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SECTION90OFTHEINCOMETAXACT,1961DOUBLETAXATIONAGREEMENTAGREEMENTFOR
AVOIDANCEOFDOUBLETAXATIONANDPREVENTIONOFFISCALEVASIONWITHFOREIGNCOUNTRIES
LATVIA
NOTIFICATIONNO.12/2014[F.NO.503/02/1997FTDI],DATED532014

Whereas,anAgreementwasenteredintobetweentheGovernmentoftheRepublicofIndiaandtheGovernmentoftheRepublic
ofLatviafortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwithrespecttotaxesonincomewhichwas
signedatNewDelhionthe18thdayofSeptember,2013(hereinafterreferredtoasthesaidAgreement)
2.Andwhereas,thedateofentryintoforceofthesaidAgreementisthe28thdayofDecember,2013,beingthedateoflaterof
thenotificationsofthecompletionoftheproceduresrequiredbytherespectivelawsforentryintoforceofthesaidAgreement,
inaccordancewithparagraph2ofArticle30ofthesaidAgreement
3.Andwhereas,subparagraph (a)ofparagraph3ofArticle30ofthesaidAgreementprovidesthatthe provisionsofthesaid
AgreementshallhaveeffectinIndiainrespectofincomederivedinanyfiscalyearbeginningonorafterthefirstdayofApril
nextfollowingthecalendaryearinwhichthesaidAgreemententersintoforce
4. Now, therefore, inexerciseof the powers conferred by section 90 of the Income taxAct, 1961 (43 of 1961), the Central
GovernmentherebynotifiesthatalltheprovisionsofsaidAgreementbetweentheGovernmentoftheRepublicofIndiaandthe
GovernmentoftheRepublicofLatviafortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwithrespectto
taxesonincome,assetoutintheAnnexurehereto,shallbegiveneffecttointheUnionofIndiawitheffectfromthelstdayof
April,2014.
ANNEXURE
AGREEMENTBETWEENTHEGOVERNMENTOFTHEREPUBLICOFINDIAANDTHEGOVERNMENTOFTHE
REPUBLICOFLATVIAFORTHEAVOIDANCEOFDOUBLETAXATIONANDTHEPREVENTIONOFFISCAL
EVASIONWITHRESPECTTOTAXESONINCOME
TheGovernmentoftheRepublicofIndiaandtheGovernmentoftheRepublicofLatvia,
desiring to conclude anAgreement for the avoidance of double taxation andthe prevention of fiscalevasion with respect to
taxesonincomeandwithaviewtopromotingeconomiccooperationbetweenthetwocountries,
haveagreedasfollows:

ARTICLE1
PERSONSCOVERED
ThisAgreementshallapplytopersonswhoareresidentsofoneorbothoftheContractingStates.

ARTICLE2
TAXESCOVERED
1.ThisAgreementshallapply totaxesonincomeimposedonbehalfofaContractingStateorofitspoliticalsubdivisionsor
localauthorities,irrespectiveofthemannerinwhichtheyarelevied.
2.Thereshallberegardedastaxesonincomealltaxesimposedontotalincome,oronelementsofincome,includingtaxeson
gainsfromthealienationofmovableorimmovableproperty.
3.TheexistingtaxestowhichtheAgreementshallapplyareinparticular:
(a)

inIndia,theincometax,includinganysurchargethereon(hereinafterreferredtoas"Indiantax")

(b)

inLatvia:

(i)

theenterpriseincometax(uznemumuienakumanodoklis)

(ii)

thepersonalincometax(iedzivotajuienakumanodoklis)

(hereinafterreferredtoas"Latviantax").
4.TheAgreementshallapply alsotoanyidenticalorsubstantiallysimilartaxesthatareimposedafterthedateofsignatureof
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theAgreementinadditionto,orinplaceof,theexistingtaxes.Thecompetent authoritiesoftheContractingStatesshallnotify
eachotherofanysignificantchangesthathavebeenmadeintheirrespectivetaxationlaws.

ARTICLE3
GENERALDEFINITIONS
1.ForthepurposesofthisAgreement,unlessthecontextotherwiserequires:
(a)

theterm"India"meanstheterritoryofIndiaandincludestheterritorialseaandairspaceaboveit,aswellasany
othermaritimezoneinwhichIndiahassovereignrights,otherrightsandjurisdiction,accordingtotheIndianlaw
andinaccordancewithinternationallaw,includingU.N.ConventionontheLawoftheSea

(b)

theterm"Latvia"meanstheRepublicofLatviaand,whenusedinthegeographicalsense,meanstheterritoryof
theRepublicofLatviaandanyotherareaadjacenttotheterritorialwatersoftheRepublicofLatviawithinwhich
under the laws of Latvia and in accordance with international law, the rights of Latvia may be exercised with
respecttotheseabedanditssubsoilandtheirnaturalresources

(c)

theterms"aContractingState"and"theotherContractingState"meantheRepublicofIndiaortheRepublicof
Latvia,asthecontextrequires

