1868-(46)

II SÉRIE-A — NUMERO 66

or after the first day of January in the year next following the year in which this Convention enters into force; , h) In respect of other taxes as to income arising in the fiscal year beginning on or after the first day of January in the year

next following the year in which this Convention enters into force;

b) In India:

In respect of income arising in any fiscal year beginning on or after the first day of April next following the calendar year in which this Convention enters into force.

Article 30 Termination

This Convention shall remain in force indefinitely but either of the Contracting States may, on or before the thirtieth day of June in any calendar year from the fifth year'following that in which the notifications have been given, terminate the Convention through diplomatic channels. In such event, the Convention shall cease to have effect:

a) In Portugal:

i) In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January of the year next following the date on which the period specified in the said notice of termination expires;

ii) In respect of other taxes, as to income arising in the fiscal year beginning on or after the first day of January next fallowing the date on which the period specified in the said notice of termination expires;

b) In India:

In respect of income arising in any fiscal year beginning on or after the first day of April next following the date on which the period specified in the said notice of termination expires.

In witness whereof the undersigned, duly authorised thereto, have signed this Convention.

Done in duplicate, at Lisboa this 11 day of September 1998, in Portuguese, Hindi and English languages, each text being equally authentic, the English text prevailing in case of doutbt.

For the Government of the Portuguese Republic:

For the Government of Republic of India:

PROTOCOL

At the moment of signing the Convention between the Portuguese Republic and the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following which shall be an integral part of the Convention.

Ad article 3

For the purposes of paragraph 3, the reference to the time of application of the Convention shall mean the time when the income which is the subject matter of this Convention arises.

Ad articles 3 and 23

For the purposes of paragraph 1, d), of article 3 and article 23 the expression «tax» shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which this Convention applies or which represents a penalty imposed relating to those taxes.

Ad article 5

For the purposes of paragraph 2, a warehouse in relation to a person providing storage facilities for others will be considered as constituting a permanent establishment.

Ad article 6

For the purposes of paragraph 1, it is agreed that the Contracting State of which the person deriving income from property is a resident is also entitled to tax such income.

Ad article 7

For the purposes of paragraph 3, it is agreed that the provisions of the domestic tax laws referred to therein relate, in the case of India, to section 44C of the Indian Income Tax Act, 1961. It is further agreed that in no event the conditions and limits referred to in section 44C shall not be less favourable than those in force on the date of the signing of this Convention.

Ad article 13

For the purposes of paragraphs 1 and 4, it is agreed that the Contracting State of which the person deriving the capital gains is a resident is also emitted to tax such capital gains.

Ad article 23

It is understood that the term «économie development used in paragraph 5 of article 23 would mean industrial development or development of infrastruc-tural facilities.

Ad article 24

1 — The provisions of article 24 do not preclude the application of any provision of the tax law of the Contracting States dealing with thin capitalisation problems.