The Central government on Wednesday notified the protocol amending the Double Taxation Avoidance Agreements (DTAA) between India and Vietnam.
The Notification amends the provision relating to exchange of information and stated that the competent authorities of the Contracting States shall exchange such information (including documents) either on a routine basis or on request with reference to particular cases or both.
It is stated that if information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
Regarding the assistance in collection of taxes, it said that the Contracting States shall lend assistance to each other in the collection of revenue claims subject to restrictions contained in the agreement.
“When a revenue claim of a Contracting State is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of collection by the competent authority of the other Contracting State. That revenue claim shall be collected by that other State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other State,” it said.
Read the full text of the Notification below.
