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In one of the interviews I was asked the below question. Does the IAAS communicate with PAAS services over the vnet ?

How IAAS communicate with PAAS services

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Does the IAAS communicate with PAAS services over the vnet ?

Yes, Within the Same Virtual Networks, across the virtual networks via peering or via VPN/Express Route -- Azure PaaS and IaaS services can communicate with each other.

How IAAS communicate with PAAS services

As long as the services are reachable via an IP/Port, there are numerous methods to communicate /connect like VNet, Express Route, Peering service, Azure DNS, Bastion, etc.

Refer to the Azure Networking Services for more information.