What Is Mutual Agreement Procedure India

1. Where a person subject to an assessment established in India is breached by a measure taken by the tax authorities of a country or territory outside India because he considers that the act is not in conformity with the terms of the agreement with that other country or territory, he may submit an application to the competent authority in India for the application of the amiability procedure, if such an agreement provides: in Form No 34F (attached to the notification). In order to avoid unintended hardship for taxpayers during the suspension of WFP implementation and to effectively manage revenues, India has signed a Memorandum of Understanding with some countries on the suspension of tax collection. These include the United States, Great Britain, Denmark, Sweden and South Korea. In this context, the guidelines specify that the fees that may be suspended are those arising from the dispute discussed in map. With respect to POPs cases with other countries, India`s domestic law regulates procedures related to the suspension of tax collection or the suspension of the application. This usually involves the partial or full payment of the tax claim issued by the Indian tax authorities. Article 25 defines three different areas in which amoprociary procedures are generally applied. Article map of the Indian Income Tax Convention is based on Article 25 of the OECD Model Convention. A MAP request may be made by a taxpayer if it is the action of the tax authorities of one or both parties accordingly or not in accordance with the relevant tax treaty. This procedure enables the competent authorities of the Contracting States to resolve by mutual agreement differences or difficulties in the interpretation or application of tax treaties.

2. Where a reference has been obtained from the competent authority of a country or territory outside India under an agreement with that specific country or territory with regard to measures taken by a tax authority in India or the tax authorities of that specific country or territory, the competent authority in India shall transmit to the competent authority its consent or otherwise to include the reference in the amoeprociary procedure. of the other country or specific territory. . . . .