(d)

theterm"person"includesanindividual,acompany,abodyofpersonsandanyotherentitywhichistreatedasa
taxableunitunderthetaxationlawsinforceintherespectiveContractingState

(e)

theterm"company"meansanybodycorporateoranyentitythatistreatedasabodycorporatefortaxpurposes

(f)

theterms"enterpriseofaContractingState"and"enterpriseoftheotherContractingState"meanrespectivelyan
enterprisecarriedonbyaresidentofaContractingStateandanenterprise carried on by a resident of the other
ContractingState

(g)

theterm"internationaltraffic"meansanytransportbyashiporaircraftoperatedbyanenterpriseofaContracting
State,exceptwhentheshiporaircraftisoperatedsolelybetweenplacesintheotherContractingState

(h)

theterm"competentauthority"means:

(i)

inIndia,theFinanceMinister,GovernmentofIndia,orhisauthorisedrepresentative

(ii)

inLatvia,theMinistryofFinanceoritsauthorisedrepresentative

(i)

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

(j)

theterm"tax"meansIndianorLatviantax,asthecontextrequires,butshallnotinclude
anyamountwhichispayableinrespectofanydefaultoromissioninrelationtothetaxes
towhichthisAgreementappliesorwhichrepresentsapenaltyorfineimposedrelatingto
thosetaxes

(k)

Theterm"fiscalyear"means:

(i)

in India, the financial year beginning on the first day of

April

(ii)

inLatvia,thetaxationperiodbeginningonorafterthefirst
dayofJanuary.

2.AsregardstheapplicationoftheAgreementatanytimebyaContractingState,anytermnotdefinedthereinshall,unlessthe
contextotherwiserequires,havethemeaningthatithasatthattimeunderthelawofthatStateforthepurposesofthetaxesto
whichtheAgreementapplies,anymeaningunderthe applicabletaxlawsofthatStateprevailingoverameaninggiventothe
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termunderotherlawsofthatState.

ARTICLE4
RESIDENT
1.ForthepurposesofthisAgreement,theterm"residentofaContractingState"meansanypersonwho,underthelawsofthat
State, is liable to tax therein by reason of his domicile, residence, place ofmanagement, place of incorporation or any other
criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof. This term,
however,doesnotincludeanypersonwhoisliabletotaxinthatStateinrespectonlyofincomefromsourcesinthatStateor
capitalsituatedtherein.
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,
thecompetentauthoritiesoftheContractingStatesshallendeavourtosettlethequestionbymutualagreementhavingregardto
theperson'splaceofeffectivemanagement,theplacewhereitisincorporatedandanyotherrelevantfactors.Intheabsenceof
suchagreement,suchpersonshallnotbeconsideredtobearesidentofeitherContractingStateforthepurposesofenjoying
benefitsundertheAgreement.

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.Theterm"permanentestablishment"shallalsoinclude:
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(a)

a building site or construction, installation or assembly project, or supervisory activity connected

therewith,butonlyifsuchsite,projectoractivitylastsmorethanninemonths

(b)

thefurnishingofservices,includingconsultancyservices,byanenterpriseofaContractingStatethrough
its employees or other personnel engaged by the enterprise for such purpose, but only where such
activities continue (for the same or a connected project) in the other Contracting State for a period or
periodsexceedingintheaggregatesixmonthsinanytwelvemonthperiod

(c)

activitiescarriedonoffshoreinaContractingStateinconnectionwiththeexplorationorexploitationof
theseabedandsubsoilandtheirnaturalresources,butonlyifsuchactivitiesarecarriedonforaperiod
orperiodsexceedingintheaggregate30daysinanytwelvemonthperiod.

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

the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise
belongingtotheenterprise

(b)

themaintenanceofastockofgoodsormerchandisebelongingtotheenterprisesolelyforthepurposeof
storage,displayordelivery

(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),providedthattheoverallactivityofthefixedplaceofbusinessresultingfromthis
combinationisofapreparatoryorauxiliarycharacter.

5.Notwithstandingtheprovisionsofparagraphs1and2,whereapersonotherthananagentofanindependentstatustowhom
paragraph6appliesisactinginaContractingStateonbehalfofanenterpriseoftheotherContractingState,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
merchandisefromwhichheregularlydeliversgoodsormerchandiseonbehalfoftheenterpriseor

(c)

habituallysecuresordersinthefirstmentionedState,whollyoralmostwhollyfortheenterpriseitself.

6.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, where the activities of such an agent are devoted
whollyoralmostwhollyonbehalfofthatenterprise,andwheretheconditionsbetweentheagentandtheenterprisedifferfrom
thosewhichwouldbemadebetweenindependentpersons,suchagentshallnotbeconsideredanagentofanindependentstatus
withinthemeaningofthisparagraph.Insuchcase,provisionsofparagraph5shallapply.
7.ThefactthatacompanywhichisaresidentofaContractingStatecontrolsoriscontrolledbyacompanywhichisaresident
oftheotherContractingState,orwhichcarriesonbusinessinthatotherState(whetherthroughapermanentestablishmentor
otherwise),shallnotofitselfconstituteeithercompanyapermanentestablishmentoftheother.

