TMI BlogRole of Vienna Convention in Application and Interpretation of Tax TreatiesX X X X Extracts X X X X X X X X Extracts X X X X ..... na Convention of the Law of Treaties, 1969 provides that a treaty shall be interpreted in good faith in accordance with the ordinary meaning to be given to the terms of the treaty in their context and in the light of its object and purpose. While India is not a party to the Vienna Convention, it contains many principles of customary international law, and the principle of interpretation, of Article 31 of the Vienna Convention, provides a broad guideline as to what could be an appropriate manner of interpreting a treaty in the Indian context also . Therefore, it would be worthy to understand some of the Articles of the Vienna Convention of Law of Treaties which would help appreciate the manner of application and interpretation of tax tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ory. 31 General Rule of Interpretation A treaty shall be interpreted in good faith in accordance with the ordinary meaning to be given to the terms thereof in the context and in the light of its object and purpose. This is a basic principle. It states that treaties should be interpreted by first giving the ordinary meaning to the language. It is only if the ordinary meaning is ambiguous, or leads to illogical results, that the purpose may be considered. The context for the purpose of interpretation of a treaty shall comprise, in addition to the text, including its preamble and annexure Any agreement relating to the treaty which was made between all the par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a treaty has been authenticated in two or more languages, the text is equally authoritative in each language, unless the treaty provides or the parties agree that, in case of divergence, a particular text shall prevail. A version of the treaty in a language other than the one of those in which the text was authenticated shall be considered an authentic text only if the treaty so provides or the parties so agree. The terms of the treaty are presumed to have the same meaning in each authentic text. Except where a particular text prevails in accordance with paragraph 1, when a comparison of the authentic texts discloses a difference in meaning which the application of Articles 31 and 32 does not remove, the meaning which be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecially affected by the breach to invoke it as a ground for suspending the operation of the treaty in whole or in part in the relations between itself and the defaulting State; any party other than the defaulting State to invoke the breach as a ground for suspending the operation of the treaty in whole or in part with respect to itself if the treaty is of such a character that a material breach of its provisions by one party radically changes the position of every other party with respect to further performance of its obligations under the treaty. A material breach of a treaty, for the purposes of this Article, consists in: a repudiation of the treaty not sanctioned by the Convention; or the violation of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the treaty; and the effect of the change is radically to transform the extent of obligations still to be performed under the treaty. A fundamental change of circumstances may not be invoked as a ground for terminating or withdrawing from a treaty if the treaty establishes a boundary; or if the fundamental change is the result of a breach by the party invoking it either of an obligation under the treaty or of any other international obligation owed to any other party to the treaty. If, under the foregoing paragraphs, a party may invoke a fundamental change of circumstances as a ground for terminating or withdrawing from a treaty it may also invoke the change as a ground for s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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