Section 1 - Transfer Pricing
- EVOLUTION OF TRANSFER PRICING IN INDIA – TRANSFER PRICING CA FINAL
- WHAT IS TRANSFER PRICING – CA Final Direct and International Tax
- EVOLUTION OF TRANSFER PRICING IN INDIA [PRE-2001 ERA] – SECTION 92 – TRANSFER PRICING CA FINAL
- MEANING OF TRANSFER PRICE
- TRANSFER PRICING METHODS
- Comparable Uncontrolled Price Method
- EVOLUTION OF TRANSFER PRICING IN INDIA [PRE-2001 ERA] – REPLACEMENT OF EXISTING LAW
- COMPUTATION OF INCOME HAVING REGARD TO THE ALP – SECTION 92 – APPLICABILITY OF ARM’S LENGTH PRINCIPLE
- COMPUTATION OF INCOME HAVING REGARD TO THE ALP – SECTION 92 – BASE EROSION CONCEPT
- ASSOCIATED ENTERPRISES – SECTION 92A (1)
- INTERNATIONAL TRANSACTION [SECTION 92B]
- ARMS’ LENGTH PRINCIPLE
- COMPUTATION OF ARM’S LENGTH PRICE [SECTION 92C]
- SELECTION OF TESTED PARTY
- SELECTION OF PROFIT LEVEL INDICATOR
- SELECTION OF MOST APPROPRIATE METHOD – RULE 10C
- DATA TO BE USED FOR ANALYZING COMPARABILITY OF AN UNCONTROLLED TRANSACTION WITH AN INTERNATIONAL TRANSACTION
- ARITHMETIC MEAN – WHEN MORE THAN ONE PRICE IS DETERMINED
- APPLICABILITY OF RANGE CONCEPT – WHEN MORE THAN ONE PRICE IS DETERMINED
- FUNCTIONS, ASSETS AND RISK (FAR) ANALYSIS
- DOCUMENTATIONS AND COMPLIANCES – DOCUMENTATION REQUIREMENT UNDER THE INCOME-TAX ACT, 1961
- FUNCTIONAL ANALYSIS
- ECONOMIC ANALYSIS
- PENALTY FOR UNDER-REPORTING OF INCOME – SECTION 270A
- PENALTY FOR MISREPORTING OF INCOME – SECTION 270A
- PENALTY FOR FAILURE TO KEEP AND MAINTAIN INFORMATION AND DOCUMENTATION – SECTION 271AA
- PENALTY FOR FAILURE TO FURNISH INFORMATION OR DOCUMENT U/S 92D – SECTION 271G
- COUNTRY BY COUNTRY REPORTING
- Domestic Transfer Pricing
- SAFE HARBOUR RULES FOR INTERNATIONAL TRANSACTION
- TRANSFER PRICING ASSESSMENT procedure in India
- APPEAL PROCEDURE
- POWER OF ASSESSING OFFICER TO DETERMINE THE ARM’S LENGTH PRICE
- REFERENCE TO TRANSFER PRICING OFFICER [SECTION 92CA]
- RECTIFICATION OF TPO ORDER
- POWERS OF TPO
- SECONDARY ADJUSTMENT – SECTION 92CE
- DISPUTE RESOLUTION MECHANISM UNDER TRANSFER PRICING
- ADVANCE PRICING AGREEMENT
- MUTUAL AGREEMENT PROCEDURE
- MISCELLANEOUS TRANSFER PRICING PROVISIONS
Section 2 - Non-Resident Taxation
- CHARGE OF INCOME TAX AND RESIDENTIAL STATUS
- RESIDENTIAL STATUS OF A COMPANY
- SCOPE OF TOTAL INCOME AND INCOME DEEMED TO BE RECEIVED IN INDIA AND ACCRUE OR ARISE IN INDIA
- TAXABILITY OF OFFSHORE FUNDS AND INCOME THROUGH OR FROM ANY PROPERTY, ASSET OR SOURCE OF INCOME IN INDIA
- SALARY PAYABLE BY GOVERNMENT FOR SERVICES RENDERED OVERSEAS AND DIVIDEND PAID BY AN INDIAN COMPANY OUTSIDE INDIA
- EXEMPT INCOME OF NON-RESIDENTS
- INTEREST AND ROYALTY AND FEES FOR TECHNICAL SERVICES
- PRESUMPTIVE TAXATION FOR NON-RESIDENTS – introduction
- Capital Gains tax provisions – CA Final Direct and International Tax Notes
- WITHHOLDING TAX FROM PAYMENTS TO NON – RESIDENTS
Section 4 - Double Taxation Relief
