4. The competent authorities of the States Parties may communicate directly with each other with a view to reaching an agreement within the meaning of the preceding paragraphs. The attached Convention between the Government of the Republic of India and the Government of the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in the Field of Taxation on Income has been ratified and the instruments of ratification have been exchanged in accordance with Article 29. (1) of the said Convention – on 1 August 1986; The contract will apply from 1 April 2017 in India and from 1 January 2017 in South Korea. The 1985 tax treaty between the two countries will expire on the date of entry into force of the new agreement. If, under paragraph 1, a person other than an individual is an obligated party of both Contracting States, he shall be deemed to reside in the State in which he has his place of effective management. In case of doubt, the competent authorities of the Contracting States shall settle the matter by mutual agreement. 4. The competent authorities of the States Parties may communicate directly with each other with a view to reaching an agreement within the meaning of the preceding paragraphs. If, in order to reach an agreement, it appears appropriate to hold an oral exchange of views, such an exchange may take place through a commission composed of representatives of the competent authorities of the State Party. Article 27 EXCHANGE OF INFORMATION 1. The competent authorities shall exchange, on behalf of the Contracting States, the information (including documents) necessary for the application of this Convention or the domestic laws of the Contracting States concerning taxes covered by the Convention, provided that the taxation provided for in the Convention is not contrary to the Convention, in particular for the prevention of tax evasion or avoidance. The exchange of information shall not be restricted by Article 1.
All information received from a State Party shall be treated secretly in the same manner as information obtained under the domestic law of that State. However, where information initially considered secret in the transmitting State is disclosed to persons or authorities (including courts and administrative bodies) involved in determining or recovering enforcement or prosecution in respect of taxes covered by the Convention. These persons or authorities use the information only for these purposes, but may disclose it before public courts, proceedings or court decisions. Competent authorities shall develop, through consultation, appropriate conditions, methodologies and techniques with regard to the matters on which such an exchange of information takes place, including, where appropriate, the exchange of information on tax avoidance. 1. 2. Paragraph 1 shall in no way be construed as imposing on a State Party the obligation: (a) to take administrative measures which deviate from the laws and administrative practices of that State or of the other Contracting State; b. to provide information which is not available under the law or in the normal administration of that State or of the other Contracting State; c. provide information that would reveal commercial, commercial, industrial, commercial or professional secrets or commercial procedures, or information the disclosure of which would be contrary to public policy (public policy). Article 28 DIPLOMATIC STAFF AND CONSULAR OFFICERS This Convention shall not affect the fiscal privileges of diplomatic and consular agents by virtue of the general rules of international law or the provisions of special agreements.
Article 29 ENTRY INTO FORCE 1. This Convention shall be ratified and the instruments of ratification shall be exchanged in Seoul as soon as possible. The Convention shall enter into force on the thirtieth day following the date of exchange of the instruments of ratification. This Convention shall take effect: a. in Korea: i. in respect of withholding tax on amounts paid or credited to non-residents from the first day of January of the calendar year following the calendar year following the calendar year in which the Agreement is initialled; and ii. for other taxes for taxation years beginning on or after the first day of January of the calendar year following the calendar year in which the Convention is initialled. b. In India: i. in respect of withholding tax on amounts paid or credited to non-residents from the first day of January following the calendar year in which notice of termination is given; and ii. in respect of other taxes for taxation years beginning on the first day of January following the calendar year in which the termination is pronounced. .