState,
exceptwhentheshiporaircraftisoperatedsolelybetweenplacesintheotherContractingState"
Article 2 : Paragraph 1 of Article 7 (Business profits) of the Agreement shall be deleted and replaced by the following
paragraph:
"1.The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on
business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on
businessasaforesaid,theprofitsoftheenterprisemaybetaxedintheotherStatebutonlysomuchofthemasisattributable
tothatpermanentestablishment."
Article3:Article8(Airtransport)oftheAgreementshallbedeletedandreplacedbythefollowingArticle:
"Article8
Shippingandairtransport
1.
ProfitsofanenterpriseofaContractingStatefromtheoperationofshipsoraircraftininternationaltraffic
shallbetaxableonlyinthatState.
2.
Theprovisionsofparagraph1shallalsoapplytoprofitsfromtheparticipationinapool,ajointbusiness
oraninternationaloperatingagency."
Article 4 : Paragraph 3 subparagraph (c) of Article 11 (Interest) of the Agreement shall be deleted and replaced by the
followingparagraph:
"(c)interestarisinginaContractingStateandpaidtoaresidentoftheotherContractingStateengagedintheoperationof
ships or aircraft in international traffic shall be taxable only in that other State to the extent that such interest is paid on
fundsconnectedwithsuchactivity"
Article5:Paragraph3ofArticle13(Capitalgains)oftheAgreementshallbedeletedandreplacedbythefollowingparagraph:
"3.GainsderivedbyanenterpriseofaContractingStatefromthealienationofshipsoraircraftoperatedininternational
traffic,ormovablepropertypertainingtotheoperationofsuchshipsoraircraftshallbetaxableonlyinthatState"
Article6:Subparagraph(c)ofparagraph2ofArticle23(Eliminationofdoubletaxation)oftheAgreementshallbedeleted.
Article7 : Paragraph 2 ofArticle 24 (Nondiscrimination) of theAgreement shall be deleted and replaced by the following
paragraph:
26/31
1/6/2017
IncomeTaxDepartment
"2.ThetaxationonapermanentestablishmentwhichanenterpriseofaContractingStatehasintheotherContractingState
shallnotbelessfavourablyleviedinthatotherStatethanthetaxationleviedonenterprisesofthatotherStatecarryingon
thesameactivities.ThisprovisionshallnotbeconstruedasobligingaContractingStatetogranttoresidentsoftheother
ContractingStateanypersonalallowances,reliefsandreductionsfortaxationpurposesonaccountofcivilstatusorfamily
responsibilitieswhichitgrantstoitsownresidents."
Article8:Article26(Exchangeofinformation)oftheAgreementshallbedeletedandreplacedbythefollowingArticle:
"Article26
Exchangeofinformation
1.
The competent authorities of the Contracting States shall exchange such

informationasisforeseeablyrelevantforcarryingouttheprovisionsofthis
Agreement or to the administration or enforcement of the domestic laws
concerning taxes covered by the Agreement insofar as the taxation
thereunderisnotcontrarytotheAgreement.The exchangeofinformation
isnotrestrictedbyArticle1.
2.
Anyinformationreceived under paragraph 1 by a Contracting State shall

betreatedassecretinthesamemannerasinformationobtainedunderthe
domestic laws of that State and shall be disclosed only to persons or
authorities(includingcourtsandadministrativebodies)concernedwiththe
assessment or collectionof, the enforcement or prosecutionin respectof,
or the determination of appeals in relation to the taxes referred to in
paragraph1,ortheoversightoftheabove.Suchpersonsorauthoritiesshall
use the information only for such purposes. They may disclose the
information in public court proceedings or in judicial decisions.
Notwithstanding the foregoing, information received by a Contracting
Statemaybeusedforotherpurposeswhensuchinformationmaybeused
for such other purposes under the laws of both States and the competent
authorityofthesupplyingStateauthorisessuchuse.
3.
Innocaseshalltheprovisionsofparagraphs1and2beconstruedsoasto
imposeonaContractingStatetheobligation:
(a) tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepractice
ofthatoroftheotherContractingState
(b) tosupplyinformationwhichisnotobtainableunderthelawsorinthenormalcourseofthe
administrationofthatoroftheotherContractingState
(c) tosupplyinformationwhichwoulddiscloseanytrade,business,industrial,commercialor
professional secret or trade process, or information the disclosure of which would be
contrarytopublicpolicy(ordrepublic).
4.
IfinformationisrequestedbyaContractingStateinaccordancewiththis
Article, the other Contracting State shall use its information gathering
measurestoobtaintherequestedinformation,eventhoughthatotherState
may not need such information for its own tax purposes. The obligation
contained in the preceding sentence is subject to the limitations of
paragraph3butinnocaseshallsuchlimitationsbeconstruedtopermita
ContractingStatetodeclinetosupplyinformationsolelybecauseithasno
domesticinterestinsuchinformation.
5.
In no case shall the provisions of paragraph 3 be construed to permit a