ARTICLE6
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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 rights in connection with immovable property, property
accessorytoimmovableproperty,livestockandequipment used in agriculture and forestry, rights to which the provisions of
general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as
considerationfortheworkingof,ortherighttowork,mineraldeposits,sourcesandothernaturalresources,rightstoassetsto
be produced by the exploration or exploitation of the sea bed and subsoil and their natural resources, including rights to
interestsinortothebenefitofsuchassetsships,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.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,thereshallbeallowedasdeductionsexpenseswhichareincurredfor
thepurposesofthepermanentestablishment,includingexecutiveandgeneraladministrativeexpensessoincurred,whetherin
theStateinwhichthepermanentestablishmentissituatedorelsewhere,inaccordancewiththeprovisionsofandsubjecttothe
limitations of the tax laws of that State. However, no such deduction shall be allowed in respect of amounts, if any, paid
(otherwisethantowardsreimbursementofactualexpenses)bythepermanentestablishmenttotheheadofficeoftheenterprise
oranyofitsotheroffices,bywayofroyalties,feesorothersimilarpaymentsinreturnfortheuseofpatents,knowhoworother
rights,orbywayofcommissionorotherchargesforspecificservicesperformedorformanagement,or,exceptinthecaseofa
bankingenterprise,bywayofinterestonmoneyslenttothepermanentestablishment.Likewise,noaccountshallbetaken,in
thedeterminationoftheprofitsofapermanentestablishmentforamountscharged(otherwisethantowardsreimbursement of
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.Noprofitsshallbeattributedtoapermanentestablishmentbyreasonofthemerepurchasebythatpermanentestablishment
ofgoodsormerchandisefortheenterprise.
5.Forthepurposesoftheprecedingparagraphs,theprofitstobeattributedtothepermanentestablishmentshallbedetermined
bythesamemethodyearbyyearunlessthereisgoodandsufficientreasontothecontrary.
6. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the
provisionsofthoseArticlesshallnotbeaffectedbytheprovisionsofthisArticle.

ARTICLE8
SHIPPINGANDAIRTRANSPORT
1.ProfitsderivedbyanenterpriseofaContractingStatefromtheoperationofshipsoraircraftininternationaltrafficshallbe
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taxableonlyinthatState.
2. Profits of an enterpriseof a Contracting State described in paragraph 1 from the use, maintenance, or rentalofcontainers
(includingtrailers,bargesandrelatedequipmentforthetransportofcontainers)usedforthetransportofgoodsormerchandise
ininternationaltrafficshallbetaxableonlyinthatState.
3.ForthepurposesofthisArticleinterestoninvestmentswhicharemadeinaContractingStateasintegralpartofcarryingon
thebusinessofoperationofshipsoraircraftininternationaltrafficshallberegardedasprofitsderivedfromtheoperationof
suchshipsoraircraft,andtheprovisionsofArticle11shallnotapplyinrelationtosuchinterest.
4.The provisions of paragraphs 1, 2 and 3 shall also apply to profits from the participation in a pool, a joint business or an
internationaloperatingagency.

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.WhereaContractingStateincludesintheprofitsofanenterpriseofthatStateandtaxesaccordinglyprofitsonwhichan
enterpriseoftheotherContractingStatehasbeenchargedtotaxinthatotherStateandtheprofitssoincludedareprofitswhich
wouldhaveaccruedtotheenterpriseofthefirstmentionedStateiftheconditionsmadebetweenthetwoenterpriseshadbeen
thosewhichwouldhavebeenmadebetweenindependententerprises,thenthatotherStateshallmakeanappropriateadjustment
totheamountofthetaxchargedthereinonthoseprofits.Indeterminingsuchadjustment,dueregardshallbehadtotheother
provisionsofthisAgreementandthecompetentauthoritiesoftheContractingStatesshallifnecessaryconsulteachother.

ARTICLE10
DIVIDENDS
1.DividendspaidbyacompanywhichisaresidentofaContractingStatetoaresidentoftheotherContractingStatemaybe
taxedinthatotherState.
2.However,suchdividendsmayalsobetaxedintheContractingStateofwhichthecompanypayingthedividendsisaresident
andaccordingtothelawsofthatState,butifthebeneficialownerofthedividendsisaresidentoftheotherContractingState,
thetaxsochargedshallnotexceed10percentofthegrossamountofthedividends.Thisparagraphshallnotaffectthetaxation
ofthecompanyinrespectoftheprofitsoutofwhichthedividendsarepaid.
3.Theterm"dividends"asusedinthisArticlemeansincomefromsharesorotherrights,notbeingdebtclaims,participatingin
profits,aswellasincomewhichissubjecttothesametaxationtreatmentas incomefrom shares by the lawsof theState of
whichthecompanymakingthedistributionisaresident.
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
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thecompany'sundistributedprofits,evenifthedividendspaidortheundistributedprofitsconsistwhollyorpartlyofprofitsor
incomearisinginsuchotherState.

