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NORWAY
Section90oftheIncometaxAct,1961DoubleTaxationAgreement AgreementforAvoidanceofDoubleTaxation
andPreventionoffiscalevasionwithforeigncountriesNorway
WhereasanAgreementbetweentheRepublicofIndiaandtheKingdomofNorwayfortheAvoidanceofDoubleTaxationand
thePreventionofFiscalEvasionwithrespecttoTaxesonIncomeandonCapitalwassignedatNewDelhionthe2nddayof
February,2011
Andwhereas,thedateofentryintoforceofthesaidProtocolisthe20thdayofDecember,2011,beingthedateoflaterofthe
notificationsofsatisfactionofalllegalrequirementsandproceduresasrequiredbytherespectivelawsforentryintoforceof
theAgreement,inaccordancewithParagraph2ofArticle31ofthesaidAgreement
Andwhereas,subparagraph(a)ofParagraph3ofArticle31ofthesaidAgreementprovidesthatthe provisionsofthesaid
AgreementshallhaveeffectinIndiainrespectofincomederivedorcapitalownedinanyfiscalyearbeginningonorafterthe
firstdayofAprilnextfollowingthecalendaryearinwhichtheAgreemententeredintoforce
Now, therefore, in exercise of the powers conferred by section 90 of the Incometax Act, 1961 (43 of 1961), the Central
GovernmentherebydirectsthatalltheprovisionsofthesaidAgreement,assetoutintheAnnexurehereto,shallbegiveneffect
tointheUnionofIndia.InrespectofincomeandonCapital arising in any fiscal year beginning on or after the 1st day of
April,2012.
NotificationNo.24/2012[F.NO.505/3A/81FTDI],DATED1962012*
AGREEMENTBETWEENTHEREPUBLICOFINDIAANDTHEKINGDOMOFNORWAYFORTHE
AVOIDANCEOFDOUBLETAXATIONANDTHEPREVENTIONOFFISCALEVASIONWITHRESPECTTO
TAXESONINCOMEANDONCAPITAL
TheGovernmentoftheRepublicofIndiaandtheGovernmentoftheKingdomofNorway,desiringtoconcludeanAgreement
fortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwithrespect to taxes on income and on capital and
withaviewtopromotingeconomiccooperationbetweenthetwocountries,haveagreedasfollows:
*SeealsooldAgreementvideNotificationNo.GSR756(E),dated991987.
ARTICLE1
PERSONSCOVERED
ThisAgreementshallapplytopersonswhoareresidentsofoneorbothoftheContractingStates.

ARTICLE2
TAXESCOVERED
1.ThisAgreementshallapplytotaxesonincomeandoncapitalimposedonbehalfofaContractingStateorofitspoliticalsub
divisionsorlocalauthorities,irrespectiveofthemannerinwhichtheyarelevied.
2.Thereshallberegardedastaxesonincomeandoncapitalalltaxesimposedontotalincome,ontotalcapital,oronelements
ofincomeorofcapital,includingtaxesongainsfromthealienationofmovableorimmovableproperty,andtaxesonthetotal
amountsofwagesorsalariespaidbyenterprises.
3.TheexistingtaxestowhichtheAgreementshallapplyareinparticular:
(a)

inIndia:

(i) theincometax,includinganysurchargethereonand
(ii) thetaxoncapital(thewealthtax),includinganysurchargethereon(hereinafterreferredtoas"Indiantax")
(b)
(i)

inthecaseofNorway:
thetaxongeneralincome

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(ii)

thetaxonpersonalincome

(iii)

thespecialtaxonpetroleumincome

(iv)

theresourcerenttaxonincomefromproductionofhydroelectricpower

(v)

thewithholdingtaxondividends

(vi)

thewithholdingtaxonpensions.

(vii)

thetaxonremunerationtononresidentartistes,etc.

(viii)

thetaxoncapital(thewealthtax)

(hereinafterreferredtoas"Norwegiantax").

4.TheAgreementshallapply alsotoanyidenticalorsubstantiallysimilartaxesthatareimposedafterthedateofsignatureof
theAgreementinadditionto,orinplaceof,theexistingtaxes.Thecompetent authoritiesoftheContractingStatesshallnotify
eachotherofanysignificantchangesthathavebeenmadeintheirrespectivetaxationlaws.

ARTICLE3
GENERALDEFINITIONS
1.ForthepurposesofthisAgreement,unlessthecontextotherwiserequires:
(a)

the term "India" means the territory of India and includes the territorial sea and airspace above it, as well as any
othermaritimezonein"WhichIndiahassovereignrights,otherrightsandjurisdiction,accordingtotheIndianlaw
andinaccordancewithinternationallaw,includingtheU.N.ConventionontheLawoftheSea

(b)

theterm"Norway"meanstheKingdomofNorway,andincludesthelandterritory,internalwaters,theterritorialsea
and the area beyond the territorial sea where the Kingdom of Norway, according to Norwegian legislation and in
accordancewithinternationallaw,mayexerciseherrightswithrespecttotheseabedandsubsoilandtheirnatural
resourcesthetermdoesnotcompriseSvalbard,JanMayenandtheNorwegiandependenciesoutsideEurope

(c)

theterms"aContractingState"and"theotherContractingState"meanIndiaorNorway,asthecontextrequires

(d)

theterm"person"includesanindividual,acompany,abodyofpersonsandanyotherentitywhichistreatedasa
taxableunitunderthetaxationlawsinforceintherespectiveContractingStates

(e)

theterm"company"meansanybodycorporateoranyentitywhichistreatedasabodycorporatefortaxpurposes

(f)

theterm"enterprise"appliestothecarryingonofanybusiness

(g)

the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" 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

(h)

theterm"internationaltraffic"meansanytransportbyashiporaircraftoperatedbyanenterpriseofaContracting
State,exceptwhentheshiporaircraftisoperatedsolelybetweenplacesintheotherContractingState

(i)

theterm"competentauthority"means:

(i)

inIndia:theFinanceMinister,GovernmentofIndia,oritsauthorisedrepresentative

(ii)

inNorway:theMinisterofFinanceortheMinister'sauthorisedrepresentative

(j)

the term "national", in relation to a

ContractingState,means:

(i)

anyindividualpossessingthenationalityofthatContractingState

(ii)

any legal person, partnership or association deriving its status as such from the laws in force in that
ContractingState

(k)

theterm"tax"meansIndianorNorwegiantax,asthecontextrequires,butshallnotinclude

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anyamountwhichispayableinrespectofanydefaultoromissioninrelationtothetaxesto
whichthisAgreementappliesorwhichrepresentsapenaltyorfineimposedrelatingtothose
taxes
(l)

theterm"fiscalyear"means:

(i)

in the case of India: the financial year beginning on the 1st day of
April

(ii)

inthecaseofNorway:thecalendaryear.

