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Application of the MLI to the Tax Treaty between Japan and India

  The MLI enters into force for Japan on January 1, 2019, and for India on October 1, 2019.
  Based on the reservations and notifications submitted by Japan on September 26, 2018 and by India on June 25, 2019, the MLI applies to the tax treaty between Japan and India as described below.

1. Tax treaty covered by the MLI
    - “Convention between the Government of Japan and the Government of the Republic of
       India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect
       to Taxes on Income”
       Date of signature: March 7, 1989
       Date of entry into force: December 29, 1989
    - “Protocol Amending the Convention between the Government of Japan and the Government of the Republic of
       India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income”
       Date of signature: February 24, 2006
       Date of entry into force: June 28, 2006
    - “Protocol Amending the Convention between the Government of Japan and the Government of the Republic of
       India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income”
       Date of signature: December 11, 2015
       Date of entry into force: October 29, 2016

2. Provisions of the MLI applicable to the tax treaty
    - Article 4(1) (Provisions that provide rules for determining whether a person other than an individual shall be treated
      as a resident of one of the Contracting Jurisdictions for the purposes of the tax treaty) 
    - Article 6(1) (Preamble language describing the intent of the Contracting Jurisdictions that the tax treaty will not
      create opportunities for non-taxation or reduced taxation)
    - Article 7(1) (Provisions that deny the benefits under the tax treaty where the principal purpose or one of the
      principal purposes of any arrangement or transaction was to obtain those benefits)
    - Article 9(4) (Provisions for taxation on capital gains from alienation of shares or interests of entities deriving their
      value principally from immovable property)
    - Article 10(1) to (3) (Provisions that deny the benefits under the tax treaty with respect to a certain income
      attributable to a permanent establishment situated in a third jurisdiction)
    - Article 12(1) and (2) (Provisions regarding an agent that is deemed to constitute a permeant establishment)
    - Article 13(2) (Provisions regarding an activity that is deemed not to constitute a permanent establishment even if
      the activity is carried on through a fixed place of business)
    - Article 13(4) (Provisions for combining business activities carried on by closely related persons for the purpose of
      determining whether a permanent establishment exists)
    - Article 15 (Provisions for the definition of a person closely related to an enterprise)
    - Article 17(1) (Provisions regarding corresponding adjustments to taxation in accordance with arm’s length
      principle)

3. Entry into effect
    The provisions of the MLI shall have effect in each Contracting Jurisdiction with respect to the tax treaty between Japan and India:
    (a) in Japan:
      (i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving
          rise to such taxes occurs on or after January 1, 2020; and
      (ii) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with respect to taxable
          periods beginning on or after April 1, 2020; and
    (b) in India:
      (i) with respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving
          rise to such taxes occurs on or after the first day of the next taxable period that begins on or after October 1,
          2019; and
      (ii) with respect to all other taxes levied by that Contracting Jurisdiction, for taxes levied with respect to taxable
          periods beginning on or after April 1, 2020.