ARTICLE11
INTEREST
1.InterestarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemaybetaxedinthatotherState.
2.However,suchinterestmayalsobetaxedintheContractingStateinwhichitarises,andaccordingtothelawsofthatState,
butifthebeneficialowneroftheinterestisaresidentoftheotherContractingState,thetaxsochargedshallnotexceed10per
centofthegrossamountoftheinterest.
3.Notwithstandingtheprovisionsofparagraph2,interestarisinginaContractingStateshallbeexemptfromtaxinthatState
provideditisderivedandbeneficiallyownedby:
(a)

theGovernment,apoliticalsubdivisionoralocalauthorityoftheotherContractingStateor

(b)

(i ) in the case of India, the Reserve Bank of India, the ExportImport Bank of India and the National
HousingBankor

(ii ) in the case of Latvia, the Bank of Latvia, the Mortgage and Land Bank of Latvia and the Latvian
GuaranteeAgencyor

(c)

anyothersimilarinstitutionasmaybeagreeduponfromtimetotimebetweenthecompetentauthorities
oftheContractingStatesthroughexchangeoflettersor

(d)

a resident of India, if the interest is paid in respect of a loan made, guaranteed or insured or a credit
extended,guaranteedorinsuredbytheGovernment,apoliticalsubdivisionoralocalauthorityofIndiaor
byanyofthebodiesmentionedinsubparagraph(b)(i)or(c)or

(e)

a resident of Latvia, if the interest is paid in respect of a loan made, guaranteed or insured or a credit
extended,guaranteedorinsuredbytheGovernmentoralocalauthorityofLatviaorbyanyofthebodies
mentionedinsubparagraph(b)(ii)or(c).

4.Theterm"interest"asusedinthisArticlemeansincomefromdebtclaimsofeverykind,whetherornotsecuredbymortgage
andwhetherornotcarryingarighttoparticipateinthedebtor'sprofits,andinparticular,incomefromgovernmentsecurities
andincomefrombondsordebentures,includingpremiums and prizes attaching to such securities, bonds or debentures.The
term"interest"shallnotincludeanyincomewhichistreatedasadividendundertheprovisionsofArticle10.Penaltycharges
forlatepaymentshallnotberegardedasinterestforthepurposeofthisArticle.
5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner 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
establishmentsituatedtherein,orperformsinthatotherStateindependentpersonalservicesfromafixedbasesituatedtherein,
andthedebtclaiminrespectofwhichtheinterestispaidiseffectivelyconnectedwithsuchpermanentestablishmentorfixed
base.InsuchcasetheprovisionsofArticle7orArticle14,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
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1.RoyaltiesorfeesfortechnicalservicesarisinginaContractingStateandpaidtoaresidentoftheotherContractingStatemay
betaxedinthatotherState.
2. However, such royalties or fees 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 and 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.
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
technicalservicesarepaidiseffectivelyconnectedwithsuchpermanentestablishmentorfixedbase.Insuchcasetheprovisions
ofArticle7orArticle14,asthecasemaybe,shallapply.
5.(a)RoyaltiesorfeesfortechnicalservicesshallbedeemedtoariseinaContractingStatewhenthepayerisaresidentofthat
State,Where,however,thepersonpayingtheroyaltiesorfeesfortechnicalservices,whetherheisaresidentofaContracting
Stateornot,hasinaContractingStateapermanentestablishmentorafixedbaseinconnectionwithwhichtheliabilitytopay
the royalties or fees for technical services was incurred, and such royalties or fees for technical services are borne by such
permanentestablishmentorfixedbase,thensuchroyaltiesorfeesfortechnicalservicesshallbedeemedtoariseintheStatein
whichthepermanentestablishmentorfixedbaseissituated.
(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,byreasonofaspecial relationshipbetweenthepayerandthebeneficialownerorbetweenbothofthemandsome
otherperson,theamountoftheroyaltiesorfeesfortechnicalservices,havingregardtotheuse,rightorinformationforwhich
theyarepaid,exceedstheamountwhichwouldhavebeenagreeduponbythepayerandthebeneficialownerintheabsenceof
suchrelationship,theprovisionsofthisArticleshallapplyonlytothelastmentionedamount.Insuchcase,theexcesspart of
thepaymentsshallremaintaxableaccordingtothelawsofeachContractingState,dueregardbeinghadtotheotherprovisions
ofthisAgreement.

ARTICLE13
INCOMEORGAINSONALIENATIONOFPROPERTY
1.IncomeorgainsderivedbyaresidentofaContractingStatefromthealienationofimmovablepropertyreferredtoinArticle
6andsituatedintheotherContractingStatemaybetaxedinthatotherState.
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.GainsderivedbyanenterpriseofaContractingStateoperatingshipsoraircraftininternationaltrafficfromthealienationof
shipsoraircraftoperatedininternationaltraffic,ormovablepropertypertainingtotheoperationofsuchshipsoraircraft,shall
betaxableonlyinthatState.
4. Gains from the alienation of shares of a company the property of which consists directly or indirectly principally of
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immovablepropertysituatedinaContractingStatemaybetaxedinthatState.
5.Gainsfromalienationofsharesotherthanthosementionedinparagraph4inacompanywhichisaresidentofaContracting
StatemaybetaxedinthatState.
6.Gainsfromthealienationofanypropertyotherthanthatreferredtoinparagraphs1,2,3,4and5,shallbetaxableonlyinthe
ContractingStateofwhichthealienatorisaresident.