- CONCEPT OF DOUBLE TAXATION AND WHY IT ARISES AND TYPES OF DOUBLE TAXATION RELIEF
- COUNTRIES WITH WHICH NO AGREEMENT EXISTS UNILATERAL AGREEMENTS – SECTION 91
- TREATY PROVISION TO OVERRIDE INCOME TAX ACT AND MODE OF COMPUTATION OF INCOME OF NON-RESIDENTS
- Foreign Tax Credit in India – Rule 128 of the Income Tax Rules 1962 – CA Final International Tax Notes
Section 5 - Black Money
- KEY FEATURES OF THE BLACK MONEY ACT
- APPLICABILITY AND COVERAGE OF THE BLACK MONEY ACT – SECTION 1
- BASIS OF CHARGE – SECTION 3
- DEFINITION OF ASSESSEE – SECTION 2(2)
- APPLICABILITY OF BLACK MONEY ACT TO PERSONS RESIDENT IN INDIA
- DEFINITION OF UNDISCLOSED ASSET LOCATED OUTSIDE INDIA – SECTION 2(11)
- RELEVANT PREVIOUS YEAR FOR CHARGEABILITY TO TAX – UNDISCLOSED ASSET LOCATED OUTSIDE INDIA – SECTION 3
- VALUATION OF AN UNDISCLOSED ASSET LOCATED OUTSIDE INDIA – SECTION 3(2)
- TRANSFER OF ASSETS BEFORE VALUATION DATE
- VALUATION IN CASE OF ACQUISITION OF ASSET OUT OF CONSIDERATION OF OLD ASSET OR BANK ACCOUNT – RULE 3(3)
- MEANING OF ESTABLISHED SECURITIES MARKET – EXPLANATION 1 TO RULE 3
- MEANINGFUL ANNUAL VALUE OF SHARES TRADED ON THE EXCHANGE – EXPLANATION 1 TO RULE 3
- MEANING OF QUOTED SHARE OR SECURITY – EXPLANATION 1 TO RULE 3
- MEANING OF UNQUOTED SHARE AND SECURITY – EXPLANATION 1 TO RULE 3
- SCOPE OF TOTAL UNDISCLOSED FOREIGN INCOME AND ASSET – SECTION 4(1)
- VARIATION MADE IN FOREIGN INCOME DURING ASSESSMENT OR REASSESSMENT- SECTION 4(2)
- NON-INCLUSION OF UNDISCLOSED FOREIGN INCOME AND ASSET IN INCOME COMPUTED UNDER INCOME-TAX ACT- SECTION 4(3)
- NO DISALLOWANCE AND SET-OFF FOR COMPUTATION OF TOTAL UNDISCLOSED FOREIGN INCOME AND ASSET – SECTION 5
- DEDUCTION FROM VALUE OF UNDISCLOSED ASSET OUTSIDE INDIA
- DEDUCTION FROM VALUE OF IMMOVABLE PROPERTY OUTSIDE INDIA
- TAX AUTHORITIES UNDER THE BLACK MONEY ACT – SECTION 6
- CHANGE OF TAX AUTHORITY – SECTION 7
- POWERS OF TAX AUTHORITY
- PROCEEDINGS BEFORE TAX AUTHORITIES TO BE JUDICIAL PROCEEDINGS – SECTION 9(1)
- ASSESSMENT OF FOREIGN INCOME AND ASSETS – SECTION 10
- TIME LIMIT FOR COMPLETION OF ASSESSMENT AND REASSESSMENT – SECTION 11(1)/(2)
- NON-APPLICABILITY OF THE 2-YEAR TIME LIMIT FOR COMPLETION OF ASSESSMENT- SECTION 11(3)
- EXCLUSIONS IN COMPUTING LIMITATION PERIOD OF ASSESSMENT/REASSESSMENT – EXPLANATION 1 TO SECTION 11
- RECTIFICATION OF MISTAKE – SECTION 12
- NOTICE OF DEMAND – SECTION 13
- DIRECT ASSESSMENT OR RECOVERY NOT BARRED – [SECTION 14]
- APPEALS TO COMMISSIONER (APPEALS) – SECTION 15
- APPEAL TO APPELLATE TRIBUNAL – SECTION 18
- APPEAL TO APPELLATE TRIBUNAL – SECTION 18
- APPEAL TO HIGH COURT – SECTION 19
- APPEAL TO SUPREME COURT – SECTION 21
- REVISION OF ORDERS PREJUDICIAL TO REVENUE – SECTION 23
- REVISION OF OTHER ORDERS – SECTION 24
- PAYMENT OF TAX DURING PENDING APPEAL
- RECOVERY OF TAX DUES BY ASSESSING OFFICER -SECTION 30
- RECOVERY OF TAX DUES BY TAX RECOVERY OFFICER – SECTION 31
