Income Tax Department

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IncomeTaxDepartment
ESTONIA
AgreementforAvoidanceofDoubleTaxationandPreventionoffiscalevasionwithforeigncountriesEstonia
WHEREAS an Agreement and the Protocol between the Government of the Republic of India and the Government of the
RepublicofEstonia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on
IncomewassignedatTallinn,Estonia,on19thdayofSeptember,2011
ANDWHEREAS,thedateofentryintoforceofthesaidAgreementisthe20thdayofJune,2012,beingthedateofthelater
of the notifications of completion of the procedures as required by the respective laws for entry into force of the said
Agreement,inaccordancewithparagraph2ofArticle30ofthesaidAgreement
ANDWHEREAS,subparagraph(a)ofparagraph3ofArticle30ofthesaidAgreementprovidesthattheprovisionsofthe
saidAgreementshallhaveeffectinIndiainrespectofincomederivedinanyfiscalyearbeginningonorafterthefirstdayof
AprilnextfollowingthecalendaryearinwhichtheAgreemententersintoforce
NOW,THEREFORE,inexerciseofthepowersconferredbysection90oftheIncometaxAct,1961(43of1961),theCentral
Government hereby directs that all the provisions of the said Agreement, as set out in the Annexure hereto, shall be given
effecttointheUnionofIndiawitheffectfrom1stdayofApril,2013.
Notification:No.27/2012[F.No.503/02/1997FTD1]/SO1677(E),dated2572012
ANNEXURE
AGREEMENTBETWEENTHEREPUBLICOFINDIAANDTHEREPUBLICOFESTONIAFORTHE
AVOIDANCEOFDOUBLETAXATIONANDTHEPREVENTIONOFFISCALEVASIONWITHRESPECTTO
TAXESONINCOME
TheRepublicofIndiaandtheRepublicofEstonia,desiringtoconcludeanAgreementfortheavoidanceofdoubletaxation
and the prevention of fiscal evasion with respect to taxes on income and with a view to promoting economic cooperation
betweenthetwocountries,haveagreedasfollows:
ARTICLE1
PERSONSCOVERED
ThisAgreementshallapplytopersonswhoareresidentsofoneorbothoftheContractingStates.
ARTICLE2
TAXESCOVERED
1.ThisAgreementshallapplytotaxesonincomeimposedonbehalfofaContractingStateorofitspoliticalsubdivisionsor
localauthorities,irrespectiveofthemannerinwhichtheyarelevied.
2.Thereshallberegardedastaxesonincomealltaxesimposedontotalincome,oronelementsofincome,includingtaxeson
gains from the alienation of movable or immovable property and taxes on the total amounts of wages or salaries paid by
enterprises.
3.TheexistingtaxestowhichtheAgreementshallapplyareinparticular:
(a)
inIndia,theincometax,includinganysurchargethereon(hereinafterreferredtoas"Indiantax")
(b)
inEstonia,theincometax
(hereinafterreferredtoas"Estoniantax").
4.TheAgreementshallapplyalsotoanyidenticalorsubstantiallysimilartaxesthatareimposedafterthedateofsignatureof
theAgreementinadditionto,orinplaceof,theexistingtaxes.ThecompetentauthoritiesoftheContractingStatesshallnotify
eachotherofanysignificantchangesthathavebeenmadeintheirrespectivetaxationlaws.
http://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?path=http://www.incometaxindia.gov.in/dtaa/comprehensive%20agreements/1086900000
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ARTICLE3
GENERALDEFINITIONS
1.ForthepurposesofthisAgreement,unlessthecontextotherwiserequires:
(a)
theterm"India"meanstheterritoryofIndiaandincludestheterritorialseaandairspaceaboveit,aswellas
any other maritime zone in which India has sovereign rights, other rightsandjurisdiction, accordingtothe
Indianlawandinaccordancewithinternationallaw,includingtheU.N.ConventionontheLawoftheSea
(b)
the term "Estonia" means the Republic of Estonia and, when used in the geographical sense, means the
territoryofEstonia and any other area adjacent to the territorial waters ofEstonia within which, under the
lawsofEstoniaandinaccordancewithinternationallaw,therightsofEstoniamaybeexercisedwithrespect
totheseabedanditssubsoilandtheirnaturalresources
(c)
theterms"ContractingState"and"theotherContractingState"meantheRepublicofIndiaortheRepublicof
Estoniaasthecontextrequires
(d)
theterm"person"includesanindividual,acompany,abodyofpersonsandanyotherentitywhichistreated
asataxableunitunderthetaxationlawsinforceintherespectiveContractingStates
(e)
the term "company" means any body corporate or any entity that is treated as a body corporate for tax
purposes
(f)
theterm"enterprise"appliestothecarryingonofanybusiness
(g)
theterms"enterpriseofaContractingState"and"enterpriseoftheotherContractingState"meanrespectively
anenterprisecarriedonbyaresidentofaContractingStateandanenterprisecarriedonbyaresidentofthe
otherContractingState
(h)
the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a
ContractingState,exceptwhentheshiporaircraftisoperatedsolelybetweenplacesintheotherContracting
State
(i)
theterm"competentauthority"means:
(i)
inIndia,theFinanceMinister,GovernmentofIndia,oritsauthorizedrepresentative
(ii)
inEstonia,theMinisterofFinanceorhisauthorizedrepresentative
(j)
the
term
"national"
means:
(i)
anyindividualpossessingthenationalityofaContractingState
(ii)
any legal person, partnership or association deriving its status as such from the laws in force in a
ContractingState
(k)
theterm"tax"meansIndianorEstonian tax,asthecontextrequires, but shall not

include any amount which is payable in respect of any default or omission in
relationtothetaxestowhichthisAgreementappliesorwhichrepresentsapenalty
orfineimposedrelatingtothosetaxes
(l)
theterm"fiscalyear"means:
(i)
inthecaseofIndia,thefinancialyearbeginningonthe1stdayofApril
(ii)
in the case of Estonia, the taxation period as defined in the Estonian

taxationlawsrelatingtoincometax.
