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ARTICLE 3

General Definitions

(1) For the purposes of this Agreement, unless the context otherwise requires:

  • (a) the term "India" means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the United Nations Convention on the Law of the Sea;
  • (b) the term "Malaysia" means the territories of the Federation of Malaysia, the territorial waters of Malaysia and the seabed and subsoil of the territorial waters, and the air space above such areas, and includes any area extending beyond the limits of the territorial waters of Malaysia, and the seabed and subsoil of any such area, which has been or may hereafter be designated under the laws of Malaysia and in accordance with international law as an area over which Malaysia has sovereign rights or jurisdiction for the purposes of exploring and exploiting the natural resources, whether living or non-living;
  • (c) the terms "Contracting State" and "the other Contracting State" mean the Republic of India or Malaysia as the context requires;
  • (d) the term "person" includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting States;
  • (e) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;
  • (f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
  • (g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
  • (h) the term "competent authority" means:
    • (i) in the case of India: the Finance Minister, Government of India, or his authorized representative;
    • (ii) in the case of Malaysia, the Minister of Finance or his authorized representative;
  • (i) the term "national" means:
    • (i) any individual possessing the nationality or citizenship of a Contracting State; and
    • (ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State;
  • (j) the term "tax" means Malaysian tax or Indian tax, as the context requires, but shall not include any amount which is payable in respect of a default or omission in relation to the taxes to which this Agreement applies or which represents a penalty or fine imposed relating to those taxes;
  • (k) for the purposes of the Agreement, the term "fiscal year" wherever it appears means:
    • (i) in the case of India, the financial year beginning on 1 April;
    • (ii) in the case of Malaysia, the meaning as assigned by section 20 of the Income Tax Act, 1967.

(2) As regards the application of the Agreement at any time by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies and any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.