On 1 February 2018, the Finance Minister presented the Union Budget 2018. The budget includes proposals to clarify rules for implementation of the country-by-country (CbC) reporting requirements.
Consequently, the due date for submits the CbC report is extended to 12 months after the end of the reporting year. The due date would therefore vary for each situation depending on the taxpayer’s accounting year. For the financial year 2016/17, the due date has already been extended to March 31, 2018.
The rules provided in the budget are also clarified for Indian entities having a foreign parent company when the foreign parent company is not required to file a CbC report. Similarly, the due date for furnishing the CbCR by the Alternate Reporting Entity (ARE) has been aligned with its local jurisdiction timelines.
The amendments would be effective retroactively from 1 April 2017.
