Section 5 in Convention between the Government of the Republic of India and the Government of Republic of Finland for the avoidance of double taxation with respect to taxes on income and on capital
5. The provisions of paragraphs 1 and 2 shall not apply if the recipient of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 15, as the case may be, shall apply."
Article VParagraphs 2, 3 and 4 of Article 13 of the Convention shall be deleted and replaced by the following and the existing paragraphs 5, 6 and 7 shall be renumbered as paragraphs 6, 7 and 8, respectively :"2. However, such royalties and fees for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that State, but the tax so charged shall not exceed :(a)in the case of royalties within sub-paragraph (a) of paragraph 3, and fees for technical services within sub-paragraphs (a) and (c) of paragraph 4;(i)during the years 1997 to 2001 :(aa)15 per cent of the gross amount of such royalties or fees for technical services when the payer of the royalties or fees for technical services is the Government of the first-mentioned Contracting State or a political sub-division of that State, and(bb)20 per cent of the gross amount of such royalties or fees for technical services in all other cases; and(ii)during subsequent years 15 per cent of the gross amount of such royalties or fees for technical services; and(b)in the case of royalties within sub-paragraph (b) of paragraph 3 and fees for technical services defined in sub-paragraph (b) of paragraph 4, 10 per cent of the gross amount of such royalties and fees for technical services.