ARTICLE14
INDEPENDENTPERSONALSERVICES
1.IncomederivedbyanindividualwhoisaresidentofaContractingStateinrespectofprofessionalservicesorotheractivities
ofanindependentcharactershallbetaxableonlyinthatStateunlesshehasafixedbaseregularlyavailabletohimintheother
ContractingStateforthepurposeofperforminghisactivities.Ifhehassuchafixedbase,theincomemaybetaxedintheother
Statebutonlysomuchofitasisattributabletothatfixedbase.Forthispurpose,whereanindividualwhoisaresidentofa
ContractingStatestaysintheotherContractingStateforaperiodorperiodsexceedingintheaggregate183daysinanytwelve
monthperiodcommencingorendinginthefiscalyearconcerned,heshallbedeemedtohaveafixedbaseregularlyavailableto
himinthatotherStateandtheincomethatisderivedfromhisactivitiesreferredtoabovethatareperformedinthatotherState
shallbeattributabletothatfixedbase.
2.Theterm"professionalservices"includesespeciallyindependentscientific,literary,artistic,educationalorteachingactivities
aswellastheindependentactivitiesofphysicians,lawyers,engineers,architects,dentistsandaccountants.

ARTICLE15
DEPENDENTPERSONALSERVICES
1. Subject to the provisions ofArticles 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
taxedinthatotherState.
2.Notwithstandingtheprovisionsof paragraph 1, remuneration derived by a resident of a Contracting State in respect of an
employmentexercisedintheotherContractingStateshallbetaxableonlyinthefirstmentionedStateIf:
(a)

therecipientispresentintheotherStateforaperiodorperiodsnotexceedingintheaggregate183daysin
anytwelvemonthperiodcommencingorendinginthefiscalyearconcerned,and

(b)

theremunerationispaidby,oronbehalfof,anemployerwhoisnotaresidentoftheotherState,and

(c)

theremunerationisnotbornebyapermanentestablishmentorafixedbasewhichtheemployerhasinthe
otherState.

3.NotwithstandingtheprecedingprovisionsofthisArticle,remunerationderivedinrespectofanemploymentexercisedaboard
ashiporaircraftoperatedininternationaltrafficbyanenterpriseofaContractingStatemaybetaxedinthatState.

ARTICLE16
DIRECTORS'FEES
Directors'feesandothersimilarpaymentsderivedbyaresidentofaContractingStateinhiscapacityasamemberoftheboard
ofdirectorsoranyothersimilarorganofacompanywhichisaresidentoftheotherContractingStatemaybetaxedinthatother
State.

ARTICLE17
ARTISTESANDSPORTSPERSONS
1.NotwithstandingtheprovisionsofArticles14and15,incomederivedbyaresidentofaContracting Stateasanentertainer,
suchasatheatre,motionpicture,radioortelevisionartiste,oramusician,orasasportsperson,fromhispersonalactivitiesas
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suchexercisedintheotherContractingState,maybetaxedinthatotherState.
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.Insuchcase,theincomeshallbetaxableonlyintheContractingStateof
whichtheentertainerorsportspersonisaresident

ARTICLE18
PENSIONS
1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a
ContractingStateinconsiderationofpastemploymentshallbetaxableonlyinthatState.
2. Notwithstanding the provisions OT paragraph 1 of thisArticle and paragraph 2 ofArticle 19, pensions and other similar
remunerationpaidunderthesocialsecuritylegislationofaContractingStateshallbetaxableonlyinthatState.

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,suchpensionshallbetaxableonlyintheotherContractingStateiftheindividualisaresidentof,andanational
of,thatState.
3.TheprovisionsofArticles15,16,17and18shallapplytosalaries,wagesandothersimilarremuneration,andtopensions,in
respectofservicesrenderedinconnectionwithabusinesscarriedonbyaContractingStateorapoliticalsubdivisionoralocal
authoritythereof.

ARTICLE20
PROFESSORS,TEACHERSANDRESEARCHSCHOLARS
1.Anindividualwhovisits aContractingStateforthepurposeofteachingorcarryingoutresearchatauniversity,collegeor
otherrecognizededucationalinstitutionsinthatContractingStateandwhoisorwasimmediatelybeforethatvisitaresidentof
theotherContractingState,shallbeexemptedfromtaxationinthefirstmentionedContractingStateonremunerationforsuch
teachingorresearchforaperiodnotexceedingtwoyearsfromthedateofhisfirstvisitforthatpurpose.
2.Theprovisionsofparagraph1ofthisArticleshallnotapplytoincomefromresearchifsuchresearchisundertakennotinthe
publicinterest,butprimarilyfortheprivatebenefitofaspecificpersonorpersons.