2.AsregardstheapplicationoftheAgreementatanytimebyaContractingState,anytermnotdefinedthereinshall,unless
thecontextotherwiserequires,havethemeaningthatithasatthattimeunderthelawofthatStateforthepurposesofthetaxes
towhichtheAgreementapplies.AnymeaningundertheapplicabletaxlawsofthatStateprevailsoverameaninggiventothe
termunderotherlawsofthatState.
ARTICLE4
RESIDENT
1.ForthepurposesofthisAgreement,theterm"residentofaContractingState"meansanypersonwho,underthelawsofthat
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State,isliabletotaxthereinbyreasonofhisdomicile,residence,placeofmanagement,placeofincorporationoranyother
criterionofasimilarnature,andalsoincludesthatStateandanypoliticalsubdivisionorlocalauthoritythereof.Thisterm,
however,doesnotincludeanypersonwhoisliabletotaxinthatStateinrespectonlyofincomefromsourcesinthatState.
2.Wherebyreasonoftheprovisionsofparagraph1anindividualisaresidentofbothContractingStates,thenhisstatusshall
bedeterminedasfollows:
(a)
heshallbedeemedtobearesidentonlyoftheStateinwhichhehasapermanenthomeavailabletohim
ifhehasapermanenthomeavailabletohiminbothStates,heshallbedeemedtobearesidentonlyofthe
Statewithwhichhispersonalandeconomicrelationsarecloser(centreofvitalinterests)
(b)
iftheStateinwhichhehashiscentreofvitalinterestscannotbedetermined,orifhehasnotapermanent
homeavailabletohimineitherState,heshallbedeemedtobearesidentonlyoftheStateinwhichhehas
anhabitualabode
(c)
ifhehasanhabitualabodeinbothStatesorinneitherofthem,heshallbedeemedtobearesidentonlyof
theStateofwhichheisanational
(d)
ifheisanationalofbothStatesorofneitherofthem,thecompetentauthoritiesoftheContractingStates
shallsettlethequestionbymutualagreement.
3.Wherebyreasonoftheprovisionsofparagraph1,apersonotherthananindividualisaresidentofbothContractingStates,
thenthecompetentauthoritiesoftheContractingStatesshallendeavourtoresolvethecasebymutualagreementdueregard
being had to its place of effective management or to any other relevant criterion. In the absence of such agreement, such
person shall not be considered to be a resident of either Contracting State for the purposes of enjoying benefits under the
Agreement.
ARTICLE5
PERMANENTESTABLISHMENT
1.ForthepurposesofthisAgreement,theterm"permanentestablishment"meansafixedplaceofbusinessthroughwhichthe
businessofanenterpriseiswhollyorpartlycarriedon.
2.Theterm"permanentestablishment"includesespecially:
(a)
aplaceofmanagement
(b)
abranch
(c)
anoffice
(d)
afactory
(e)
aworkshop
(f)
asalesoutlet
(g)
awarehouseinrelationtoapersonprovidingstoragefacilitiesforothers
(h)
afarm,plantationorotherplacewhereagricultural,forestry,plantationorrelatedactivitiesarecarriedon
and
(i)
amine,anoilorgaswell,aquarryoranyotherplaceofextractionofnaturalresources.
3. (a) A building site or construction, installation or assembly project or supervisory activities in connection therewith
constitutesapermanentestablishmentonlyifsuchsite,projectoractivitieslastsmorethanninemonths.
(b)Thefurnishingofservices,includingconsultancyservices,byanenterprisethroughemployeesorotherpersonnelengaged
bytheenterpriseforsuchpurpose,constitutesapermanentestablishmentbutonlywhereactivitiesofthatnaturecontinue(for
thesameorconnectedproject)withinthecountryforaperiodorperiodsaggregatingmorethansixmonthswithinany12
monthperiod.
4. Notwithstanding the preceding provisions of this Article the term "permanent establishment" shall be deemed not to
include
(a)
theuseoffacilitiessolelyforthepurposeofstorageordisplayofgoodsormerchandisebelongingtothe
enterprise
(b)
themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
storageordisplay
(c)
themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
processingbyanotherenterprise
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(d)
themaintenanceofafixedplaceofbusinesssolelyforthepurposeofpurchasinggoodsormerchandiseor
ofcollectinginformation,fortheenterprise
(e)
themaintenanceofafixedplaceofbusinesssolelyforthepurposeofcarryingon,fortheenterprise,any
otheractivityofapreparatoryorauxiliarycharacter
(f)
themaintenanceof a fixed place of business solely for any combination of activities mentionedinsub
paragraphs(a)to(e),providedthattheoverallactivityofthefixedplaceofbusinessresultingfromthis
combinationisofapreparatoryorauxiliarycharacter.
5. Notwithstanding the provisions of paragraphs 1 and 2, where a person other than an agent of an independent status to
whom paragraph 6 applies is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that
enterprise shall be deemed to have a permanent establishment in the firstmentioned Contracting State in respect of any
activitieswhichthatpersonundertakesfortheenterprise,ifsuchaperson:
(a)
hasandhabituallyexercisesinthatStateanauthoritytoconcludecontractsinthenameoftheenterprise,
unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised
throughafixedplaceofbusiness,wouldnotmakethisfixedplaceofbusinessapermanentestablishment
undertheprovisionsofthatparagraphor
(b)
has no such authority, but habitually maintains in the firstmentioned State a stock of goods or
merchandisefromwhichheregularlydeliversgoodsormerchandiseonbehalfoftheenterpriseor
(c)
habituallysecuresordersinthefirstmentionedState,whollyoralmostwhollyfortheenterpriseitself.
6.AnenterpriseshallnotbedeemedtohaveapermanentestablishmentinaContractingStatemerelybecauseitcarrieson
businessinthatStatethroughabroker,generalcommissionagentoranyotheragentofanindependentstatus,providedthat
suchpersonsareactingintheordinarycourseoftheirbusiness.However,whentheactivitiesofsuchanagentaredevoted
whollyoralmostwhollyonbehalfofthatenterprise,hewillnotbeconsideredanagentofanindependentstatuswithinthe
meaningofthisparagraph.
