The Central Board of Direct Taxes (CBDT) published a draft guideline for framing Rules in respect of Country-by-Country reporting and furnishing of master file on 6 October 2017. The comments and suggestions on the draft rules can be submitted by 16 October 2017.
The draft guidelines are proposed following issues:
- Rule 10D provides for information and documents to be kept and maintained under the provision of sub-section (1) and to be furnished in terms of sub-section (4) of Section 92D.
- Rule 10DB says about the furnishing of a report in respect of an International Group.
- The draft notification provides that Indian constituent entities of MNE groups meeting an INR 5 billion annual revenue threshold in the previous year.
- Every constituent entity in India, if its parent entity is not resident in India, must provide notification to the Director-general of Income-tax (Risk Assessment) in Form 3CEBB. This notification would have to be provided 60 days prior to the date of filing the CbC report.
- Every parent entity or alternate reporting entity resident in India must furnish the CbC report in Form 3CEBC annually, by the tax return deadline. The information to be provided on Form 3CEBC would be similar to the information required under the OECD recommendations.
- Non-parent constituent entities are required to submit a CbC report by the tax return deadline if the jurisdiction of residence of the parent entity does not have a CbC exchange agreement with India or there is a systemic failure for exchange.
- If there are more than one constituent entities of an international group, resident in India, that entity would be required to file the CbC report in Form 3CEBD with the tax authority by the required due date.
- The proposal also includes guidelines for maintenance of a Master file, if certain requirements are satisfied.