2.AsregardstheapplicationoftheAgreementatanytimebyaContractingStateanytermnotdefinedthereinshall,unlessthe
contextotherwiserequires,havethemeaningthatithasatthattimeunderthelawofthatStateforthepurposesofthetaxesto
whichtheAgreementapplies,anymeaningunderthe applicabletaxlawsofthatStateprevailingoverameaninggiventothe
termunderotherlawsofthatState.

ARTICLE4
RESIDENT
1.ForthepurposesofthisAgreement,theterm"residentofaContractingState"meansanypersonwho,underthelawsofthat
State,isliabletotaxthereinbyreasonofhisdomicile,residence,placeofmanagementoranyothercriterionofasimilarnature,
andalsoincludesthatStateandanypoliticalsubdivisionorlocalauthoritythereof,provided,however,that:
(a)

thisterm,doesnot include any person who is liable to tax in that State in respect only of income from
sourcesinthatStateand

(b)

inthecaseofincomederivedorpaidbyapartnership,estate,ortrust,thistermappliesonlytotheextent
thattheincomederivedbysuchpartnership,estate,ortrustissubjecttotaxinthatstateastheincomeofa
resident,eitherinitshandsorinthehandsofitspartnersorbeneficiaries.

2.Wherebyreasonoftheprovisionsofparagraph1anindividualisaresidentofbothContractingStates,thenhisstatusshall
bedeterminedasfollows:
(a)

heshallbedeemedtobearesidentonlyoftheStateinwhichhehasapermanenthomeavailabletohim
ifhehasapermanenthomeavailabletohiminbothStates,heshallbedeemedtobearesidentonlyofthe
Statewithwhichhispersonalandeconomicrelationsarecloser(centreofvitalinterests)

(b)

iftheStateinwhichhehashiscentreofvitalinterestscannotbedetermined,orifhehasnotapermanent
homeavailabletohimineitherState,heshallbedeemedtobearesidentonlyoftheStateinwhichhehas
anhabitualabode

(c)

ifhehasanhabitualabodeinbothStatesorinneitherofthem,heshallbedeemedtobearesidentonlyof
theStateofwhichheisanational

(d)

ifheisanationalofbothStatesorofneitherofthem,thecompetentauthoritiesoftheContractingStates
shallendeavourtosettlethequestionbymutualagreement.

3.Wherebyreasonoftheprovisionsofparagraph1apersonotherthananindividualisaresidentofbothContractingStates,
thenitshallbedeemedtobearesidentonlyoftheStateinwhichitsplaceofeffectivemanagementissituated.IftheStatein
which its place of effective management is situated cannot be determined, then the competent authorities of the Contracting
Statesshallendeavourtosettlethequestionbymutualagreement.

ARTICLE5
PERMANENTESTABLISHMENT
1.ForthepurposesofthisAgreement,theterm"permanentestablishment"meansafixedplaceofbusinessthroughwhichthe
businessofanenterpriseiswhollyorpartlycarriedon.
2.Theterm"permanentestablishment"includesespecially:
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(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.Theterm"permanentestablishment"alsoencompasses:
(a)

a building site, a construction, assembly or installation project or supervisory activities in connection

therewith,butonlywheresuchsite,projectoractivitiescontinueforaperiodofmorethanthreemonths
togetherwithothersuchsites,projectsoractivities,ifany

(b)

thefurnishingof services, including consultancy services, by an enterprise through employees or other

personnelengagedbytheenterpriseforsuchpurpose,butonlywhereactivitiesofthatnaturecontinue(for
thesameoraconnectedproject)withinthecountryforaperiodorperiodsaggregatingtomorethansix
monthswithinany12months'period.

4.NotwithstandingtheprecedingprovisionsofthisArticle,theterm"permanentestablishment"shallbedeemednottoinclude:
(a)

theuseoffacilitiessolelyforthepurposeofstorageordisplayofgoodsormerchandisebelongingtothe
enterprise

(b)

themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
storageordisplay

(c)

themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
processingbyanotherenterprise

(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), provided that the overall activity of the fixed place of business resulting from this
combinationisofapreparatoryorauxiliarycharacter.

However,theprovisionsofsubparagraphsa)toe)shallnotbeapplicablewheretheenterprisemaintainsanyotherfixedplace
ofbusinessintheotherContractingStateforanypurposesotherthanthepurposesspecifiedinthesaidsubparagraphs.
5.Notwithstandingtheprovisionsofparagraphs1and2,whereapersonotherthananagentofanindependentstatustowhom
paragraph7appliesisactinginaContractingStateonbehalfofanenterpriseoftheotherContractingState,thatenterprise
shallbedeemedtohaveapermanentestablishmentinthefirstmentionedContractingStateinrespectofanyactivitieswhich
thatpersonundertakesfortheenterprise,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

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merchandisefromwhichheregularlydeliversgoodsormerchandiseonbehalfoftheenterpriseor
(c)

habituallysecuresordersinthefirstmentionedState,whollyoralmostwhollyfortheenterpriseitselfor
fortheenterpriseandotherenterprisescontrolling,controlledby,orsubjecttothesamecommoncontrol
as,thatenterprise.

6.NotwithstandingtheprecedingprovisionsofthisArticle,aninsuranceenterpriseofaContractingStateshall,exceptinregard
to reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the
territory of that other State or insures risks situated therein through a person other than an agent of an independent status to
whomparagraph7applies.
7.An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on
business in that State through a broker, general commission agent or any other agentofanindependentstatus,providedthat
such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted
whollyoralmostwhollyonbehalfofthatenterpriseoronbehalfofthatenterpriseandotherenterprisescontrolling,controlled
by,orsubjecttothesamecommoncontrolas,thatenterprise,hewillnotbeconsideredanagentofanindependentstatuswithin
themeaningofthisparagraphunlesstheenterprisecandemonstratethatthetransactions between the said enterprise and the
agentareunderarm'slengthconditions.
8.ThefactthatacompanywhichisaresidentofaContractingStatecontrolsoriscontrolledbyacompanywhichisaresident
oftheotherContractingState,orwhichcarriesonbusinessinthatotherState(whetherthroughapermanentestablishmentor
otherwise),shallnotofitselfconstituteeithercompanyapermanentestablishmentoftheother.

