CBDT notifies Tax Agreement between India and Kingstown, Saint Vincent and the Grenadines

The Central Board of Direct Taxes (CBDT) has notified Tax Agreement between India and Kingstown, Saint Vincent and the Grenadines via issuing Notification.

The Notification stated:

An Agreement between the Government of the Republic of India and the Government of Saint Vincent and the Grenadines for the Exchange of Information and Assistance in collection with respect to taxes was signed at Kingstown, Saint Vincent and the Grenadines on the 19th day of May of 2022, as set out in the Annexure to this notification (hereinafter referred to as the Agreement).

And whereas, the said Agreement entered into force on the 14th day of February, 2023, being the date of the later of the notifications of the completion of the procedures required by the respective laws of the contracting states for entry into force of the said agreement, in accordance with paragraphs 1 and 2 of Article 12 of the Agreement,

And whereas, paragraph 2 of Article 12 of the said Agreement also provides that the Agreement shall have effect forthwith after the date of entry into force;

Now, therefore, in exercise of the powers conferred by sub-section (1) of section 90 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies that all the provisions of said Agreement, as annexed hereto, shall be given effect to in the Union of India

Object and Scope of the Agreement

The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement.

The appropriate authorities must also assist one another in the collection of tax claims. The rights and safeguards secured to individuals by the requesting Party’s laws or administrative practise continue to apply to the extent that they do not prohibit or delay the effective sharing of information or assistance in collection.

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