Contracting State to decline to supply information solely because the
information is held by a bank, other financial institution, nominee or
27/31
1/6/2017
IncomeTaxDepartment
personactinginanagencyorafiduciarycapacityorbecauseitrelatesto
ownershipinterestsinaperson.Inordertoobtainsuchinformation,thetax
authorities of the requested Contracting State shall, therefore, have the
powertoenforcethedisclosureofinformationcoveredbythisparagraph,
notwithstanding paragraph 3 or any contrary provisions in its domestic
laws."
Article 9 : A new paragraph 1 of the Protocol to the Agreement shall be added and the remaining paragraphs shall be
renumberedaccordinglyandshallreadasfollows.
"1.WithreferencetoArticle4
Itisunderstoodthatparagraph1ofArticle4,theterm"resident ofaContractingState"includesarecognizedpensionfundor
pension scheme in that Contracting State. It is further understood that a recognized pension fund or pension scheme of a
Contracting State shall be regarded as any pension fund or pension scheme recognized and controlled according to statutory
provisions of that State, which is generally exempt from income taxation in that State and which is operated principally to
administerorprovidepensionorretirementbenefits."
Article10:Thefirstsubparagraphofparagraph2oftheProtocol(WithreferencetoArticle7)shallbedeleted.
Article11:Paragraph4oftheProtocoltotheAgreementshallbedeletedandreplacedbythefollowingparagraph:
"5.WithreferencetoArticles10,11,12and22
TheprovisionsofArticles10,11,12and22shallnotapplyinrespect toanydividend,interest,royalty,feesfortechnical
services or other income paid under, or as part of a conduit arrangement. The term "conduit arrangement" means a
transactionorseriesoftransactionswhichisstructuredinsuchawaythataresidentofaContractingStateentitledtothe
benefitsoftheAgreementreceivesanitemofincomearisingintheotherContractingStatebutthatresidentpays,directlyor
indirectly,allorsubstantiallyallofthatincome(atanytimeorinanyform)toanotherpersonwhoisnotaresidentofeither
ContractingStateandwho,ifitreceivedthatitemofincomedirectlyfromtheotherContractingState,wouldnotbeentitled
under a Convention orAgreement for the avoidance of double taxation between the State in which that other person is
residentandtheContractingStateinwhichtheincomearises,orotherwise,tobenefitswithrespecttothatitemofincome
whichareequivalentto,ormorefavourablethan,thoseavailableunderthisAgreementtoaresidentofaContractingState
andthemainpurposeofsuchstructuringisobtainingbenefitsunderthisAgreement.
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 signed after the
signatureofthisAmendingProtocol,Indialimitsitstaxationatsourceondividends,interest,royaltiesorfeesfortechnical
servicestoaratelowerthantherateprovidedforinthisAgreementonthesaiditemsofincome,thesamerateasprovided
forinthatConvention,AgreementorProtocolonthesaiditemsofincomeshallalsoapplybetweenbothContractingStates
underthisAgreementasfromthedateonwhichsuchConvention,AgreementorProtocolentersintoforce.
IfafterthedateofsignaturethisAmendingProtocol,IndiaunderanyConvention,AgreementorProtocolwithathirdState
whichisamemberoftheOECD,restrictsthescopeinrespectofroyaltiesorfeesfortechnicalservicesthanthescopefor
theseitemsofincomeprovidedforinArticle12ofthisAgreement,thenSwitzerlandandIndiashallenterintonegotiations
withoutunduedelayinordertoprovidethesametreatmenttoSwitzerlandasthatprovidedtothethirdState."
Article12:Paragraph7oftheProtocoltotheAgreement(Withreferencetoparagraph4ofArticle24) shall be deleted and
replacedbythefollowingparagraph:
It is understood that the provisions of paragraph 2 ofArticle 24 shall not be construed as preventing aContractingState
from charging the profits of a permanent establishment which a company of the other Contracting State has in the first
mentionedStateatarateoftaxwhichishigherthanthatimposedontheprofitsofasimilarcompanyofthefirstmentioned
ContractingState,norasbeinginconflictwiththeprovisionsofparagraph3ofArticle7.Howeverthedifferenceintaxrate
shallnotexceed10percentagepoints."
Article13:Anewparagraph10oftheProtocoltotheAgreementshallbeaddedasfollows:
"10.WithreferencetoArticle26
28/31
1/6/2017
IncomeTaxDepartment
(a)
Itisunderstoodthatanexchangeofinformationwillonlybe
requested once the requesting Contracting State has
exhausted all normal procedures under its domestic laws to
obtainthatinformation.
(b)
It is understood that the competent authority of the