ARTICLE21
STUDENTS
1.Paymentswhichastudent,anapprenticeoratraineewhoisorwasimmediatelybeforevisitingaContractingStatearesident
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oftheotherContractingStateandwhoispresentinthefirstmentionedStatesolelyforthepurposeofhiseducationortraining,
receivesforthepurposeofhismaintenance,educationortrainingshallnotbetaxedinthatState,providedthatsuchpayments
arisefromsourcesoutsidethatState.
2. Notwithstanding the provisions of Article 15, remuneration which a student, or an apprentice or trainee who is or was,
immediately before visiting a Contracting State, a resident of the other Contracting State and who is present in the first
mentionedStatesolelyforthepurposeofhiseducationortraining,receivesfordependentpersonalservicesrenderedinthat
firstmentionedStateshallnotbetaxable in that State, provided that such services are directly related, and incidental, to his
education or training or the remuneration for those services is necessary to supplement the resources for his maintenance.
However,inanycasethebenefitsofthisparagraphshallnotbegrantedforaperiodofmorethanfiveconsecutiveyearsfrom
thedateofhisfirstarrivalinthefirstmentionedState.

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.Notwithstandingtheprovisionsofparagraph1,ifaresidentofaContractingStatederivesincomefromsourceswithinthe
otherContractingStateinformofwinningsfromlotteries,crosswordpuzzles,racesincludinghorseraces,cardgamesandother
gamesofanysortorgamblingorbettingofanynaturewhatsoever,suchincomemaybetaxedintheotherContractingState.

ARTICLE23
METHODSFORELIMINATIONOFDOUBLETAXATION
Doubletaxationshallbeeliminatedasfollows:
1.InIndia:
(a)

Where a resident of India derives income which, in accordance with the provisions of thisAgreement,
maybetaxedinLatvia,Indiashallallowasadeductionfromthetaxontheincomeofthatresident,an
amountequaltothetaxpaidinLatvia.

Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is
given,whichisattributable,asthecasemaybe,totheincomewhichmaybetaxedinLatvia.

(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.InLatvia:
(a)

WherearesidentofLatviaderivesincomewhich,inaccordancewiththeprovisionsofthisAgreement,
hasbeentaxedinIndia,Latviashall,subjecttotheprovisionsofsubparagraphs(b)and(c),exemptsuch
incomefromtax.

(b)

Where a resident of Latvia derives income which in accordance with the provisions of paragraph 2 of
Articles10,11and12maybetaxedinIndia,Latviashallallowasadeductionfromthetaxontheincome
ofthatresidentanamountequaltothetaxpaidinIndia.Suchdeductionshallnot,however,exceedthe
partofthetax,ascomputedbeforethedeductionisgiven,whichisattributabletotheincomewhichmay
betaxedinIndia.

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(c)

Where in accordance with any provision of the Agreement income derived by a resident of Latvia is
exempt from tax in Latvia, Latvia may nevertheless, in calculating the amount of tax on the remaining
incomeofsuchresident,takeintoaccounttheexemptedincome.

ARTICLE24
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
thatotherStateinthesamecircumstances,inparticularwithrespecttoresidence,areormaybesubjected.Thisprovisionshall,
notwithstandingtheprovisionsofArticle1,alsoapplytopersonswhoarenotresidentsofoneorbothoftheContractingStates.
2.StatelesspersonswhoareresidentsofaContractingStateshallnotbesubjectedineitherContractingStatetoanytaxationor
any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to
which nationals of the State concerned in the same circumstances, in particular with respect to residence, are or may be
subjected.
3.ThetaxationonapermanentestablishmentwhichanenterpriseofaContractingStatehasintheotherContractingStateshall
notbelessfavourablyleviedinthatotherStatethanthetaxationleviedonenterprisesofthatotherStatecarryingonthesame
activities.Thisprovisionshallnotbeconstrued asobliging a Contracting State to grant to residents of the other Contracting
Stateanypersonalallowances,reliefsandreductionsfortaxationpurposesonaccountofcivilstatusorfamilyresponsibilities
whichitgrantstoitsownresidents.ThisprovisionshallnotbeconstruedaspreventingaContractingStatefromchargingthe
profitsofapermanentestablishmentwhichacompanyoftheotherContractingStatehasinthefirstmentionedStateatarateof
taxwhichishigherthanthatimposedontheprofitsofasimilarcompanyofthefirstmentionedContractingState,norasbeing
inconflictwiththeprovisionsofparagraph3ofArticle 7.However, the difference in tax rate shall not exceed 1 percentage
points.
4. Except where the provisions of paragraph 1 ofArticle 9, paragraph 7 ofArticle 11, or paragraph 6 of Article 12, apply,
interest,royalties,feesfortechnicalservicesandotherdisbursementspaidbyanenterpriseofaContractingStatetoresidentof
theotherContractingStateshall,forthepurposeofdeterminingthetaxableprofitsofsuchenterprise,bedeductibleunderthe
sameconditionsasiftheyhadbeenpaidtoaresidentofthefirstmentionedState.
5.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.
6.TheprovisionsofthisArticleshall,notwithstandingtheprovisionsofArticle2,applytotaxesofeverykindanddescription.

