1. Nationals of a Contractant State must not be subject in the other State party to a tax or requirement that is different or more burdensome than the imposition and related requirements to which the nationals of that other State Party are or may be subject in the same circumstances. This agreement does not affect the tax privileges of diplomatic or consular officials, in accordance with the general rules of international law or the provisions of specific agreements. 3. The competent authorities of the contracting states try to resolve by mutual agreement any difficulty or doubt about the interpretation or application of the convention. They can also work together to eliminate double taxation in cases not included in this agreement. This agreement focuses on world peace, international security, development and sustainability by pre-defining the various aspects and interpretation of existing laws. (1) In China, double taxation is abolished as follows: the annexed agreement between the Government of the Republic of India and the Government of the People`s Republic of China to avoid double taxation and to prevent tax evasion as part of income taxation came into force on 21 November 1994, after the two States Parties were notified of the application of the procedures under their tax obligations. laws relating to the entry into force of the agreement under Article 28 of that agreement; in accordance with the provisions of this agreement (except to the extent that these provisions authorize the taxation of India only because the income is also income from a resident established in India), the Chinese tax imposed on that resident may be credited. However, the amount of the credit must not exceed the amount of Chinese tax on this income, calculated in accordance with Chinese tax laws and regulations.
This bilateral economic agreement is modified by the release of protocols to reduce the scope of non-taxation or taxation reduced by tax evasion.