7.ThefactthatacompanywhichisaresidentofaContractingStatecontrolsoriscontrolledbyacompanywhichisaresident
oftheotherContractingState,orwhichcarriesonbusinessinthatotherState(whetherthroughapermanentestablishmentor
otherwise),shallnotofitselfconstituteeithercompanyapermanentestablishmentoftheother.
ARTICLE6
INCOMEFROMIMMOVABLEPROPERTY
1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or
forestry)situatedintheotherContractingStatemaybetaxedinthatotherState.
2.Theterm"immovableproperty"shallhavethemeaning,whichithasunderthelawoftheContractingStateinwhichthe
propertyinquestionissituated.Thetermshallinanycaseincludepropertyaccessorytoimmovableproperty,anyrightsof
claim in respect of immovable property, livestock and equipment used in agriculture and forestry, rights to which the
provisions of general lawrespecting landed property apply, usufruct of immovable property and rights to variable or fixed
payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources
ships,boatsandaircraftshallnotberegardedasimmovableproperty.
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. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to
incomefromimmovablepropertyusedfortheperformanceofindependentpersonalservices.
ARTICLE7
BUSINESSPROFITS
1.TheprofitsofanenterpriseofaContractingStateshallbetaxableonlyinthatStateunlesstheenterprisecarriesonbusiness
in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as
aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that
permanentestablishment.
2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other
ContractingStatethroughapermanentestablishmentsituatedtherein,thereshallineachContractingStatebeattributedtothat
permanentestablishmenttheprofitswhichitmightbeexpectedtomakeifitwereadistinctandseparateenterpriseengagedin
thesame orsimilar activitiesunder the same or similar conditions and dealing wholly independently with the enterprise of
whichitisapermanentestablishment.
3.Indeterminingtheprofitsofapermanentestablishment,thereshallbeallowedasdeductionsexpenseswhichareincurred
forthepurposesofthepermanentestablishment,includingexecutiveandgeneraladministrativeexpensessoincurred,whether
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in the State in which the permanent establishment is situated or elsewhere. The expenses to be allowed as deductions by a
ContractingStateshallincludeonlytheexpensesthataredeductibleunderthedomesticlawsofthatState.However,nosuch
deductionshallbeallowedinrespectofamounts,ifany,paid(otherwisethantowardsreimbursementofactualexpenses)by
thepermanentestablishmenttotheheadofficeoftheenterpriseoranyofitsotheroffices,bywayofroyalties,feesorother
similar payments in return for the use of patents, knowhow or other rights, or by way of commission or other charges for
specificservicesperformedorformanagement,or,exceptinthecaseofbankingenterprises,bywayofinterestonmoneys
lenttothepermanentestablishment.Likewise,noaccountshallbetaken,inthedeterminationoftheprofitsofa permanent
establishment, for amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent
establishmenttotheheadofficeoftheenterpriseoranyofitsotheroffices,bywayofroyalties,feesorothersimilarpayments
in return for the use of patents, knowhow or other rights, or by way of commission or other charges for specific services
performedorformanagement,or,exceptinthecaseofabankingenterprise,bywayofinterestonmoneyslenttothehead
officeoftheenterpriseoranyofitsotheroffices.
4.InsofarasithasbeencustomaryinaContractingStatetodeterminetheprofitstobeattributedtoapermanentestablishment
onthebasisofanapportionmentofthetotalprofitsoftheenterprisetoitsvariousparts,nothinginparagraph2shallpreclude
thatContractingStatefromdeterminingtheprofitstobetaxedbysuchanapportionmentasmaybecustomarythemethodof
apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this
Article.
5.Noprofitsshallbeattributedtoapermanentestablishmentbyreasonofthemerepurchasebythatpermanentestablishment
ofgoodsormerchandisefortheenterprise.
6.Forthepurposesoftheprecedingparagraphs,theprofitstobeattributedtothepermanentestablishmentshallbedetermined
bythesamemethodyearbyyearunlessthereisgoodandsufficientreasontothecontrary.
7. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the
provisionsofthoseArticlesshallnotbeaffectedbytheprovisionsofthisArticle.
ARTICLE8
SHIPPINGANDAIRTRANSPORT
1.ProfitsderivedbyanenterpriseofaContractingStatefromtheoperationofshipsoraircraftininternationaltrafficshallbe
taxableonlyinthatState.
2.ProfitsderivedbyatransportationenterprisewhichisaresidentofaContractingStatefromtheuse,maintenance,orrental
of containers (including trailers and other equipment for the transport of containers) used for the transport of goods or
merchandiseininternationaltrafficshallbetaxableonlyinthatContractingStateunlessthecontainersareusedsolelywithin
theotherContractingState.
3. For the purposes of this Article interest on investments directly connected with the operation of ships or aircraft in
internationaltrafficshallberegardedasprofitsderivedfromtheoperationofsuchshipsoraircraftiftheyareintegraltothe
carryingonofsuchbusiness,andtheprovisionsofArticle11shallnotapplyinrelationtosuchinterest.
4.Theprovisionsofparagraph1shallalsoapplytoprofitsfromtheparticipationinapool,ajointbusinessoraninternational
operatingagency.
ARTICLE9
ASSOCIATEDENTERPRISES
1.Where
(a)
anenterpriseofaContractingStateparticipatesdirectlyorindirectlyinthemanagement,controlorcapital
ofanenterpriseoftheotherContractingState,or
(b)
thesamepersonsparticipatedirectlyorindirectlyinthemanagement,controlorcapitalofanenterpriseof
aContractingStateandanenterpriseoftheotherContractingState,
andineithercaseconditionsaremadeorimposedbetweenthetwoenterprisesintheircommercialorfinancialrelationswhich
differ from those which would be made between independent enterprises, then any profits which would, but for those
conditions,haveaccruedtooneoftheenterprises,but,byreasonofthoseconditions,havenotsoaccrued,maybeincludedin
theprofitsofthatenterpriseandtaxedaccordingly.