ARTICLE25
MUTUALAGREEMENTPROCEDURE
1.WhereapersonconsidersthattheactionsofoneorbothoftheContractingStatesresultorwillresultforhimintaxationnot
inaccordancewiththeprovisionsofthisAgreement,hemay,irrespectiveoftheremediesprovidedbythedomesticlawofthose
States,presenthiscasetothecompetentauthorityoftheContractingStateofwhichheisaresidentor,ifhiscasecomesunder
paragraph1ofArticle24,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.ThecompetentauthoritiesoftheContractingStatesmaycommunicatewitheachotherdirectlyforthepurposeofreachingan
agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral
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exchange of opinions, such exchange may take place through a commission consisting of representatives of the competent
authoritiesoftheContractingStates.

ARTICLE26
EXCHANGEOFINFORMATION
1.ThecompetentauthoritiesoftheContractingStatesshallexchangesuchinformation("information"includesdocumentsor
certified copies of the documents) as is necessary for carrying out the provisions of thisAgreement or of the domestic laws
concerningtaxesofeverykindanddescriptionimposedonbehalfoftheContractingStates,oroftheirpoliticalsubdivisionsor
local authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not
restrictedbyArticles1and2.AnyinformationreceivedbyaContractingStateshallbetreatedassecretinthesamemanneras
information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including
courtsandadministrativebodies)concernedwiththeassessmentorcollectionof,theenforcementorprosecutioninrespectof,
orthedeterminationofappealsinrelationtothetaxesreferredtointhefirstsentence.Suchpersonsorauthoritiesshallusethe
information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such
informationmaybeusedforsuchotherpurposesunderthelawsofbothStatesandthecompetentauthorityofthesupplying
Stateauthorisessuchuse.
2.Innocaseshalltheprovisionsofparagraph1beconstruedsoastoimposeonaContractingStatetheobligation:
(a)

tocarryoutadministrativemeasuresatvariancewiththelawsandadministrativepracticeofthatorofthe
otherContractingState

(b)

tosupplyinformationwhichisnotobtainableunderthelawsorinthenormalcourseoftheadministration
ofthatoroftheotherContractingState

(c)

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

3.IfinformationisrequestedbyaContractingStateinaccordancewiththisArticle,theother ContractingStateshalluseits
information gathering measures to obtain the requested information, even though that other State may not need such
information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of
paragraph2butinnocaseshallsuchlimitationsbeconstruedtopermitaContractingStatetodeclinetosupplyinformation
solelybecauseithasnodomesticinterestinsuchinformation.
4.Innocaseshalltheprovisionsofparagraph2beconstruedtopermitaContractingStatetodeclinetosupplyinformation
solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a
fiduciarycapacityorbecauseitrelatestoownershipinterestsinaperson.

ARTICLE27
ASSISTANCEINCOLLECTION
1.The Contracting Statesundertake to lend assistance to each other in the collection of the taxes owed by a taxpayer to the
extentthattheamountthereofhasbeenfinallydeterminedaccordingtothelawsoftheContractingStatemakingtherequestfor
assistance.
2.InthecaseofarequestbyaContractingStateforthecollectionoftaxeswhichhasbeenacceptedforcollectionbytheother
ContractingState,suchtaxesshallbecollectedbythatotherStateinaccordancewiththelawsapplicabletothecollectionofits
owntaxesandasifthetaxestobesocollectedwereitsowntaxes.
3.Anyrequestforcollection byaContractingStateshallbeaccompaniedbysuchcertificateasisrequiredbythelawsofthat
Statetoestablishthatthetaxesowedbythetaxpayerhavebeenfinallydetermined.
4.WherethetaxclaimofaContractingStatehasnotbeenfinallydeterminedbyreasonofitbeingsubjecttoappealorother
proceeding,thatStatemay,inordertoprotectitsrevenues,requesttheotherContractingStatetotakesuchinterimmeasuresfor
conservancyonitsbehalfasareavailabletotheotherStateunderthelawsofthatotherState.Ifsuchrequestisacceptedbythe
otherState,suchinterimmeasuresshallbetakenbyitasifthetaxesowedtothefirstmentionedStateweretheowntaxesof
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thatotherState.
5.Arequestunderthepreceding paragraphsofthisArticleshallonlymadebyaContractingStateto theextentthatsufficient
propertyofthetaxpayerowingthetaxesisnotavailableinthatStateforrecoveryofthetaxesowed.
6.TheContractingStateinwhichtaxisrecoveredinaccordancewiththeprovisionsofthisArticleshallforthwithremittothe
ContractingStateonbehalfofwhichthetaxwascollectedtheamountsorecoveredminus,whereappropriate,theamountof
extraordinarycostsreferredtoinsubparagraph(b)ofparagraph7.
7.ItisunderstoodthatunlessotherwiseagreedbythecompetentauthoritiesofbothContractingStates,
(a)

ordinarycostsincurredbyaContractingStateinprovidingassistanceshallbebornebythatState

(b)

extraordinary costs incurred by a Contracting State in providing assistance shall be borne by the other
StateandshallbepayableregardlessoftheamountcollectedonbehalfoftheotherState.