ARTICLE6
INCOMEFROMIMMOVABLEPROPERTY
1.IncomederivedbyaresidentofaContractingStatefromimmovableproperty(includingincomefromagricultureorforestry)
situatedintheotherContractingStatemaybetaxedinthatotherState.
2.The term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the
property in question is situated. The term shall in any case include property accessory to immovable property (including
livestock and equipment used in agriculture and forestry), rights to which the provisions of general law respecting landed
propertyapply,usufructofimmovablepropertyandrightstovariableorfixedpaymentsasconsiderationfortheworkingof,or
therighttowork,mineraldeposits,sourcesandothernaturalresourcesshipsandaircraftshallnotberegardedasimmovable
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.Theprovisionsofparagraphs1and3shallalsoapplytotheincomefromimmovablepropertyofanenterpriseandtoincome
fromimmovablepropertyusedfortheperformanceofindependentpersonalservices.

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
the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of
whichitisapermanentestablishment.
3.Indeterminingtheprofitsofapermanentestablishment,thereshallbe,allowedasdeductionsexpenseswhichareincurred
forthepurposesofthepermanentestablishment,includingexecutiveandgeneraladministrativeexpensessoincurred,whether
intheStateinwhichthepermanentestablishmentissituatedorelsewhere,inaccordancewiththeprovisionsofandsubjectto
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thelimitationsofthetaxlawsofthatState.However,nosuchdeductionshallbeallowedinrespectofamounts,ifany,paid
(otherwisethantowardsreimbursementofactualexpenses)bythepermanentestablishmenttotheheadofficeoftheenterprise
oranyofitsotheroffices,bywayofroyalties,feesorothersimilarpaymentsinreturnfortheuseofpatents,knowhoworother
rights,orbywayofcommissionorotherchargesforspecificservicesperformedorformanagement,or,exceptinthecaseof
bankingenterprises,bywayofinterestonmoneyslenttothepermanentestablishment.Likewise,noaccountshallbetaken,in
thedeterminationoftheprofitsofapermanentestablishment,foramountscharged(otherwisethantowardsreimbursementof
actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of
royalties,feesorothersimilarpaymentsinreturnfortheuseofpatents,knowhoworotherrights,orbywayofcommissionor
other charges for specific services performed or for management, or, except in the case of a banking enterprise, by way of
interestonmoneyslenttotheheadofficeoftheenterpriseoranyofitsotheroffices.
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,orrentalof
containers(includingtrailersandotherequipmentforthetransportofcontainers)usedforthetransportofgoodsormerchandise
ininternationaltrafficshallbetaxableonlyinthatContractingState,exceptinsofarasthosecontainersortrailersandrelated
equipmentsareusedfortransportsolelybetweenplaceswithintheotherContractingState.
3. For the purposes of this Article interest, on investments directly connected with the operation of ships or aircraft in
internationaltrafficshallberegardedasprofitsderivedfromtheoperationofsuchshipsoraircraftiftheyareintegraltothe
carryingonofsuchbusiness,andtheprovisionsofArticle11shallnotapplyinrelationtosuchinterest.
4. The provisions of paragraph 1 and 2 shall also apply to profits from the participation in a pool, a joint business or an
internationaloperatingagency.
5.Theprovisionsofparagraphs1and2shallapplytoprofitsderivedbythejointNorwegian,DanishandSwedishairtransport
consortiumScandinavianAirlinesSystem(SAS),butonlyinsofarasprofitsderivedbySASNorgeAS,theNorwegianpartner
oftheScandinavianAirlinesSystem(SAS),areinproportiontoitsshareinthatorganization.

ARTICLE9
ASSOCIATEDENTERPRISE
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
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conditions,haveaccruedtooneoftheenterprises,but,byreasonofthoseconditions,havenotsoaccrued,maybeincludedin
theprofitsofthatenterpriseandtaxedaccordingly.
2.WhereaContractingStateincludesintheprofitsofanenterpriseofthatStateandtaxesaccordinglyprofitsonwhichan
enterpriseoftheotherContractingStatehasbeenchargedtotaxinthatotherStateandtheprofitssoincludedareprofitswhich
wouldhaveaccruedtotheenterpriseofthefirstmentionedStateiftheconditionsmadebetweenthetwoenterpriseshadbeen
thosewhichwouldhavebeenmadebetweenindependententerprises,thenthatotherStatemaymakeanappropriateadjustment
totheamountofthetaxchargedthereinonthoseprofits.Indeterminingsuchadjustment,dueregardshallbehadtotheother
provisionsofthisAgreementandthecompetentauthoritiesoftheContractingStatesshallifnecessaryconsulteachother.

ARTICLE10
DIVIDENDS
1.DividendspaidbyacompanywhichisaresidentofaContractingStatetoaresidentoftheotherContractingStatemaybe
taxedinthatotherState.
2.However,suchdividendsmayalsobetaxedintheContractingStateofwhichthecompanypayingthedividendsisaresident
andaccordingtothelawsofthatState,butifthebeneficialownerofthedividendsisaresidentoftheotherContractingState,
thetaxsochargedshallnotexceed10percentofthegrossamountofthedividends.
Thisparagraphshallnotaffectthetaxationofthecompanyinrespectoftheprofitsoutofwhichthedividendsarepaid.
3.Theterm"dividends"asusedinthisArticlemeansincomefromsharesorotherrights,notbeingdebtclaims,participatingin
profits,aswellasincomefromothercorporaterightswhichissubjectedtothesametaxationtreatmentasincomefromshares
bythelawsoftheStateofwhichthecompanymakingthedistributionisaresidentandincometreatedasdividendsunderthe
taxationlawsoftheContractingStateofwhichthecompanymakingthedistributionisaresident.
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.Insuchcase,theprovisionsofArticle7orArticle14,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. Notwithstanding the provisions of paragraph 2, any such interest referred to in paragraph 1 shall be taxable only in the
ContractingStateofwhichtherecipientisaresident,ifsuchresidentisthebeneficialowneroftheinterestandifsuchinterest
ispaidtotheGovernmentofaContractingState,orapoliticalsubdivisionoralocalauthoritythereof:
(a)

InthecaseofNorway,thetermGovernmentencompasses:

(i)

theCentralBankofNorway

(ii)

theGovernmentPensionFund

(iii)

theNorwegianGuaranteeInstitute
forExportCredits

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(iv)

(b)

Norfund,
to the extent they are wholly owned and controlled by the
GovernmentofNorway.
InthecaseofIndia,thetermGovernmentencompasses:

(i)

theReserveBankofIndia

(ii)

the ExportImport Bank of India and the National Housing Bank to the
extenttheyarewhollyownedandcontrolledbytheGovernmentofIndiaor
theReserveBankofIndia.

