New Delhi, 30 November 1974
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE AND INSURANCE
New Delhi,
30 November, 1974
EXCELLENCY,
I have the honour to refer to Article XII of the Agreement between India and Japan for the Avoidance of Double Taxation in respect
of Taxes on Income signed at New Delhi on January 5, 1960 ( hereinafter referred to as “the Agreement”) and to Article VIII, paragraph
3 of the Protocol Modifying and Supplementing the Agreement signed at New Delhi on April 8, 1969 PROTOCOL (hereinafter referred to
as “the Protocol”) and to confirm, on behalf of the Government of India, the following understandings reached between the representatives
of the two Governments :
1. In implementing the provisions of Article XII of the Agreement, it is understood that :
(1) The competent authorities of the Contracting States shall exchange such information including documents (hereinafter referred
to as “information”) as is necessary for carrying out the provisions of the Agreement, including information for the prevention or
detection of evasion or avoidance of the taxes which are the subject of the Agreement. Any information so exchanged shall be treated
as secret but may be disclosed to persons (including a court or administrative body) concerned with the assessment, collection, enforcement
or prosecution in respect of the taxes which are the subject of the Agreement or to persons with respect to whom the information
relates.
(2) The exchange of information shall be either on a routine basis or on request with reference to particular cases. The competent
authorities of the Contracting States shall agree from time to time on the list of information which shall be furnished on a routine
basis.
(3) In no case shall the provisions of paragraph (1) above be construed so as to impose on one of the Contracting States the obligation
:
(a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting
State;
(b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other
Contracting State;
(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process,
or information, the disclosure of which would be contrary to public policy.
2. With reference to Article VIII, paragraph 3 of the Protocol :
The provisions of paragraph 1 of Article IV of the Protocol shall continue to be applicable :
(i) on the part of India, in respect of the assessment year commencing on the lst day of April, 1972 and the subsequent four assessment
years; and
(ii) on the part of Japan, in respect of any taxable year beginning between the lst day of January, 1971 and the 3lst day of December,
l975.
I have further the honour to propose that this Note and Your Excellency’s Note in reply confirming the foregoing understandings shall
be regarded as constituting an agreement between the two Governments, which will enter into force on the date of Your Excellency’s
reply and remain in force as long as the Agreement and the Protocol remain in force.
I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration.
Sd/-
H.N. RAY
Secretary of the Government of India
His Excellency Mr, KINYA NIISEKI,
Ambassador Extraordinary and
Plenipotentiary of Japan to India
New Delhi
November 30, 1974
EXCELLENCY,
I have the honour to acknowledge the receipt of Your Excellency’s Note of today’s date which reads as follows :
(Not reproduced)
I have further the honour to confirm the foregoing understanding on behalf of the Government of Japan and to agree that Your Excellency’s
Note and this Note shall be regarded as constituting an agreement between the two Governments, which will enter into force on the
date of this reply and remain in force as long as the Agreement and the Protocol remain in force.
I avail myself of this opportunity to renew to Your Excellency the assurances of my highest consideration.
Sd /-
KINYA NIISEKI
Ambassador Extraordinary and
Plenipotentiary of Japan to India
Sd/-
Mr. H.N. RAY
Secretary to the Government of India
Ministry of Finance
