ARTICLE 26
EXCHANGE OF INFORMATION

1.         The competent authorities of the Contracting State shall exchange such information or document as in necessary for carrying out the provisions of this Convention or for the prevention of fraud or evasion of taxes which are the subject of this Convention. Any information or document  received by a Contracting State shall be treated as secret in the same manner as infomation or document obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the  assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authroities shall use the information or document only for such purposes. They may disclose the information or document in public court proceedings or in judicial decisions.

2.         The exchange of information or document shall be either on a routine basis or on request with reference to particular case or both. The competnent authorities of the Contracting States shall agree from time to time on the list of the information or documents which shall be furnished on a routine bases.

3.         In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

             (a)        to carry out administrative meausres at variance with the

                          laws or administrative practice of that or of the other

                          Contracting State;

             (b)        to supply information or documents which are not

                          obtainable under the laws or in the normal course of

                          theadministration of that or of the other Contracting State;

             (c)        to supply information or documents 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.

ARTICLE 27
DIPLOMATIC AND CONSULAR ACTIVITIES

             Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officials under the general rules of international law or under the provisions of special agreement.

CHAPTER VI
FINAL PROVISIONS

ARTICLE 28
ENTRY INTO FORCE

1.         This Convention shall be ratified and the instruments of ratification shall be exchanged at Bangkok as soon as possible.

2.         This Convention shall enter into force upon the exchange of the instruments of ratification and shall have effect;

             (a)        in India, in respect of income derived during the “previous

                          years” beginning on or after the first day of January of the

                          calendar year next following the calendar year in which the

                          instruments of ratification are exchanged;

             (b)        in Thailand, in respect of income derived during “tax years”

                          or “accounting periods” beginning on or after the first day of

                          January of the calendar year next following the calendar year

                          in which the instruments of ratification are exchanged.

ARTICLE 29
TERMINATION

             This Convention shall remain in force indefinitely but either Contracting State may terminate the Convention, through diplomatic channels, by giving to the other Contracting State, written notice of termination on or before June 30th of any calendar year after the expiration of five years from the year in which the Convention entered into force. In such event, the Convention shall cease to have effect:

             (a)        in India, in respect of income derived during the “previous

                          years” beginning on or after the first day of January of the

                          calendar year next following the calendar year in which the

                          notice is given;

             (b)        in Thailand, in respect of income derived during “tax years”

                          or “accounting periods” beginning on or after the first day of

                          January of the calendar year next following the calendar year

                          in which the notice is given.

             IN WITHNESS WHEREOF the undersigned, duly authorised thereto by their respective Governments, have signed this Convention.

             DONE at New Delhi on this 22 nd day of March, One Thousand Nine Hundred and Eighty-Five, in six originals, two each in the Thai, Hindi, and English languages, all texts being equally authentic, except in case of divergence when the English text shall prevail.

Memorandum of Understanding with respect to the Double taxation Convention between the Kingdom of Thailand and the Republic of India

It is understood that:

1.         The term “tax” as defined in paragraph 1 (d) of Article 3 of Convention shall be interpreted not to include any amount which is payable in respect of any default or omission in relation to the taxes to which this Convention applies or which represents a penalty imposed relating to these taxes.

2.         Nothing in paragraph 5 of Article 10 of this Convention shall be construed so as to prevent Thailand from imposing tax on the disposal of profits (not in the form of dividends) in accordance with Section 70 bis of the Thai Revenue Code.

3.         With reference to paragraph 2 of Article 26, any agreement reached by the two competent authorities shall be implemented notwithstanding any time limits in the domestic laws of the Contracting State  provided that the implementation of such agreement will beneficial to the tax-payer concerned.

4.         In case Thailand grants reduction from tax of an amount more than 50 per cent thereof on income derived from the operation of ships in international traffic by a resident of any country, paragraph 2 of Article 8 of the Convention shall be reconsidered with a view to granting, on the basis of reciprocity, the same reduction from tax on such income of shipping companies which are residents of India.

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