(c)

to any other institution as may be agreed upon from time to time

between the competent authorities of the Contracting States through
exchangeofletters.

4.Theterm"interest"asusedinthisArticlemeansincomefromdebtclaimsofeverykind,whetherornotsecuredbymortgage,
and in particular, income from government securities and income from bonds or debentures, including premiums and prizes
attachingtosuchsecurities,bondsordebentures,aswellasincomeassimilatedtoincomefrommoneylentbythetaxationlaw
oftheContractingStateinwhichtheincomearises.Penaltychargesforlatepaymentshallnotberegardedasinterestforthe
purposeofthisArticle.
5.Theprovisionsofparagraphs1and2shallnotapplyifthebeneficialowneroftheinterest,beingaresidentofaContracting
State,carriesonbusinessintheotherContractingStateinwhichtheinterestarises,throughapermanentestablishmentsituated
therein,orperformsinthatotherStateindependentpersonalservicesfromafixedbasesituatedtherein,andthedebtclaimin
respectofwhichtheinterestispaidiseffectivelyconnectedwithsuchpermanentestablishmentorfixedbase.Insuchcase,the
provisionsofArticle7orArticle14,asthecasemaybe,shallapply.
6.InterestshallbedeemedtoariseinaContractingStatewhenthepayerisaresidentofthatState.Where,however,theperson
payingtheinterest,whetherheisaresidentofaContractingStateornot,hasinaContractingStateapermanentestablishment
orafixedbaseinconnectionwithwhichtheindebtednessonwhichtheinterestispaidwasincurred,andsuchinterestisborne
bysuchpermanentestablishmentorfixedbase,thensuchinterestshallbedeemedtoariseintheStateinwhichthepermanent
establishmentorfixedbaseissituated.
7.Where,byreasonofaspecial relationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsome
otherperson,theamountoftheinterest,havingregardtothedebtclaimforwhichitispaid,exceedstheamountwhichwould
havebeenagreeduponbythepayerandthebeneficialownerintheabsenceofsuchrelationship,theprovisionsofthisArticle
shallapplyonlytothelastmentionedamount.Insuchcase,theexcesspartofthepaymentsshallremaintaxableaccordingto
thelawsofeachContractingState,dueregardbeinghadtotheotherprovisionsofthisAgreement.

ARTICLE12
ROYALTIESANDFEESFORTECHNICALSERVICES
1.RoyaltiesorfeesfortechnicalservicesarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemay
betaxedinthatotherState.
2. However, such royaltiesorfees for technical services may also be taxed in the Contracting State in which they arise, and
accordingtothelawsofthatState,butifthebeneficialowneroftheroyaltiesorfeesfortechnicalservicesisaresidentofthe
otherContractingState,thetaxsochargedshallnotexceed10percentofthegrossamountoftheroyaltiesorfeesfortechnical
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, otherthan those mentioned in
Articles 14 and 15 of this Agreement, as consideration for managerial or technical or consultancy services, including the
provisionofservicesoftechnicalorotherpersonnel.
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4.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 right or property in respect of which the royalties or fees for
technical services are paid is effectively connected with such perrmanent establishment or fixed base. In such case the
provisionsofArticle7orArticle14,asthecasemaybe,shallapply.
5.RoyaltiesandfeesfortechnicalservicesshallbedeemedtoariseinaContractingStatewhenthepayeristhatStateitself,a
politicalsubdivision,alocalauthority,oraresidentofthatState.Where,however,thepersonpayingtheroyaltiesorfeesfor
technicalserviceswhetherheisaresidentofaContractingStateornot,hasinaContractingStaleapermanentestablishmentor
a fixed base in connection with which the liability to pay the royalties or fees for technical services was incurred, and such
royaltiesorfeesfortechnicalservicesarebornebysuchpermanentestablishmentorfixedbase,thensuchroyaltiesorfeesfor
technical services shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is
situated.
6.Where,byreasonofaspecial relationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsome
otherperson,theamountoftheroyaltiesorfeesfortechnicalservices,havingregardtotheuse,rightorinformationforwhich
theyarepaid,exceedstheamountwhichwouldhavebeenagreeduponbythepayerandthebeneficialownerintheabsenceof
suchrelationship,theprovisionsofthisArticleshallapplyonlytothelastmentionedamount.Insuchcase,theexcesspart of
thepaymentsshallremaintaxableaccordingtothelawsofeachContractingState,dueregardbeinghadtotheotherprovisions
ofthisAgreement.

ARTICLE13
CAPITALGAINS
1. Gains derived by a resident ofaContractingStatefrom the alienationof immovablepropertyreferred to inArticle 6 and
situatedintheotherContractingStatemaybetaxedinthatotherState.
2.Gainsfromthealienationofmovablepropertyformingpartofthebusinesspropertyofapermanentestablishmentwhichan
enterpriseofaContractingStatehasintheotherContractingStateorofmovablepropertypertainingtoafixedbaseavailableto
a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services,
includingsuchgainsfromthealienationofsuchapermanentestablishment(aloneorwiththewholeenterprise)orofsuchfixed
base,maybetaxedinthatotherState.
3.Gainsfromthealienationofshipsoraircraftoperatedininternationaltraffic,ormovablepropertypertainingtotheoperation
ofsuchshipsoraircraftshallbetaxableonlyintheContractingStateofwhichthealienatorisaresident.
4.GainsfromthealienationofsharesinacompanywhichisaresidentofaContractingStatemaybetaxedinthatState.
5.Gainsfromthealienationofanyproperty,otherthanthatreferredtointheprecedingparagraphs,shallbetaxableonlyinthe
ContractingStateofwhichthealienatorisaresident.