AssoonasaContractingStateanticipatesthatextraordinarycostsmaybeincurred,itshallsoadvisetheotherContractingState
andindicatetheestimatedamountofsuchcosts.
8. In thisArticle, the term "taxes" means taxes to which the paragraph 1 ofArticle 26 applies and includes any interest and
penaltiesrelatingthereto.
9.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.

ARTICLE28
LIMITATIONOFBENEFITS
1. The competent authorities upon their mutual agreement, may deny the benefits of this Agreement to a resident of a
ContractingState,orwithrespecttoanytransactionundertakenbysucharesident,ifintheiropinionthemainpurposeofthe
creationorexistenceofsucharesidentorofthetransactionundertakenbyhim,wastoobtainthebenefitsunderthisAgreement
thatwouldnototherwisebeavailable.
2. The competent authorities of the Contracting States may consult together with a view to develop a commonly agreed
applicationoftheprovisionsofthisArticle.

ARTICLE29
MEMBERSOFDIPLOMATICMISSIONSANDCONSULARPOSTS
Nothing in thisAgreement 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

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onorafterthefirstdayofAprilnext followingthecalendaryearin
whichtheAgreemententerintoforce
(b)

inLatvia:

(i) inrespectoftaxeswithheldatsource,onincomederivedonafterthefirstdayofJanuaryinthecalendaryearnext
followingtheyearinwhichthenoticehasbeengiven
(ii) in respect of other taxes on income for taxes chargeable for any fiscal year beginning on or after the first day of
Januaryinthecalendaryearnextfollowingtheyearinwhichthenoticehasbeengiven.

ARTICLE31
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,inrespectofincomederivedinanyfiscalyearonorafter
thefirstdayofAprilnextfollowing thecalendaryearinwhichthe
noticeisgiven

(b)

inLatvia:

(i) inrespectoftaxeswithheldatsource,onincomederivedonorafterthefirstdayofJanuaryinthecalendaryearnext
followingtheyearinwhichthenoticehasbeengiven
(ii) in respect of other taxes on income for taxes chargeable for any fiscal year beginning on or after the first day of
Januaryinthecalendaryearnextfollowingtheyearinwhichthenoticehasbeengiven.
Inwitnesswhereof,theundersigned,dulyauthorisedthereto,havesignedthisAgreement.
DoneinduplicateatNewDelhithis18thdayofSeptember,2013,eachintheHindi,LatvianandEnglishlanguages,alltexts
beingequallyauthentic.Inthecaseofdivergenceofinterpretation,theEnglishtextshallprevail.
AGREEDNOTE
At the signing of theAgreement between the Government of the Republic of India and the Government of the Republic of
Latviafortheavoidanceofdoubletaxationandthepreventionoffiscalevasionwithrespectto taxeson income (hereinafter
referred to as "the Agreement") the undersigned have agreed upon the following provisions with purpose to clarify the
applicationoftheAgreement.
1.WithreferencetoArticle5:
ItisunderstoodthatonthedateofsignatureofthisAgreementnoneof theagreementsfortheavoidance of double taxation
concludedbyLatviaprovideforspecialprovisiondeeminganinsuranceenterpriseofaContractingStatetohaveapermanent
establishmentintheotherContractingStateifitcollectspremiumsorinsuresrisksintheterritoryofthatotherStatethrougha
dependentagent.
However,ifafterthatdate,suchspecialprovisionisincludedinanyagreementfortheavoidanceofdoubletaxationconcluded
byLatvia,then,afterconsultationsbetweenthecompetentauthoritiesofthebothStates,suchprovisionshallalsobeconsidered
forthisAgreement.
2.Withreferencetoparagraph4ofArticle5:
Itisunderstoodthattheprovisionsofparagraph4ofArticle5aredesigned topreventanenterpriseofoneContractingState
frombeingtaxedintheotherState,ifitcarriesoninthatotherState,activitiesofapurelypreparatoryorauxiliarycharacter.
3.Withreferencetoparagraph3ofArticle5:
Itisunderstoodthatthesupervisoryactivitiesorservicesreferredtoinparagraph3ofArticle5does notincludeactivitiesor
servicescoveredundersubparagraph(b)ofparagraph3ofArticle12.
DoneinduplicateatNewDelhithis18thdayofSeptember,2013,eachintheHindi,LatvianandEnglishlanguages,alltexts
beingequallyauthentic.Inthecaseofdivergenceofinterpretation,theEnglishtextshallprevail.
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