requesting State shall provide the following information to
thecompetentauthorityoftherequestedStatewhenmaking
arequestforinformationunderArticle26oftheAgreement:
(i)
thenameoftheperson(s)underexaminationorinvestigationand,ifavailable,otherparticularsfacilitatingthat
person'sidentificationsuchasaddress,dateofbirth,maritalstatus,taxidentificationnumber
(ii)
theperiodoftimeforwhichtheinformationisrequested
(iii)
astatementoftheinformationsoughtincludingitsnatureandtheforminwhichtherequestingStatewishesto
receivetheinformationfromtherequestedState
(iv)
thetaxpurposeforwhichtheinformationissought
(v)
thenameand,ifavailable,addressofanypersonbelievedtobeinpossessionoftherequestedinformation.
(c)
If specifically requested by the competent authority of the

requestingContractingState,thecompetent authority of the
requestedContractingStateshallprovideinformationinthe
formofauthenticatedcopiesofdocuments.
(d)
The purpose of referring to information that may be

foreseeably relevant is intended to provide for exchange of
information in tax matters to the widest possible extent
withoutallowingtheContractingStatestoengagein"fishing
expeditions" or to request information that is unlikelytobe
relevanttothetaxaffairsofagiven taxpayer. While clause
(b) of paragraph 10 contains important procedural
requirements that are intended to ensure that fishing
expeditions do not occur, subclauses (i) through (v)
nevertheless need to be interpreted in order not to frustrate
effectiveexchangeofinformation.
(e)
ItisfurtherunderstoodthatArticle26oftheAgreementshall
not commit the Contracting States to exchange information
onanautomaticoraspontaneousbasis.
(f)
It is understood thatincaseofanexchangeofinformation,
the administrative procedural rules regarding taxpayers'
rightsprovidedforintherequestedContractingStateremain
applicable before the information is transmitted to the
requestingContractingState.Itisfurtherunderstoodthatthis
provisionaimsatguaranteeingthetaxpayerafairprocedure
and not at preventing or unduly delaying the exchange of
informationprocess."
Article14:1 .TheGovernmentsoftheContractingStatesshallnotifyeachotherthrough diplomaticchannels that all legal

requirementsandproceduresforgivingeffecttothisAmendingProtocolhavebeensatisfied.
2.TheAmendingProtocol,whichshallformanintegralpartoftheAgreement,shallenterintoforceonthedateofthelaterof
thenotificationsreferredtoinparagraph1anditsprovisionsshallhaveeffect:
(a)

inIndia,
inrespectofincomearisinginanyfiscalyearbeginningonorafterthefirstdayofAprilnextfollowing
29/31
1/6/2017
IncomeTaxDepartment
thecalendaryearinwhichtheAmendingProtocolenteredintoforceand
(b)