ARTICLE14
INDEPENDENTPERSONALSERVICES
1.IncomederivedbyanindividualwhoisaresidentofaContractingStatefromtheperformanceofprofessionalservicesor
otherindependentactivitiesofasimilarcharactershallbetaxableonlyinthatStateexceptinthefollowingcircumstanceswhen
suchincomemayalsobetaxedintheotherContractingState:
(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.Theterm"professionalservices"includesespeciallyindependentscientific,literary,artistic,educationalorteachingactivities
aswellastheindependentactivitiesofphysicians,lawyers,engineers,architects,surgeons,dentistsandaccountants.
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ARTICLE15
DEPENDENTPERSONALSERVICES
1.SubjecttotheprovisionsofArticles16,18and19,salaries,wagesandothersimilarremunerationderivedbyaresidentofa
ContractingStateinrespectofanemploymentshallbetaxableonlyinthatStateunlesstheemploymentisexercisedintheother
Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other
State.
2.Notwithstandingtheprovisionsof paragraph 1, remuneration derived by a resident of a Contracting State in respect of an
employmentexercisedintheotherContractingStateshallbetaxableonlyinthefirstmentionedStateif:
(a)

therecipientispresentintheotherStateforaperiodorperiodsnotexceedingintheaggregate183daysin
anytwelvemonthperiodcommencingorendinginthefiscalyearconcerned,and

(b)

the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State and
whoseactivitydoesnotconsistofhiringoutoflabour,and

(c)

theremunerationisnotbornebyapermanentestablishmentorafixedbasewhichtheemployerhasinthe
otherState.

3.NotwithstandingtheprecedingprovisionsofthisArticle,remunerationderivedinrespectofanemploymentexercisedaboard
ashiporaircraftoperatedininternationaltrafficbyanenterpriseofaContractingStatemaybetaxedinthatState.Wherea
resident of a Contracting States derives remuneration in respect of an employment exercised aboard an aircraft operated in
internationaltrafficby the ScandinavianAirlines System (SAS) consortium, such remuneration shall be taxable only in that
ContractingState.

ARTICLE16
DIRECTORS'FEES
Directors'feesandothersimilarpaymentsderivedbyaresidentofaContractingStateinhiscapacityasamemberoftheboard
ofdirectorsorofasimilarorganofacompanywhichisaresidentoftheotherContractingStatemaybetaxedinthatother
State.

ARTICLE17
ARTISTESANDSPORTSPERSONS
1.NotwithstandingtheprovisionsofArticles14and15,incomederivedbyaresidentofaContracting Stateasanentertainer,
suchasatheatre,motionpicture,radioortelevisionartiste,oramusician,orasasportsperson,frompersonalactivitiesassuch
exercisedintheotherContractingState,maybetaxedthatotherState.
2.Whereincomeinrespectofpersonalactivitiesexercisedbyanentertainerorasportspersoninhiscapacityassuchaccrues
nottotheentertainerorsportspersonhimselfbuttoanotherperson,thatincomemay,notwithstandingtheprovisionsofArticles
7,14and15,betaxedintheContractingStateinwhichtheactivitiesoftheentertainerorsportspersonareexercised.
3. The provisions of paragraphs 1 and 2, shall not apply to income from activities performed in a Contracting State by
entertainersorsportspersonsiftheactivitiesaresubstantiallysupportedbypublicfundsofoneorbothoftheContractingStates
orofpoliticalsubdivisionsorlocalauthoritiesthereof.Insuchacase,theincomeshallbetaxableonlyintheContractingState
ofwhichtheentertainerorsportspersonisaresident.

ARTICLE18
NONGOVERNMENTPENSIONS,ANNUITIESANDALIMONY
1.Anypension,otherthanapensionreferredtoinArticle19,oranyannuityderivedbyaresidentofaContractingStatefrom
sourceswithintheotherContractingStateshallbetaxableonlyinthefirstmentionedContractingState.
2.Theterm"pension"meansaperiodicpaymentmadeinconsiderationofpastservicesorbywayofcompensationforinjuries
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receivedinthecourseofperformanceofservices.
3. The term "annuity" means a stated sum payable to an individual periodically at stated times during his life or during a
specifiedorascertainableperiodoftimeunderanobligationtomakethepaymentsinreturnforadequateandfullconsideration
inmoneyormoney'sworth.
4.Alimonyreceivedbyaresident ofaContractingStateandpaidbyaresidentoftheotherContractingStateshallbeexempt
fromtaxinthefirstmentionedStatetotheextentsuchpaymentsarenotdeductiblefortaxpurposesintheotherContracting
State.

ARTICLE19
GOVERNMENTSERVICE
1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political sub
division or a local authority thereof to an individual in respect of services rendered tothat State or subdivision or authority
shallbetaxableonlyinthatState.
(b)However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the
servicesarerenderedinthatStateandtheindividualisaresidentofthatStatewho:
(i)

isanationalofthatStateor

(ii)

didnotbecomearesidentofthatStatesolelyforthepurposeofrenderingtheservices.

2.(a)Anypensionpaidby,oroutoffundscreatedby,aContractingStateorapoliticalsubdivisionoralocalauthoritythereof
toanindividualinrespectofservicesrenderedtothatStateorsubdivisionorauthorityshallbetaxableonlyinthatState.
(b)However,suchpensionshallbetaxableonlyintheotherContractingStateif:
(i)

theindividualisaresidentof,andanationalof,thatotherStateor

(ii)

suchpensionisexemptfromtaxinthefirstmentionedState.

3.TheprovisionsofArticles15,16,17and18shallapplytosalaries,wagesandothersimilarremunerationandtopensionsin
respectofservicesrenderedinconnectionwithabusinesscarriedonbyaContractingStateorapoliticalsubdivisionoralocal
authoritythereof.

ARTICLE20
STUDENTS
1.Astudentwhoisorwasa residentofoneoftheContractingStatesimmediatelybeforevisitingtheotherContractingState
andwhoispresentinthatotherContractingStatesolelyforthepurposeofhiseducationortraining,shallbesidesgrants,loans
andscholarshipsbeexemptfromtaxinthatotherStateonpaymentsmadetohimbypersonsresidingoutsidethatotherState
forthepurposesofhismaintenance,educationortraining,andshallinadditionbeentitledduringsucheducationortrainingto
thesameexemptions,reliefs,orreductionsinrespectoftaxesavailabletoresidentsoftheStateheisvisiting.
2. The benefits of this Article shall extend only for such period of time as may be reasonable or customarily required to
completetheeducationortrainingundertaken,butinnoeventshallanyindividualhavethebenefitsofthisArticle,formore
thansixconsecutiveyearsfromthedateofhisfirstarrivalinthatotherState.