2.WhereaContractingStateincludesintheprofitsofanenterpriseoftheStateandtaxesaccordinglyprofitsonwhichan
enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits
whichwouldhaveaccruedtotheenterpriseofthefirstmentionedStateiftheconditionsmadebetweenthetwoenterprises
hadbeenthosewhichwouldhavebeenmadebetweenindependententerprises,thenthatotherStateshallmakeanappropriate
adjustmenttotheamountofthetaxchargedthereinonthoseprofits.Indeterminingsuchadjustment,dueregardshallbehad
to the other provisions of this Agreement and the competent authorities of the Contracting States shallif necessaryconsult
eachother.
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ARTICLE10
DIVIDENDS
1.DividendspaidbyacompanywhichisaresidentofaContractingStatetoaresidentoftheotherContractingStatemaybe
taxedinthatotherState.
2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a
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.Thisparagraphshall
notaffectthetaxationofthecompanyinrespectoftheprofitsoutofwhichthedividendsarepaid.
3.Theterm"dividends"asusedinthisArticlemeansincomefromsharesorotherrights,notbeingdebtclaims,participating
inprofits,aswellasincomewhichissubjectedtothesametaxationtreatmentasincomefromsharesbythelawsoftheState
ofwhichthecompanymakingthedistributionisaresident.
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
permanentestablishmentorafixedbasesituatedinthatotherState,norsubjectthecompany'sundistributedprofitstoataxon
thecompany'sundistributedprofits,evenifthedividendspaidortheundistributedprofitsconsistwhollyorpartlyofprofitsor
incomearisinginsuchotherState.
ARTICLE11
INTEREST
1.InterestarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemaybetaxedinthatotherState.
2.However,suchinterestmayalsobetaxedintheContractingStateinwhichitarises,andaccordingtothelawsofthatState,
butifthebeneficialowneroftheinterestisaresidentoftheotherContractingState,thetaxsochargedshallnotexceed10per
centofthegrossamountoftheinterest.
3.Notwithstandingtheprovisionsofparagraph2,interestarisinginaContractingStateshallbeexemptfromtaxinthatState,
providedthatitisderivedandbeneficiallyownedby:
(a)
theGovernment,apoliticalsubdivisionoralocalauthorityoftheotherContractingStateor
(b)
(i)inthecaseofIndia,theReserveBankofIndiaand

(c)
(ii)inthecaseofEstonia,theBankofEstoniaor
anyotherinstitutionasmaybeagreeduponfromtimetotimebetweenthecompetentauthoritiesofthe
ContractingStatesthroughexchangeofletters.
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
securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or
debentures.Theterm"interest"shallnotincludeanyincome,whichistreatedasadividendundertheprovisionsofArticle10.
PenaltychargesforlatepaymentshallnotberegardedasinterestforthepurposeofthisArticle.
5.Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialowneroftheinterest,beingaresidentofaContracting
State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment
situatedtherein,orperformsinthatotherStateindependentpersonalservicesfromafixedbasesituatedtherein,andthedebt
claiminrespectofwhichtheinterestispaidiseffectivelyconnectedwithsuchpermanentestablishmentorfixedbase.Insuch
casetheprovisionsofArticle7orArticle14,asthecasemaybeshallapply.
6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the
person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent
establishmentorafixedbaseinconnectionwithwhichtheindebtednessonwhichtheinterestispaidwasincurred,andsuch
interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in
whichthepermanentestablishmentorfixedbaseissituated.
7.Where,byreasonofaspecialrelationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsome
otherperson,theamountoftheinterest,havingregardtothedebtclaimforwhichitispaid,exceedstheamountwhichwould
havebeenagreeduponbythepayerandthebeneficialownerintheabsenceofsuchrelationship,theprovisionsofthisArticle
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shallapplyonlytothelastmentionedamount.Insuchcase,theexcesspartofthepaymentsshallremaintaxableaccordingto
thelawsofeachContractingState,dueregardbeinghadtotheotherprovisionsofthisAgreement.
ARTICLE12
ROYALTIESANDFEESFORTECHNICALSERVICES
1.RoyaltiesorfeesfortechnicalservicesarisinginaContractingStateandpaidtoaresidentoftheotherContractingState
maybetaxedinthatotherState.
2.However,suchroyaltiesorfeesfortechnicalservicesmayalsobetaxedintheContractingStateinwhichtheyarise,and
accordingtothelawsofthatState,butifthebeneficialowneroftheroyaltiesorfeesfortechnicalservicesisaresidentofthe
otherContractingStatethetaxsochargedshallnotexceed10percentofthegrossamountoftheroyaltiesorfeesfortechnical
services.
3.(a)Theterm"royalties"asusedinthisArticlemeanspaymentsofanykindreceivedasaconsiderationfortheuseof,orthe
right to use, any copyright of literary, artistic or scientific work including cinematograph films or films or tapes used for
televisionorradiobroadcasting,anypatent,trademark,designormodel,plan,secretformulaorprocess,orfortheuseof,or
the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or
scientificexperience.
(b)Theterm"feesfortechnicalservices"asusedinthisArticlemeanspaymentsofanykind,otherthanthosementionedin
Articles 14 and 15 of this Agreement as consideration for managerial or technical or consultancy services, including the
provisionofservicesoftechnicalorotherpersonnel.
4.Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialowneroftheroyalties,orfeesfortechnicalservices
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 right or property 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
provisionsofArticle7orArticle14,asthecasemaybe,shallapply.
5.(a)Royalties and fees for technical services shall be deemed to arise in a Contracting State when the payer is that State
itself,apoliticalsubdivision,alocalauthority,oraresidentofthatState.Where,however,thepersonpayingtheroyaltiesor
fees for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the liability to pay the royalties or fees for technical services was
incurred,andsuchroyaltiesorfeesfortechnicalservicesarebornebysuchpermanentestablishmentorfixedbase,thensuch
royaltiesorfeesfortechnicalservicesshallbedeemedtoariseintheContractingStateinwhichthepermanentestablishment
orfixedbaseissituated.
(b)Whereundersubparagraph(a)royaltiesorfeesfortechnicalservicesdonotariseinoneoftheContractingStates,andthe
royalties relate to the use of, or the right to use, the right or property, or the fees for technical services relate to services
performed, in one of the Contracting States, the royalties or fees for technical services shall be deemed to arise in that
ContractingState.
