[Title] Protocol, Agreement between Japan and India for the Avoidance of Double Taxation in Respect of Taxes on Income.

The Government of Japan and the Government of India,

Considering that the Government of India has taken and may take special incentive measures designed to promote economic development in India,

Recognizing that the achievement of the objectives of such measures in relation to capital and technology supplied to India from Japan requires, in addition to the arrangement provided for in paragraph (3) (b) of Article XI of the Agreement between Japan and India for the Avoidance of Double Taxation in respect of Taxes on Income, a supplementary arrangement,

Have accordingly agreed, at the time of signing the said Agreement, on the following provisions which shall constitute an integral part thereof:

"For the purposes of the credit referred to in paragraph (3) (a) of Article XI, there shall be deemed to be paid by the taxpayer the amount by which Indian tax will be reduced by any special incentive measure which may be taken in future under the Indian tax laws (including any future modification involving increase in the scope of the benefit accorded to the taxpayer by the special incentive measures set forth in the sections of the Indian Income-tax Act, 1922 (11 of 1922), as mentioned in paragraph (3) (b) of Article XI), provided that an agreement to that effect is made between the Governments of the Contracting States in respect of that special measure."

IN WITNESS WHEREOF the undersigned Plenipotentiaries have signed the present Protocol.

DONE at New Delhi in duplicate in the English language on the 5th day of January, 1960.

For Japan:

Shiroshi NASU

For India:

B. GOPALA REDDI