ARTICLE21
OFFSHOREACTIVITIES
1.TheprovisionsofthisArticleshallapplynotwithstandinganyotherprovisionofthisAgreement.
2. A person who is a resident of a Contracting State and carries on activities offshore in the other Contracting State in
connection with the exploration or exploitation of the seabed or subsoil or their natural resources situated in that other State
shall,subjecttoparagraphs3and4ofthisArticle, bedeemedinrelationtothoseactivitiestobecarryingonbusinessinthat
otherStatethroughapermanentestablishmentorfixedbasesituatedtherein.
3.Theprovisionsofparagraph2shallnotapplywheretheactivitiesarecarriedonforaperiodnotexceeding30daysinthe
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aggregateinanytwelvemonthsperiodcommencingorendinginthefiscalyearconcerned.However,forthepurposesofthis
paragraph:
(a)

whereanenterpriseofaContractingStatecarryingonoffshoreactivitiesintheotherContractingStateis
associated with another enterprise carrying on substantially similar offshore activities there, the former
enterpriseshallbedeemedtobecarryingonallsuchactivitiesofthelatterenterprise,withtheexception
ofactivitieswhicharecarriedonatthesametimeasitsownactivitiesand

(b)

twoenterprisesshallbedeemedtobeassociatedifoneiscontrolleddirectlyorindirectlybytheother,or
botharecontrolleddirectlyorindirectlybyathirdpersonorpersons

4.ProfitsderivedbyanenterpriseofaContractingStatefromthetransportationofsuppliesorpersonneltoorfromalocation,
orbetweenlocations,whereactivitiesinconnectionwiththeexplorationorexploitationoftheseabedorsubsoilortheirnatural
resourcesarebeingcarriedonintheotherContractingState,orfromtheoperationoftugboatsandothervesselsauxiliaryto
suchactivities,shallbetaxableonlyintheContractingStateofwhichtheenterpriseisaresident.
Notwithstandingtheprovisionsofthisparagraph,profitsderivedfromsuchoperationmayalsobetaxedintheContractingState
inwhichtheoperationiscarriedonbutthetaxsochargedshallnotexceed50percentofthetaxotherwiseimposedbythe
domesticlawofthatState.Forthepurposesofthisparagraph,theamountofsuchprofitssubjecttotaxinIndiashallnotexceed
7.5percentofthesumsreceivable.
5. (a) Subject to subparagraph (b) of this paragraph, salaries, wages and similar remuneration derived by a resident of a
ContractingStateinrespectofanemploymentconnectedwiththeexplorationorexploitationoftheseabedorsubsoil"ortheir
naturalresourcessituatedintheotherContractingState,totheextentthatthedutiesareperformedoffshoreinthatotherState,
may be taxed in that other State. However, such remuneration shall be taxable only in the firstmentioned State if the
employmentiscarriedonoffshoreforanemployerwhoisnotaresidentoftheotherStateandprovidedthattheemploymentis
carriedonforaperiodorperiodsnotexceedingintheaggregate30daysinanytwelvemonthperiodcommencingorendingin
thefiscalyearconcerned.
(b)Salaries,wagesandsimilarremunerationderivedbyaresidentofaContractingStateinrespectofanemploymentexercised
aboard a ship or aircraft engaged in the transportation of supplies or personnel to or from a location, or between locations,
where activities connected with the exploration or exploitation of the seabed or subsoil or their natural resources are being
carriedonintheotherContractingState,orinrespectofanemploymentexercisedaboardtugboatsorothervesselsoperated
auxiliary to such activities, may be taxed, in the Contracting State of which the enterprise carrying on such activities is a
resident.

ARTICLE22
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.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.Notwithstandingtheprovisionsofparagraphs1and2,itemsofincomeofaresidentofaContractingStatenotdealtwithin
theforegoingarticlesofthisAgreementandarisingintheotherContractingStatemayalsobetaxedinthatotherState.

ARTICLE23
CAPITAL
1.CapitalrepresentedbyimmovablepropertyreferredtoinArticle6,ownedbyaresidentofaContractingStateandsituatedin
theotherContractingState,maybetaxedinthatotherState.
2. Capital represented by movable property forming part of the business property of a permanent establishment which an
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enterpriseofaContractingStatehasintheotherContractingStateorbymovablepropertypertainingtoafixedbaseavailable
toaresidentofaContractingStateintheotherContractingStateforthepurposeofperformingindependentpersonalservices,
maybetaxedinthatotherState.
3. Capital represented by ships and aircraft operated in international traffic by an enterprise of a Contracting State, and by
movablepropertypertainingtotheoperationofsuchshipsandaircraft,shallbetaxableonlyinthatState.
4.AllotherelementsofcapitalofaresidentofaContractingStateshallbetaxableonlyinthatState.

ARTICLE24
METHODSFORELIMINATIONOFDOUBLETAXATION
1. The laws in force in either of the Contracting States shall continue to govern the taxation of income and capital in the
respectiveContractingStatesexceptwhereexpressprovisionstothecontraryaremadeinthisAgreement.
2.Doubletaxationshallbeeliminatedasfollows:
(A)

InIndia:

(a) WherearesidentofIndiaderivesincomeorownscapitalwhich,inaccordancewiththeprovisionsofthisAgreement,
maybetaxedinNorway,Indiashallallow:
(i) asadeductionfromthetaxontheincomeofthatresident,anamountequaltotheincometaxpaidinNorwayonthat
income
(ii) asadeductionfromthetaxonthecapitalofthatresident,anamountequaltothecapitaltaxpaidinNorwayonthat
capital
Such deduction shall not, however, exceed that portion of the income tax or capital tax as computed before the
deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in
Norway.
(b) WhereinaccordancewithanyprovisionoftheAgreementincomederivedorcapitalowned byaresidentofIndiais
exemptfromtaxinIndia,Indiamaynevertheless,incalculatingtheamountoftaxontheremainingincomeorcapital
ofsuchresident,takeintoaccounttheexemptedincomeorcapital.
(B)

InNorway:

(a) WherearesidentofNorwayderivesincomeorownselementsofcapitalwhich,inaccordancewiththeprovisionsof
thisAgreement,maybetaxedinIndia,Norwayshallallow:
(i) asadeductionfromthetaxontheincomeofthatresident,anamountequaltotheincometaxpaidinIndiaonthat
income
(ii) asadeductionfromthetaxonthecapitalofthatresident,anamountequaltothecapitaltaxpaidinIndiaonelements
ofcapital
Suchdeductionineithercaseshallnot,however,exceedthatpartoftheincometaxorcapitaltaxascomputedbefore
thedeductionisgiven,whichisattributable,asthecasemaybe,totheincomeorthesameelementsofcapitalwhich
maybetaxedinIndia.
(b) WhereinaccordancewithanyprovisionoftheAgreement,incomederivedorcapitalownedbyaresidentofNorway
is exempt from tax in Norway, Norway may nevertheless include such income or capital in the tax base, but shall
allowasadeductionfromtheNorwegiantaxonincomeorcapitalthatpartoftheincometaxorcapitaltax,asthe
casemaybe,whichisattributabletotheincomederivedfromIndiaorthecapitalownedinIndia.

ARTICLE25
NONDISCRIMINATION
1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement
connectedtherewith,whichisotherormoreburdensomethanthetaxationandconnected requirements to which nationals of
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thatotherStateinthesamecircumstances,inparticularwithrespecttoresidence,areormaybesubjected.Thisprovisionshall,
notwithstandingtheprovisionsofArticle1,alsoapplytopersonswhoarenotresidentsofoneorbothoftheContractingStates.
2.ThetaxationonapermanentestablishmentwhichanenterpriseofaContractingStatehasintheotherContractingStateshall
notbelessfavourablyleviedinthatotherStatethanthetaxationleviedonenterprisesofthatotherStatecarryingonthesame
activities.Thisprovisionshallnotbeconstrued asobliging a Contracting State to grant to residents of the other Contracting
Stateanypersonalallowances,reliefsandreductionsfortaxationpurposesonaccountofcivilstatusorfamilyresponsibilities
whichitgrantstoitsownresidents.ThisprovisionshallnotbeconstruedaspreventingaContractingStatefromchargingthe
profitsofapermanentestablishmentwhichacompanyoftheotherContractingStatehasinthefirstmentionedStateatarateof
tax which is not more than 10 percentage points higher than that imposed on the profits of a similar company of the first
mentionedContractingState,norasbeinginconflictwiththeprovisionsofparagraph3ofArticle7ofthisAgreement.
3. Except where the provisions of paragraph 1 ofArticle 9, paragraph 7 ofArticle 11, or paragraph 6 of Article 12, apply,
interest,royaltiesandotherdisbursementspaidbyanenterpriseofaContractingState to a resident of the other Contracting
Stateshall,forthepurposeofdeterminingthetaxableprofitsofsuchenterprise,bedeductibleunderthesameconditionsasif
theyhadbeenpaidtoaresidentofthefirstmentionedState.Similarly,anydebtsofanenterpriseofaContractingStatetoa
residentoftheotherContractingStateshall,forthepurposeofdeterminingthetaxablecapitalofsuchenterprise,bedeductible
underthesameconditionsasiftheyhadbeencontractedtoaresidentofthefirstmentionedState.
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
requirementconnectedtherewithwhichisotherormore burdensome than the taxation and connected requirements to which
othersimilarenterprisesofthefirstmentionedStateareormaybesubjected.
5.TheprovisionsofthisArticleshall,notwithstandingtheprovisionsofArticle2,applytotaxesofeverykindanddescription.

ARTICLE26
MUTUALAGREEMENTPROCEDURE
1.WhereapersonconsidersthattheactionsofoneorbothoftheContractingStatesresultorwillresultforhimintaxationnot
inaccordancewiththeprovisionsofthisAgreement,hemay,irrespectiveoftheremediesprovidedbythedomesticlawofthose
States,presenthiscasetothecompetentauthorityoftheContractingStateofwhichheisaresidentor,ifhiscasecomesUnder
paragraph1ofArticle25,tothatoftheContractingStateofwhichheisanational.Thecasemustbepresentedwithin three
yearsfromthefirstnotificationoftheactionresultingintaxationnotinaccordancewiththeprovisionsoftheAgreement.
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.ThecompetentauthoritiesoftheContractingStatesshallendeavourtoresolvebymutualagreementanydifficultiesordoubts
arisingastotheinterpretationorapplicationoftheAgreement.Theymay alsoconsulttogetherfortheeliminationofdouble
taxationincasesnotprovidedforintheAgreement.
4.ThecompetentauthoritiesoftheContractingStatesmaycommunicatewitheachotherdirectly,forthepurposeofreachingan
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.

ARTICLE27
EXCHANGEOFINFORMATION
1.ThecompetentauthoritiesoftheContractingStatesshallexchangesuchinformation(includingdocumentsorcertifiedcopies
of the documents) as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or
enforcementofthedomesticlawsconcerningtaxesofeverykindanddescriptionimposedonbehalfoftheContractingStates,
oroftheirpoliticalsubdivisionsorlocalauthorities,insofarasthetaxationthereunderisnotcontrarytotheAgreement. The
exchangeofinformationisnotrestrictedbyArticles1and2.
2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as
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information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including
courtsandadministrativebodies)concernedwiththeassessmentorcollectionof,theenforcementorprosecutioninrespectof,
thedeterminationofappealsinrelationtothetaxesreferredtoinparagraph1ortheoversightoftheabove.Suchpersonsor
authoritiesshallusetheinformationonlyforsuchpurposes.Theymaydisclosetheinformationinpubliccourtproceedingsor
in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other
purposeswhensuchinformationmaybeusedforsuchotherpurposesunderthelawsofbothStatesandthecompetentauthority
ofthesupplyingStateauthorizessuchuse.
3.Innocaseshalltheprovisionsofparagraphs1and2beconstruedsoastoimposeonaContractingStatetheobligation:
(a)

tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorofthe
otherContractingState

(b)

tosupplyinformation(includingdocumentsorcertifiedcopiesofthedocuments)whichisnotobtainable
underthelawsorinthenormalcourseoftheadministrationofthatoroftheotherContractingState

(c)

to supply information which would disclose any trade, business, industrial, commercial or professional
secretortradeprocess,orinformation,thedisclosureofwhichwouldbecontrarytopublicpolicy(ordre
public).