6.Where,byreasonofaspecialrelationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsome
otherperson,theamountoftheroyaltiesorfeesfortechnicalservices,havingregardtotheuse,rightorinformationforwhich
theyarepaid,exceedstheamountwhichwouldhavebeenagreeduponbythepayerandthebeneficialownerintheabsenceof
suchrelationship,theprovisionsofthisArticleshallapplyonlytothelastmentionedamount.Insuchcase,theexcesspartof
the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other
provisionsofthisAgreement.
ARTICLE13
CAPITALGAINS
1.GainsderivedbyaresidentofaContractingStatefromthealienationofimmovablepropertyreferredtoinArticle6and
situatedintheotherContractingStatemaybetaxedinthatotherState.
2.GainsderivedbyaresidentofaContractingStatefromthealienationofsharesderivingmorethan50percentoftheirvalue
directlyorindirectlyfromimmovablepropertysituatedintheotherContractingStatemaybetaxedinthatotherState.
3.Gainsfromthealienationofmovablepropertyformingpartofthebusinesspropertyofapermanentestablishmentwhichan
enterpriseofaContractingStatehasintheotherContractingStateorofmovablepropertypertainingtoafixedbaseavailable
toaresidentofaContractingStateintheotherContractingStateforthepurposeofperformingindependentpersonalservices,
includingsuchgainsfrom the alienation of such a permanent establishment (alone or with the whole enterprise) or of such
fixedbase,maybetaxedinthatotherState.
4.GainsderivedbyanenterpriseofaContractingStateoperatingshipsoraircraftininternationaltrafficfromthealienationof
shipsoraircraftoperatedininternationaltraffic,ormovablepropertypertainingtotheoperationofsuchshipsoraircraftshall
betaxableonlyinthatContractingState.
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5. Gains from the alienation of shares other than those mentioned in paragraph 2 in a company which is a resident of a
ContractingStatemaybetaxedinthatState.
6.Gainsfromthealienationofanypropertyotherthanthatreferredtointheprecedingparagraphsshallbetaxableonlyinthe
ContractingStateofwhichthealienatorisaresident.
ARTICLE14
INDEPENDENTPERSONALSERVICES
1.IncomederivedbyanindividualwhoisaresidentofaContractingStatefromtheperformanceofprofessionalservicesor
other independent activities of a similar character shall be taxable only in that State except in the following circumstances
whensuchincomemayalsobetaxedintheotherContractingState:
(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 Contracting State is for a period or periods amounting to or exceeding in the
aggregate183daysinanyperiodof12monthsinthatcase,onlysomuch of the income as is derived
fromhisactivitiesperformedinthatotherStatemaybetaxedinthatotherState.
2. The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching
activitiesaswellastheindependentactivitiesofphysicians,lawyers,engineers,architects,surgeons,dentistsandaccountants.
ARTICLE15
DEPENDENTPERSONALSERVICES
1. Subject to the provisions of Articles 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
2.Notwithstandingtheprovisionsofparagraph1,remunerationderivedbyaresidentofaContractingStateinrespectofan
employmentexercisedintheotherContractingStateshallbetaxableonlyinthefirstmentionedStateif:
(a)
therecipientispresentintheotherStateforaperiodorperiodsnotexceedingintheaggregate183daysin
anytwelvemonthperiodcommencingorendinginthefiscalyearconcerned,and
(b)
theremunerationispaidby,oronbehalfof,anemployerwhoisnotaresidentoftheotherState,and
(c)
theremunerationisnotbornebyapermanentestablishmentorafixedbasewhichtheemployerhasinthe
otherState.
3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised
aboardashiporaircraftoperatedininternationaltraffic,byanenterpriseofaContractingStatemaybetaxedinthatState.
ARTICLE16
DIRECTORS'FEES
1. Subject to the provisions of Articles 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
ARTICLE17
ARTISTESANDSPORTSPERSONS
1. Notwithstanding the provisions of Articles 7, 14 and 15, income derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or television artiste, oramusician, or as a sportsperson, from personal
activitiesassuchexercisedintheotherContractingState,maybetaxedinthatotherState.
2.Whereincomeinrespectofpersonalactivitiesexercisedbyanentertainerorasportspersoninhiscapacityassuchaccrues
not to the entertainer or sportsperson himself but to another person, that income may, notwithstanding the provisions of
Articles7,14and15,betaxedintheContractingStateinwhichtheactivitiesoftheentertainerorsportspersonareexercised.
3.Theprovisionsofparagraphs1and2,shallnotapplytoincomederivedfromactivitiesperformedinaContractingStateby
entertainers or sportspersons if the visit to that State is substantially supported by public funds of one or both of the
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ContractingStatesorofpoliticalsubdivisionsorlocalauthoritiesthereof.Insuchacase,theincomeshallbetaxableonlyin
theContractingStateofwhichtheindividualentertainerorsportspersonisaresident.
ARTICLE18
PENSIONS
Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a
ContractingStateinconsiderationofpastemploymentshallbetaxableonlyinthatState.
ARTICLE19
GOVERNMENTSERVICE
1.(a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political sub
divisionoralocalauthoritythereoftoanindividualinrespectofservicesrenderedtothatStateorsubdivisionorauthority
shallbetaxableonlyinthatState.
(b)However,suchsalaries,wagesandothersimilarremunerationshallbetaxableonlyintheotherContractingStateifthe
servicesarerenderedinthatStateandtheindividualisaresidentofthatStatewho:
(i)
isanationalofthatStateor
(ii)
didnotbecomearesidentofthatStatesolelyforthepurposeofrenderingtheservices.
2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority
thereoftoanindividualinrespectofservicesrenderedtothatStateorsubdivisionorauthorityshallbetaxableonlyinthat
State.
(b)However,suchpensionshallbetaxableonlyintheotherContractingStateiftheindividualisaresidentof,andanational
of,thatState.
3.TheprovisionsofArticles15,16,17and18shallapplytosalaries,wagesandothersimilarremunerationandtopensionsin
respectofservicesrenderedinconnectionwithabusinesscarriedonbyaContractingStateorapoliticalsubdivisionora
localauthoritythereof.
