The map article of the Indian Income Tax Convention is based on Article 25 of the OECD Model Tax Convention. An application for a POPs may be made by a taxpayer if it takes into account the actions of the tax authorities of one or both contractors or results in a tax that does not comply with the applicable tax treaty. This procedure allows the competent authorities of the contracting states to settle disputes or difficulties in interpreting or applying tax treaties on a consensual basis. 3. With regard to the issues contained in Form 34F or in the submission by the competent authority of a country or region outside India, the competent authority of India requests the relevant records and supplementary documents to the income tax authority or the notator or its agent in India or, to understand : , taken by income tax authorities, in or outside India, and which do not comply with the terms of the agreements between India and the other country or territory. Article 25 contains three distinct areas in which the mutual agreement procedure is generally applied. In order to avoid unintended severity for taxpayers during the period of suspension of the application of POPs and for effective management of revenue collection, India has signed a Memorandum of Understanding with some countries on the suspension of tax collection. These include the United States, the United Kingdom, Denmark, Sweden and South Korea. In this regard, the guidelines specify that taxes that may be suspended are taxes that resulted from the litigation being debated in the POP context.
With respect to POPs with other countries, Indian national law regulates procedures for suspending tax collection or suspending the application. This is usually the partial or full payment of the tax debt, as issued by the Indian tax authorities. The rule may be in the rules of income tax, 1962, which is available on our website www.incometaxindia.gov.in If both CAs successfully resolve a MAP case, they would formalize a mutual agreement as soon as possible. The Indian BOARD in charge of the case would insert the Indian taxpayer who had requested POPs on the terms of the resolution. The adoption or rejection of the POP resolution is the prerogative of the Indian taxpayer, but in both cases the map case would be closed by both IFAs as resolved.