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TMI BlogIndia-Danish Double Taxation Avoidance Convention(DTAC)- suspension of collection of taxes during Mutual Agreement ProcedureX X X X Extracts X X X X X X X X Extracts X X X X ..... e is invited to Article 25 of Indo-Danish DTAC regarding Mutual Agreement Procedure (MAP) which provides that in a case where a resident of a Contracting Stateconsiders that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the Convention, he may, notwithstanding the remedies provided by the domestic law of the States, present h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Contracting State in the case of its resident enterprise taxes profits on which an enterprise of the other Contracting State has been charged to tax in the other State but such profit was taxable in the firstmentioned State if the transactionsbetween the two enterprises had beenunder arms length condition, then the other Contracting State shall make an appropriate adjustment to the amount of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Authority. 4. A copy of the MOU is enclosed along with a model draft of bank guarantee to be furnished by the taxpayer. These are self-explanatory. 5. On receipt of a formal request in terms of this MOU from a taxpayer being a resident of Denmark or an Indian resident entity (referred to in paragraph 2 above) in a case where MAP has been invoked through the Danish Competent Authority and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer for extension of time limit for payment of taxes. The extension however, shall subsist until the case is resolved under MAP. In case the Competent Authorities agree that there is no resolution possible, intimation to this effect shall be given to the Assessing Officer who shall, thereafter be entitled to invoke the guarantee in case the tax payer fails to pay the demand. 7. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the Joint Commissioners of Income-tax/Joint Directors of Income-tax/Additional Commissioners of Income-tax/Additional Directors of Income-tax/ Commissioners of Income-tax/ Directors of Income-tax, are advised to keep a close watch on the limitation of the guarantee furnished under the MAP. 9. These instructions, issued under section 119 of the Income-tax Act, may be brought to the notice of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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