TERMINATION OF TREATY
ARTICLE 31 OF THE INDIA – US TREATY
This Convention shall remain in force indefinitely
but either of the Contracting States may,
on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of the entry into force of the Convention,
give the other Contracting State through diplomatic channels,
written notice of termination and,
in such event, this Convention shall cease to have effect : –
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(a)in the United States –
(i) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January next following the calendar year in which the notice of termination is given; and
(ii) in respect of other taxes, for taxable periods beginning on or after the first day of January next following the calendar year in which the notice of termination is given; and
(b) in India, in respect of income arising in any taxable year beginning on or after the first day of April next following the calendar year in which the notice of termination is given.
CHARACTERISTICS
- Both States have right to terminate a Treaty, at any time or after specified period
- Notice of 6 Months is generally required to be given
- Date of Cessation could be as per term of the agreement between Treaty Partners
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