ARTICLE20
PROFESSORS,TEACHERSANDRESEARCHSCHOLARS
1.AnindividualwhovisitsoneoftheContractingStatesforthepurposeofteachingorcarryingoutresearchatauniversity,
collegeoreducationalinstitutionrecognizedbythatState,andwhoimmediatelybeforethatvisitwasaresidentofthatother
ContractingState,shallbetaxableonlyinthatotherStateonanyremunerationforsuchteachingorresearch.However,this
paragraphshallapplyonlyforaperiodnotexceedingtwoyearsfromthedatetheindividualfirstvisitsthefirstmentioned
State.
2.ThisArticleshallapplytoincomefromresearchonlyifsuchresearchisundertakenbytheindividualinthepublicinterest
andnotprimarilyforthebenefitofsomeprivatepersonorpersons.
3.ForthepurposesofthisArticle,anindividualshallbedeemedtobearesidentofaContractingStateifheisresidentinthat
StateinthefiscalyearinwhichhevisitstheotherContractingStateorintheimmediatelyprecedingfiscalyear.
ARTICLE21
STUDENTS
1.AstudentwhoisorwasaresidentofoneoftheContractingStatesimmediatelybeforevisitingtheotherContractingState
andwhoispresentinthatotherContractingStatesolelyforthepurposeofhiseducationortraining,shallbesidesgrants,loans
and scholarships be exempt from tax in that other State on payments made to him for the purpose of his maintenance,
educationortraining,providedthatsuchpaymentsarisefromsourcesoutsidethatState.
2. In respect of grants, scholarship and remuneration from employment not covered by paragraph 1, a student referred to
paragraph1shall,inaddition,beentitledduringsucheducationortrainingtothesameexemptions,reliefsorreductionsin
respectoftaxesavailabletoresidentsoftheContractingStatewhichheisvisiting.
3. The benefits of this Article shall extend only for such period of time as may be reasonable or customarily required to
completetheeducationortrainingundertaken,butinnoeventshallanyindividualhavethebenefitsofthisArticle,formore
thanfiveconsecutiveyearsfromthedateofhisfirstarrivalinthatotherState.
ARTICLE22
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OTHERINCOME
1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles 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,beingaresidentofaContracting 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
effectivelyconnectedwithsuchpermanentestablishmentorfixedbase.InsuchcasetheprovisionsofArticle7orArticle14,
asthecasemaybe,shallapply.
3.Notwithstandingtheprovisionsofparagraph1,ifaresidentofaContractingStatederivesincomefromsourceswithinthe
otherContractingStateinformoflotteries,crosswordpuzzles,racesincludinghorseraces,cardgamesandothergamesofany
sortorgamblingorbettingofanynaturewhatsoever,suchincomemaybetaxedintheotherContractingState.
ARTICLE23
METHODSFORELIMINATIONOFDOUBLETAXATION
Doubletaxationshallbeeliminatedasfollows:
1.InIndia:
(a)
Where a resident of India derives income which, in accordance with the provisions of this Agreement,
maybetaxedinEstonia,Indiashallallowasadeductionfromthetaxontheincomeofthatresident,an
amountequaltothetaxpaidinEstonia.
Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is
given,whichisattributable,asthecasemaybe,totheincomewhichmaybetaxedinEstonia.
(b)
Where in accordance with any provision of the Agreement income derived by a resident of India is
exempt from tax in India, India may nevertheless, in calculating the amount of tax on the remaining
incomeofsuchresident,takeintoaccounttheexemptedincome.
2.InEstonia:
(a)
WherearesidentofEstoniaderivesincomewhich,inaccordancewiththeprovisionsofthisAgreement,
hasbeentaxedinIndia,Estoniashall,subjecttotheprovisionsofsubparagraphs(b)and(c)exemptsuch
incomefromtax.
(b)
Where a resident ofEstonia derives income which in accordance with the provisions of paragraph 2 of
Articles 10, 11 and 12 may be taxed in India, Estonia shall allow as a deduction from the tax on the
income of that resident an amount equal to the tax paid in India. Such deduction shall not, however,
exceedthepartofthetax,ascomputedbeforethedeductionisgiven,whichisattributabletosuchitemsof
incomederivedfromIndia.
(c)
Where in accordance with any provision of the Agreement income derived by a resident of Estonia is
exemptfromtaxinEstonia,Estoniamaynevertheless,incalculatingtheamountoftaxontheremaining
incomeofsuchresident,takeintoaccounttheexemptedincome.
ARTICLE24
NONDISCRIMINATION
1.NationalsofaContractingState shall not be subjected in the other Contracting State to any taxation oranyrequirement
connectedtherewith,whichisotherormoreburdensomethanthetaxationandconnectedrequirementstowhichnationalsof
that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision
shall,notwithstandingtheprovisionsofArticle1,alsoapplytopersonswhoarenotresidentsofoneorbothoftheContracting
States.
2.Thetaxationonapermanentestablishment,whichanenterpriseofaContractingStatehasintheotherContractingState,
shallnotbelessfavourablyleviedinthatotherStatethanthetaxationleviedonenterprisesofthatotherStatecarryingonthe
same activities. This provision shall not be construed as preventing a Contracting State from charging the profits of a
permanent establishment which a company of the other Contracting State has in the first mentioned State at a rate of tax
which is not more than ten percentage points higher than that imposed on the profits of a similar company of the first
mentionedContractingState,norasbeinginconflictwiththeprovisionsofparagraph3ofArticle7.
3.Exceptwheretheprovisionsof paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply,
interest,royaltiesandotherdisbursementspaidbyanenterpriseofaContractingStatetoaresidentoftheotherContracting
Stateshall,forthepurposeofdeterminingthetaxableprofitsofsuchenterprise,bedeductibleunderthesameconditionsasif
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theyhadbeenpaidtoaresidentofthefirstmentionedState.
