Relevance Of OECD Guidelines: Department’s View

Office of the Director of Income-tax, International taxation
New Delhi 110002

F. No. DIT (Intl Tax) RTI/2007-08/300 dated 29.06.2007

Name of the Applicant: Sh. M. V. Padmanabha
Address of the Applicant: No. 457, I Main Road, K. R. Puram, Bangalore 560036
Date of receipt of application in this office: 01.06.2007

Date of order/reply: 29.06.2007

Reply under the Right to Information Act, 2005

Vide application dated 11.04.2007, Shri. M. V. Padmanabha, the applicant addressed to the Deputy Secretary (UTI & JPC), Ministry of Finance, North Block, New delhi 110001 has sought the certain details / information. The requisite information /details are as under:

S. No.

Request For

Reply / information furnished


(a) Whether India is a member of Organization for Economic Co-operation and Development (OECD) and

(b) Whether India has entered into any treaty or MOU agreement  or any other nature of document which binds India in the tax treatment of Indian companies in India based on the OECD guidelines;

(c) If so, kindly issue a copy of the same

(a) No, India is not a member of OECD

(b) No

(c) Not applicable


Whether any circular, instructions or advice given to the assessee or Assessing Officer / Transfer Pricing Officer making OECD guidelines of any nature binding in the tax proceedings in India to Indian Companies / Assessee, if so a copy of the same may be given



Whether any advice, affirmative or negative, regarding the persuasive effect of OECD guidelines in determining the income taxable in India more particularly on the issue of transactions between Associated  Enterprises, if so copy of the same may be given



Is it open to the assessee to request Assessing Officer /Transfer pricing Officer to assessee based on Indian Income Tax Act, Rules and Circulars determining Transfer pricing Adjustment without any reference to OECD guidelines. 

Assessing Officers / Transfer pricing Oficers are to determine / assess on the basis of Indian Income Tax Act, Rules and Circulars on the subject.

In case you wish to file an appeal against the order, you may do so before the Appellate Authority, DGIT (International Taxation), Room No. 309, Drum Shaped Building, IP Estate, New delhi 110002.

K. Ramlingam,
Director of Income Tax,
International Taxation
New Delhi

Note: In Credit Lyyonais 94 ITD 401 (Mum) it was held that the OECD had made immense contribution in developing “International Tax Language” and that its’ Commentary was authoritative and important in interpreting tax treaties. In Automated Securities Clearance 118 TTJ (Pune) 619 it was considered as to how a conflict between the OECD Commentary and the US Technical Explanation should be resolved.

2 comments on “Relevance Of OECD Guidelines: Department’s View
  1. vswami says:

    Some of the answers provided do not reflect the reality; for , if one is not mistaken, there are any number of court decisions, not just the ITAT cases referred in the NOTE (editorial), which go to bluntly conter such answers.

  2. Anandhi says:

    why is this is published now? is it reply to the release of new OECD TPG recently??!

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