Article 1 - Object of the convention and persons covered - OECD Member Countries

MINISTRY OF FINANCE (Department of Revenue) New Delhi, 28th August, 2012 Notification No. 35/2012 (INCOME-TAX) S.O. 1990(E). Whereas, a Multilateral Convention on Mutual Administrating Assistance in Tax Matter and as amended by the 2010 protocol was signed by the Republic of India at the headquarters of the Organisation for Economic Co-operation and Development (OECD) at Paris on the 26rd day of January, 2012 (hereinafter referred to as the said Convention); And, whereas, the instrument of ratification was deposited in OECD on 21st February 2010, the date of entry into force of the said convention for India is the 1st day of June, 2012 in accordance with paragraph 3 of Article 28 of the said Convention; Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of the Convention for Mutual Administrative Assistance on Tax Matters, as set out in the Annexure hereto, shall be given effect to in the Union of India with effect from the 1st June, 2012, that is, the date of entry into force of the said Convention. Notification No. 35/2012 [F. No. 500/154/2009-FTD-I], SANJAY KUMAR, MISHRA, Jt. Secy. Convention on Mutual Administrative Assistance in Tax Matters Text amended by the provisions of the Protocol amending the Convention on Mutual Administrative Assistance in Tax Matters, which entered into force on 1st June 2011. Preamble The member States of the Council of Europe and the member countries of the Organisation for Economic Co-operation and Development (OECD), signatories of this Convention. Considering that the development of international movement of persons, capital, goods and services - although highly beneficial in itself - has increased the possibilities of tax avoidance and evasion and therefore requires increasing co-operation among tax authorities; Welcoming the various efforts made in recent years to combat tax avoidance and tax evasion on an international level, whether bilaterally or multilaterally; Considering that a co-ordinated effort between States is necessary in order to foster all forms of administrative assistance in matters concerning taxes of any kind whilst at the same time ensuring adequate protection of the rights of taxpayers; Recognising that international co-operation can play an important part in facilitating the proper determination of tax liabilities and in helping the taxpayer to secure his rights; Considering that fundamental principles entitling every person to have his rights and obligations determined in accordance with a proper legal procedure should be recognised as applying to tax matters in all States and that States should endeavour to protect the legitimate interests of taxpayers, including appropriate protection against discrimination and double taxation; Convinced therefore that States should carry out measures or supply information, having regard to the necessity of protecting the confidentiality of information, and taking account of international instruments for the protection of privacy and flows of personal data; Considering that a new co-operative environment has emerged and that it is desirable that a multilateral instrument is made available to allow the widest number of States to obtain the benefits of the new co-operative environment and at the same time implement the highest international standards of co-operation in the tax field; Desiring to conclude a convention on mutual administrative assistance in tax matters, Have agreed as follows : CHAPTER I SCOPE OF THE CONVENTION ARTICLE 1 OBJECT OF THE CONVENTION AND PERSONS COVERED 1 . The Parties shall, subject to the provisions of Chapter IV, provide administrative assistance to each other in tax matters. Such assistance may involve, where appropriate, measures taken by judicial bodies. 2. Such administrative assistance shall comprise: (a). exchange of information, including simultaneous tax examinations and participation in tax examinations abroad; (b). assistance in recovery, including measures of conservancy; and (c). service of documents. 3. A Party shall provide administrative assistance whether the person affected is a resident or national of a Party or of any other State.