4.EnterprisesofaContractingState,thecapitalofwhichiswhollyorpartlyownedorcontrolled,directlyorindirectly,byone
or more residents of the other Contracting State, shall not be subjected in the firstmentioned State to any taxation or any
requirementconnectedtherewithwhichisotherormoreburdensomethanthetaxationandconnectedrequirementstowhich
othersimilarenterprisesofthefirstentionedStateareormaybesubjected.
5. The provisions of this Article shall not be construed as obliging a Contracting State to grant to residents of the other
Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status orfamily
responsibilitieswhichitgrantstoitsownresidents.
6. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and
description.
ARTICLE25
MUTUALAGREEMENTPROCEDURE
1.WhereapersonconsidersthattheactionsofoneorbothoftheContractingStatesresultorwillresultforhimintaxationnot
inaccordancewiththeprovisionsofthisAgreement,hemay,irrespectiveoftheremediesprovidedbythedomesticlawof
thoseStates,presenthiscasetothecompetentauthorityoftheContractingStateofwhichheisaresidentor,ifhiscasecomes
underparagraph1ofArticle24,tothatoftheContractingStateofwhichheisanational.Thecasemustbepresentedwithin
three years from the first notification of the action resulting in taxation not in accordance with the provisions of the
Agreement.
2.Thecompetentauthorityshallendeavour,iftheobjectionappearstoittobejustifiedandifitisnotitselfabletoarriveata
satisfactorysolution,toresolvethecasebymutualagreementwiththecompetentauthorityoftheotherContractingState,with
a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be
implementednotwithstandinganytimelimitsinthedomesticlawoftheContractingStates.
3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or
doubtsarisingastotheinterpretationorapplicationoftheAgreement.Theymayalsoconsulttogetherfortheeliminationof
doubletaxationincasesnotprovidedforintheAgreement.
4.ThecompetentauthoritiesoftheContractingStatesmaycommunicatewitheachotherdirectly,forthepurposeofreaching
anagreementinthesenseoftheprecedingparagraphs.Whenitseemsadvisableinordertoreachagreementtohaveanoral
exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent
authoritiesoftheContractingStates.
ARTICLE26
EXCHANGEOFINFORMATION
1. The competent authorities of the Contracting States shall exchange such information (including documents or certified
copiesofthedocuments)asisforeseeablyrelevantforcarryingouttheprovisionsofthisAgreementortotheadministration
or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting
States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the
Agreement.TheexchangeofinformationisnotrestrictedbyArticles1and2.
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)concernedwiththeassessmentorcollectionof,theenforcementorprosecutioninrespectof,
thedeterminationofappealsinrelationtothetaxesreferredtoinparagraph1,ortheoversightoftheabove.Suchpersonsor
authoritiesshallusetheinformationonlyforsuchpurposes.Theymaydisclosetheinformationinpubliccourtproceedingsor
in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other
purposes when such information may be used for such other purposes under the laws of both States and the competent
authorityofthesupplyingStateauthorisessuchuse.
3.Innocaseshalltheprovisionsofparagraphs1and2beconstruedsoastoimposeonaContractingStatetheobligation:
(a)
tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorofthe
(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
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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
fiduciarycapacityorbecauseitrelatestoownershipinterestsinaperson.
ARTICLE27
ASSISTANCEINTHECOLLECTIONOFTAXES
1. The Contracting States shall lend assistance to each other in the collection of revenue claims. This assistance is not
restrictedbyArticles1and2.ThecompetentauthoritiesoftheContractingStatesmaybymutualagreementsettlethemodeof
applicationofthisArticle.
2.Theterm"revenueclaim"asusedinthisArticlemeansanamountowedinrespectoftaxesofeverykindanddescription
imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation
thereunderisnotcontrarytothisAgreementoranyotherinstrumentto whichthe ContractingStatesare parties,aswellas
interest,administrativepenaltiesandcostsofcollectionorconservancyrelatedtosuchamount.
3.WhenarevenueclaimofaContractingStateisenforceableunderthelawsofthatStateandisowedbyapersonwho,atthat
time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent
authorityofthatState,beacceptedforpurposesofcollectionbythecompetentauthorityoftheotherContractingState.That
revenueclaimshallbecollectedbythatotherStateinaccordancewiththeprovisionsofitslawsapplicabletotheenforcement
andcollectionofitsowntaxesasiftherevenueclaimwerearevenueclaimofthatotherState.
4.WhenarevenueclaimofaContractingStateisaclaiminrespectofwhichthatStatemay,underitslaw,takemeasuresof
conservancy with a view to ensure its collection, that revenue claim shall, at therequest of the competent authority of that
State,beacceptedforpurposesoftakingmeasuresofconservancybythecompetentauthorityoftheotherContractingState.
ThatotherStateshalltakemeasuresofconservancyinrespectofthatrevenueclaiminaccordancewiththeprovisionsofits
lawsasiftherevenueclaimwerearevenueclaimofthatotherStateevenif,atthetimewhensuchmeasuresareapplied,the
revenueclaimisnotenforceableinthefirstmentionedStateorisowedbyapersonwhohasarighttopreventitscollection.
5. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State for purposes of
paragraph3or4shallnot,inthatState,besubjecttothetimelimitsoraccordedanypriorityapplicabletoarevenueclaim
underthelawsofthatStatebyreasonofitsnatureassuch.Inaddition,arevenueclaimacceptedbyaContractingStateforthe
purposesofparagraph3or4shallnot,inthatState,haveanypriorityapplicabletothatrevenueclaimunderthelawsofthe
otherContractingState.
6.Proceedingswithrespecttotheexistence,validityortheamountofarevenueclaimofaContractingStateshallonlybe
brought before the courts or administrative bodies of that State. Nothing in this Article shall be construed as creating or
providinganyrighttosuchproceedingsbeforeanycourtoradministrativebodyoftheotherContractingState.
7. Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other
ContractingStatehascollectedandremittedtherelevantrevenueclaimtothefirstmentionedState,therelevantrevenueclaim
ceasestobe:
(a)
inthecaseofarequestunderparagraph3,arevenueclaimofthefirstmentionedStatethatisenforceable
underthelawsofthatStateandisowedbyapersonwho,atthattime,cannot,underthelawsofthatState,
preventitscollection,or
(b)
inthecaseofarequestunderparagraph4,arevenueclaimofthefirstmentionedStateinrespectofwhich
thatStatemay,underitslaws,takemeasuresofconservancywithaviewtoensureitscollection,
thecompetentauthorityofthefirstmentionedStateshallpromptlynotifythecompetentauthorityoftheotherStateofthat
factand,attheoptionoftheotherState,thefirstmentionedStateshalleithersuspendorwithdrawitsrequest.
