4. The competent authorities of the Contracting Parties may communicate directly with each other, including through a joint committee composed of them or their representatives, with a view to reaching an agreement within the meaning of the preceding paragraphs. 4. Enterprises of a Contracting Party whose capital is wholly or partly owned directly or partly or under the control of one or more residents of the other Contracting Party shall not be subject, in the first Contracting Party, to any taxation or requirement which is different or more onerous than the taxation and related requirements to which other similar enterprises of the first Contracting Party are subject or are subject. Contracting party I cannot do that. Passive income streams such as dividends, interest, royalties and FTTs are generally taxable in the country of residence. This income can also be taxed in the home country with a tax rate of 5% on dividends and 10% on interest, royalties and FTTs on a gross basis.2 If this income is effectively linked to an EP in the home country, Article 7 governs net taxation. 3. The term «dividends» as used in this Article means income from shares or other rights other than claims, participation in profits and income from other corporate rights subject to the same tax treatment as income from shares under the law of the Party in which the distributing company is established. This provision alleviates double taxation in the other State Party and is in line with India`s commitment under Action 14 on the Dispute Settlement Mechanism of the OECD Profit Reduction and Profit Shifting Plan (BEPS). 2.
A Party shall not be required to grant benefits under the Agreement if the main objective or one of the main objectives of the persons concerned is to tax non-taxation or reduced taxation through tax evasion or avoidance (including through agreements to purchase contracts for the indirect benefit of residents of third parties provided for in the Agreement). 1. Where a person considers that the actions of one or both Parties lead to taxation which is not in conformity with the provisions of this Agreement, he may submit his case to the competent authority of the Party in which he is established, irrespective of the remedies provided for by the domestic law of those Parties, or where his case falls within the scope of Article 24, paragraph 1: in the case of the Contracting Party in which he has the right of residence or if he is registered or otherwise constituted (in the case of the Hong Kong Special Administrative Region) or nationality (in the case of India). The case must be submitted within three years of the first notification of the measure leading to taxation which does not comply with the provisions of the Agreement. 1. Persons who, in the case of the Hong Kong Special Administrative Region, have the right to reside or who are registered or who are constituted in the case of India and who, in the case of India, are nationals of India, may not be subject to any taxation or condition related thereto, different from or more onerous than the taxation and related obligations to which persons entitled to stay, who are registered or who are other; who have been or may be established in that other Party (if that other Party is the Hong Kong Special Administrative Region) or nationals of that other Party (if it is India) in the same circumstances, including with regard to the place of residence. . .