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Residents of India Remission Order (SI/91-137)

Regulations are current to 2024-11-26

Residents of India Remission Order

SI/91-137

FINANCIAL ADMINISTRATION ACT

Registration 1991-10-23

Order Respecting the Remission of Income Tax, Interest and Penalties on Royalties or Fees Received from Canada by Residents of India for Technical Services

P.C. 1991-1953  1991-10-10

His Excellency the Governor General in Council, considering that it is in the public interest, on the recommendation of the Minister of Finance, pursuant to subsection 23(2) of the Financial Administration ActFootnote *, is pleased hereby to make the annexed Order respecting the remission of income tax, interest and penalties on royalties or fees received from Canada by residents of India for technical services.

Short Title

 This Order may be cited as the Residents of India Remission Order.

Interpretation

 In this Order,

Act

Act means the Income Tax Act; (Loi)

Agreement

Agreement means the Agreement between the Government of Canada and the Government of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income set out in Schedule III to chapter 7 of the Statutes of Canada, 1986; (Accord)

person

person has the meaning assigned by paragraph 1(c) of Article 3 of the Agreement. (personne)

Remission

 Remission is hereby granted to any person who is a resident of India, within the meaning of the Agreement, for any amount paid or credited to that person in respect of royalties in relation to a right or property that is granted after December 12, 1988 or in respect of fees for technical services under a contract that is signed after that date, of an amount equal to the amount by which

  • (a) the aggregate of the taxes, interest and penalties payable by that person under the Act with respect to the amount so paid or credited

exceeds

  • (b) the aggregate of the taxes, interest and penalties that would have been payable by that person under the Act with respect to the amount so paid or credited, if the reference to a rate of 30 per cent in paragraph 2 of Article 13 of the Agreement were read as a reference to a rate of 20 per cent.


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