8.InnocaseshalltheprovisionsofthisArticlebeconstruedsoastoimposeonaContractingStatetheobligation:
(a)
tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorofthe
(b)
tocarryoutmeasureswhichwouldbecontrarytopublicpolicy(ordrepublic)
(c)
toprovideassistanceiftheotherContractingStatehasnotpursuedallreasonablemeasuresofcollection
orconservancy,asthecasemaybe,availableunderitslawsoradministrativepractice
(d)
to provide assistance in those cases where the administrative burden for that State is clearly
disproportionatetothebenefittobederivedbytheotherContractingState.
ARTICLE28
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LIMITATIONOFBENEFITS
1.NothinginthisAgreementshallaffecttheapplicationofthedomesticprovisionstopreventtaxevasionortaxavoidance.
2. Benefits of this Agreement shall not be available to a resident of a Contracting State, or with respect to any transaction
undertakenbysucharesident,ifthemainpurposeoroneofthemainpurposesofthecreationorexistenceofsucharesident
orofthetransactionundertakenbyhim,wastoobtainbenefitsunderthisAgreementthatwouldnototherwisebeavailable.
3.ThecaseoflegalentitiesnothavingbonafidebusinessactivitiesshallbecoveredbytheprovisionsofthisArticle.
4. Where by reason of this Article a resident of a Contracting State is denied the benefits of this Agreement in the other
Contracting State, the competent authority of the other Contracting State shall notify the competent authority of the first
mentionedContractingState.
ARTICLE29
MEMBERSOFDIPLOMATICMISSIONSANDCONSULARPOSTS
Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the
generalrulesofinternationallaworundertheprovisionsofspecialagreements.
ARTICLE30
ENTRYINTOFORCE
1.TheContractingStatesshallnotifyeachotherinwriting,throughdiplomaticchannels,ofthecompletionoftheprocedures
requiredbytherespectivelawsfortheentryintoforceofthisAgreement.
2.ThisAgreementshallenterintoforceonthedateofthelaterofthenotificationsreferredtoinparagraph1ofthisArticle.
3.TheprovisionsofthisAgreementshallhaveeffect:
(a)
in India, in respect of income derived in any fiscal yearbeginning

onorafterthefirstdayofAprilnextfollowingthecalendaryearin
whichtheAgreemententersintoforceand
(b)
inEstonia:
(i) inrespectoftaxeswithheldatsource,onincomederivedonorafterthefirstdayofJanuarynextfollowingtheyearin
whichtheAgreemententersintoforce
(ii) in respect of other taxes on income, for taxes chargeable for any fiscal year beginning on or after the first day of
JanuarynextfollowingtheyearinwhichtheAgreemententersintoforce.
ARTICLE31
TERMINATION
This Agreement shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may
terminatetheAgreement,throughdiplomaticchannels,bygivingnoticeofterminationatleastsixmonthsbeforetheendof
anycalendaryearbeginningaftertheexpirationoffiveyearsfromthedateofentryintoforceoftheAgreement.Insuchevent,
theAgreementshallceasetohaveeffect:
(a)
inIndia,inrespectofincomederivedinanyfiscalyearonorafter
thefirstdayofAprilnextfollowingthecalendaryearinwhichthe
noticeisgiven
(b)
inEstonia,
(i) inrespectoftaxeswithheldatsource,onincomederivedonorafterthefirstdayofJanuarynextfollowingtheyearin
whichthenoticeisgiven
(ii) inrespectofothertaxesonincome,fortaxeschargeableforanytaxationyearbeginningonorafterthefirstdayof
Januarynextfollowingtheyearinwhichthenoticeisgiven.
InWitnessWhereoftheundersigned,dulyauthorizedthereto,havesignedthisAgreement.
DoneinduplicateatTallinn,this19thdayofSeptember,2011,eachintheHindi,EstonianandEnglishlanguages,alltexts
beingequallyauthentic.Incaseofdivergenceofinterpretation,theEnglishtextshallprevail.
PROTOCOL
At the signing of the Agreement between the Republic of India and the Republic of Estonia for the Avoidance of Double
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IncomeTaxDepartment
TaxationandthePreventionofFiscalEvasionwithRespecttoTaxesonIncome(hereinafterreferredtoas"theAgreement")
theundersignedhaveagreeduponthefollowingprovisionswhichformanintegralpartoftheAgreement.
1.AdArticles
It is understood that on the date of signing of this Agreement none of theagreements for theavoidanceof double taxation
concluded by Estonia provide for special provision deeming an insurance enterprise of a Contracting State to have a
permanent establishment in the other Contracting State if it collects premiums or insures risks in the territory of that other
Stateotherwisethanthroughanagentofindependentstatus.
However,ifafterthatdate,suchspecialprovisionisincludedinanyagreementfortheavoidanceofdoubletaxationconcluded
byEstonia,thenthecompetentauthorityofEstoniashallnotifythecompetentauthorityofIndiaaboutsuchinclusionandafter
consultations between the competent authorities of the Contracting States, such provision shall also be considered for this
Agreement.
2.AdArticle6
Itisunderstoodthatallincomeandgainsfromthealienationofimmovablepropertyreferredtoinparagraph2ofArticle6and
situatedinaContractingStatemaybetaxedinthatStateinaccordancewiththeprovisionsofArticle13ofthisAgreement.
Inwitnesswhereoftheundersigned,dulyauthorizedthereto,havesignedthisProtocol.
DoneinduplicateatTallinn,this19thdayofSeptember,2011,eachintheHindi,EstonianandEnglishlanguages,alltexts
beingequallyauthentic.Incaseofdivergenceofinterpretation,theEnglishtextshallprevail.
Copyright.TaxmannPublicationsPvt.Ltd.
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