inSwitzerland,
inrespectofincomearisinginanyfiscalyearbeginningonorafterthefirstdayofJanuarynextfollowing
thecalendaryearinwhichtheAmendingProtocolenteredintoforce.
3. Notwithstanding paragraph 2 of this Article, with respect to Article 26 of the Agreement, the exchange of information
providedforinthisAmendingProtocolwillbeapplicableforinformationthat relatestoanyfiscalyearbeginningonorafter
thefirstdayofJanuaryoftheyearnextfollowingthedateofsignatureofthisAmendingProtocol.
In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Amending
Protocol.
Done in duplicate at New Delhi this 30th day ofAugust 2010 in the English, German and Hindi languages, all texts being
equallyauthentic.Inthecaseofanydivergence,theEnglishtextshallprevail.
1.Substitutedfor"inparagraph2,subparagraph(a)ofArticle12"byNotificationNo.GSR74(E),dated722001.
2.Substitutedfor"Withrespecttoparagraph4",byNotificationNo.GSR74(E),dated722001.
1.Paragraph3insertedbyNotificationNo.GSR74(E),dated722001.
8.Existingparagraph5renumberedasparagraph8,byNotificationNo.GSR74(E),dated722001.
11.InsertedbyNotificationNo.SO2903(E),dated27122011.
12.Paragraph1renumberedasparagraph2byNotificationNo.SO2903(E),dated27122011.
13. Omitted by Notification No. SO 2903(E), dated 27122011. Prior to its omission, first subparagraph of
paragraph2,readasunder:
"2.Withrespecttoparagraph1ofArticle7,itisunderstoodthewords"directlyorindirectly"mean,forthepurposesofthis
Article,thatwhereapermanentestablishmenttakesanactivepartinnegotiating,concludingorfulfillingcontractsentered
intobytheenterprise,then,notwithstandingthatotherpartsoftheenterprisehavealsoparticipatedinthosetransactions,
there shall be attributed to the permanent establishment that proportion of profits of the enterprise arising out of those
contractsasthecontributionofthepermanentestablishmenttothosetransactionsbearstothatoftheenterpriseasawhole.
It is also understood that profits shall be regarded as attributable to the permanent establishment to the abovementioned
extent, even when the contracts in question are made directly with the head office of the enterprise rather than with the
permanentestablishment."
14. Second subparagraph of paragraph 2 renumbered as paragraph 3, after deletion of first subparagraph of
paragraph2,byNotificationNo.SO2903(E),dated27122011.
16.SubstitutedbyNotificationNo.SO2903(E),dated27122011.Priortoitssubstitution,paragraph4,whichwas
amendedbyNotificationNo.GSR74(E),dated722001,andrenumberedasparagraph5byNotificationNo.SO
2903(E),dated27122011,readasunder:
"WithreferencetoArticles10,11and12
4.IfafterthesignatureoftheProtocolof16thFebruary,2000underanyConvention,AgreementorProtocolbetweenIndia
andathirdStatewhichisamemberoftheOECDIndiashouldlimititstaxationatsourceondividends,interest,royaltiesor
feesfortechnicalservicestoaratelowerorascopemorerestrictedthantherateorscopeprovidedforinthisAgreementon
thesaiditemsofincome,then,SwitzerlandandIndiashallenterintonegotiationswithoutunduedelayinordertoprovide
thesametreatmenttoSwitzerlandasthatprovidedtothethirdState."
19.SubstitutedbyNotificationNo.SO2903(E),dated27122011.Priortoitssubstitution,paragraph7,whichwas
30/31
1/6/2017
IncomeTaxDepartment
amendedbyNotificationNo.GSR74(E),dated722001,readasunder:
"Withreferencetoparagraph4ofArticle24
7.ItisunderstoodthatthisprovisionshallnotbeconstruedaspreventingaContractingStatefromchargingtheprofitsofa
permanentestablishmentwhichacompanyoftheotherContractingStatehasinthe first mentioned State at a rate of tax
whichishigherthanthatimposedontheprofitsofasimilarcompanyofthefirstmentionedContractingState,norasbeing
inconflictwiththeprovisionsofparagraph3ofArticle7ofthisAgreement."
21.InsertedbyNotificationNo.SO2903(E),dated27122011.
Copyright. Taxmann Publications Pvt. Ltd.
31/31

DTC Agreement Between Switzerland and India

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

DTC Agreement Between Switzerland and India

Uploaded by

Copyright:

Available Formats

1/6/2017

in the case of India, the "previous year" as defined in the

a warehouse in relation to a person providing storage facilities for

a building site or construction, installation or assembly project or

aninstallationor structure used for the exploration or development

taxedaccordingtoArticle7or,onrequestoftheenterprise,accordingtothe ratesprovidedfor....., 1[inparagraph2ofArticle

It is understood that the competent authority of the

If specifically requested by the competent authority of the

The purpose of referring to information that may be

expeditions do not occur, subclause (i) through (v)

"5.Gainsfromthealienationofsharesotherthanthosementionedin paragraph 4 in a company which is aresidentofa

The competent authorities of the Contracting States shall exchange such

Anyinformationreceived under paragraph 1 by a Contracting State shall

In no case shall the provisions of paragraph 3 be construed to permit a

It is understood that the competent authority of the

If specifically requested by the competent authority of the

The purpose of referring to information that may be

Article14:1 .TheGovernmentsoftheContractingStatesshallnotifyeachotherthrough diplomaticchannels that all legal

Copyright. Taxmann Publications Pvt. Ltd.

You might also like