4.IfinformationisrequestedbyaContractingStateinaccordancewiththisArticle,theother ContractingStateshalluseits
informationgatheringmeasurestoobtaintherequestedinformationeventhoughthatotherStatemaynotneedsuchinformation
foritsowntaxpurposes.Theobligationcontainedintheprecedingsentenceissubjecttothelimitationsofparagraph3,butin
nocaseshallsuchlimitationsbeconstruedtopermitaContractingStatetodeclinetosupplyinformationsolelybecauseithas
nodomesticinterestinsuchinformation.
5.Innocaseshalltheprovisionsofparagraph3beconstruedtopermitaContractingStatetodeclinetosupplyinformation
solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a
fiduciarycapacityorbecauseitrelatestoownershipinterestsinaperson.

ARTICLE28
ASSISTANCEINTHECOLLECTIONOFTAXES
1.TheContractingStatesshalllendassistancetoeachotherinthecollectionofrevenueclaims.Thisassistanceisnotrestricted
by Articles 1 and 2. The competent authorities of the Contracting States may by mutual agreement settle the mode of
applicationofthisArticle.
2.Theterm"revenueclaim" asusedinthisArticlemeansanamountowedinrespectoftaxesofevery kindanddescription
imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation
thereunder is not contrary to thisAgreement or any other instrument to which the Contracting States are parties, as well as
interest,administrativepenalties,fineandcostsofcollectionorconservancyrelatedtosuchamount.
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
conservancywithaviewtoensureitscollection,thatrevenueclaimshall,attherequestofthecompetentauthorityofthatState,
be accepted for purposes of taking measures of conservancy by the competent authority of the other Contracting State.That
otherStateshalltakemeasuresofconservancyinrespectofthatrevenueclaiminaccordancewiththeprovisionsofitslawsas
iftherevenueclaimwerearevenueclaimofthatotherStateevenif,atthetimewhensuchmeasuresareapplied,therevenue
claimisnotenforceableinthefirstmentionedStateorisowedbyapersonwhohasarighttopreventitscollection.
5. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State for purposes of
paragraph 3 or 4 shall not, in that State, be subject to the time limits or accorded any priority applicable to a revenue claim
underthelawsofthatStatebyreasonofitsnatureassuch.Inaddition,arevenueclaimacceptedbyaContractingStateforthe
purposesofparagraph3or4shallnot,inthatState,haveanypriorityapplicabletothatrevenueclaimunderthelawsofthe
otherContractingState.
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6. Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall only be
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,

thecompetentauthorityofthefirstmentionedStateshallpromptlynotifythecompetentauthorityoftheotherStateofthatfact
and,attheoptionoftheotherState,thefirstmentionedStateshalleithersuspendorwithdrawitsrequest.
8.InnocaseshalltheprovisionsofthisArticlebeconstruedsoastoimposeonaContractingStatetheobligation:
(a)

tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorofthe
otherContractingState

(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.

ARTICLE29
LIMITATIONOFBENEFITS
Benefits of this Agreement shall not be available to a resident of a Contracting State, or with respect to any transaction
undertakenbysucharesident,ifthemainpurposeoroneofthemainpurposesofthecreationorexistenceofsucharesidentor
ofthetransactionundertakenbyhim,wastoobtainthebenefitsunderthisAgreementthatwouldnototherwisebeavailable.

ARTICLE30
MEMBERSOFDIPLOMATICMISSIONSANDCONSULARPOSTS
1.NothinginthisAgreement shallaffectthefiscalprivilegesofmembersofdiplomaticmissionsorconsularpostsunderthe
generalrulesofinternationallaworundertheprovisionsofspecialagreements.
2.Insofaras,duetofiscalprivilegesgrantedtomembersofdiplomaticmissionsandconsularpostsunderthegeneralrulesof
internationallaworundertheprovisionsofspecialinternationalagreements,incomeisnotsubjecttotaxinthereceivingState,
therighttotaxshallbereservedtothesendingState.

ARTICLE31
ENTRYINTOFORCE
1.TheContractingStatesshallnotifyeachotherinwriting,throughdiplomaticchannels,ofthecompletionoftheprocedures
requiredbytherespectivelawsfortheentryintoforceofthisAgreement.
2.ThisAgreementshallenterintoforceonthedateofthelaterofthenotificationsreferredtoinparagraph1ofthisArticle.
3.TheprovisionsofthisAgreementshallhaveeffect:
(a)

inIndia:inrespectofincomederivedorcapitalownedinanyfiscalyearbeginningonorafterthefirst
dayofAprilnextfollowingthecalendaryearinwhichtheAgreemententersintoforceand

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(b)

in Norway: in respect of taxes on income or capital relating to the calendar year (including accounting
periods beginning in any such year) next following that in which theAgreement enters into force and
subsequentyears.

4. The Convention between the Kingdom of Norway and the Republic of India for the avoidance of double taxation and
preventionoffiscalevasionwithrespecttotaxesonincomeandoncapital,signedon31stDecember,1986,shallterminateand
ceasetohaveeffectinrespectoftaxesonincomeandoncapitaltowhichthepresentAgreementappliesinaccordancewiththe
provisionsofparagraph1ofthisArticle.

ARTICLE32
TERMINATION
This Agreement shall remain in force indefinitely until terminated by a Contracting State. Either Contracting State may
terminatetheAgreement,throughdiplomaticchannels,bygivingnoticeofterminationatleastsixmonthsbeforetheendofany
calendaryearbeginningaftertheexpirationoffiveyearsfromthedateofentryintoforceoftheAgreement.Insuchevent,the
Agreementshallceasetohaveeffect:
(a)

inIndia,inrespectofincomederivedorcapitalownedinanyfiscalyearonorafterthefirstdayofApril
nextfollowingthecalendaryearinwhichthenoticeisgiven

(b)

inNorway:inrespectoftaxesonincomeoroncapitalrelatingtothecalendaryear(includingaccounting
periodsbeginninginsuchyear)nextfollowingthatinwhichthenoticeisgiven

INWITNESSWHEREOFtheundersigned,dulyauthorizedthereto,havesignedthisAgreement.
DONEinduplicateatNewDelhionthisSeconddayofFebruary2011,eachintheHindi,NorwegianandEnglishlanguages,all
textsbeingequallyauthentic.Incaseofdivergenceofinterpretation,theEnglishtextshallprevail.

Copyright. Taxmann Publications Pvt. Ltd.

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