Avoidance of double taxation–Philippines– Government amends Notification
The Central Government has amended Notification No.GSR 173 (E) dt. 2.4.1996 to substitute Article 15 (1) (b) of the convention with
"If the recipient is present in the other State for period or periods exceeds in the aggregate 183 days in the relevant "previous year" in the case of Republic India or "calendar year" in the case of Republic of the Philippines".
The original Article 15 (1) (b) as per Notification No. 173 (E) dt. 2.4.1996 stood like this
“(b) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant "previous year" in the case of Republic of India or "calendar year" in the case of Republic of the Philippines.”
The difference between these two is that as per the old notification, period of stay in the other state should not exceed 183 days but as per the present amendment the period should exceed 183 days.
Strangely there is another angle to this story. As per CBDT’s website www.incometaxindia.gov.in the notification governing the double taxation agreement between Philippines and India is Notification No.10041 dt.25.3.96. As per this notification article 15 (1)(b) reads as follows:
“(b) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant " previous year " in the case of Republic of India or " calendar year " in the case of Republic of the Philippines.”
Will the CBDT please clarify whether the notification is 173(E) or 10041 and whether the stay in the other state should be more than 183 days or less?
Notification No. dt.02.02.2005