- MODES OF RECOVERY OF TAX DUES – SECTION 32
- TAX RECOVERY OFFICER BY WHOM RECOVERY OF TAX DUES IS TO BE EFFECTED – SECTION 33
- RECOVERY OF TAX DUES IN CASE OF A COMPANY IN LIQUIDATION – SECTION 34
- LIABILITY OF MANAGER OF A COMPANY – SECTION 35
- JOINT AND SEVERAL LIABILITY OF PARTICIPANTS -SECTION 36
- RECOVERY THROUGH STATE GOVERNMENT- SECTION 37
- RECOVERY OF TAX DUES IN PURSUANCE OF DTAA OR TAX INFORMATION EXCHANGE AGREEMENT- SECTION 38
- RECOVERY BY SUIT OR UNDER OTHER LAW NOT AFFECTED – SECTION 39
- INTEREST FOR DEFAULT IN FURNISHING RETURN AND PAYMENT OR DEFERMENT OF ADVANCE TAX – SECTION 40
- PENALTY IN RELATION TO UNDISCLOSED FOREIGN INCOME AND ASSET – SECTION 41
- PENALTY FOR FAILURE TO FURNISH RETURN FOR FOREIGN INCOME AND ASSET – SECTION 42
- PENALTY FOR FAILURE TO FURNISH INFORMATION OF FOREIGN ASSET OR FOREIGN INCOME IN RETURN OF INCOME – SECTION 43
- DETERMINATION OF VALUE OF FOREIGN BANK ACCOUNT IN INR – EXPLANATION TO SECTION 42
- PENALTY FOR DEFAULT IN PAYMENT OF TAX ARREAR -SECTIONS 44
- PENALTY FOR OTHER DEFAULTS – SECTION 45
- PROCEDURE FOR IMPOSING PENALTY – SECTION 46
- PRIOR APPROVAL OF JOINT COMMISSIONER FOR IMPOSING PENALTY – SECTION 46
- BAR OF LIMITATION FOR IMPOSING PENALTY – SECTION 47
- OFFENCES AND PROSECUTION – CHAPTER V
- AGREEMENT WITH FOREIGN COUNTRIES OR SPECIFIED TERRITORIES – SECTION 73
- MODES OF SERVING NOTICE – SECTION 74
- ADDRESS FOR COMMUNICATION OF NOTICE BY POST OR APPROVED COURIER SERVICE – SECTION 74 READ WITH RULE 14
- E-MAIL ADDRESS FOR COMMUNICATION OF NOTICE – SECTION 74 READ WITH RULE 14
- AUTHENTICATION OF NOTICES AND OTHER DOCUMENTS – SECTION 75
- NOTICE DEEMED TO BE VALID IN CERTAIN CIRCUMSTANCES – SECTION 76
- APPEARANCE BY APPROVED VALUER IN CERTAIN MATTERS OR AUTHORIZED REPRESENTATIVE – SECTIONS 77 & 78
- MEANING OF AUTHORISED REPRESENTATIVE – SECTION 78
- ROUNDING OFF OF INCOME, VALUE OF ASSET AND TAX – SECTION 79
- CONGNIZANCE OF OFFENCE – SECTION 80
- ASSESSMENT NOT TO BE INVALID ON CERTAIN GROUNDS – SECTION 81
- BAR OF SUITS IN CIVIL COURTS – SECTION 82
- INCOME-TAX PAPERS TO BE AVAILABLE FOR THE PURPOSES OF THE BLACK MONEY ACT – SECTION 83
- APPLICATION OF PROVISIONS OF THE INCOME-TAX ACT – SECTION 84
- AMENDMENT OF PREVENTION OF MONEY-LAUNDERING ACT, 2002 – SECTION 88
Section 6 - Overview of Double Tax Convention
Section 7 - Application and interpretation of tax treaties
- ORIGINATION OF INTERNATIONAL TAX LAW AND DOUBLE TAXATION AND CONNECTING FACTORS
- DEFINITION OF TREATY , DOUBLE TAXATION AVOIDANCE AGREEMENT
- DIRECTIVE PRINCIPLES FOR INTERNATIONAL AGREEMENTS UNDER INDIAN CONSTITUTION AND ROLE OF VIENNA CONVENTION IN APPLICATION AND INTERPRETATION OF TAX TREATIES
- INDIAN JUDICIARY ON PRINCIPLES OF INTERPRETATION IN VIENNA CONVENTION AND ARTICLE 33: INTERPRETATION OF TREATIES AUTHENTICATED IN TWO OR MORE LANGUAGES INDIA AND TAX INFORMATION AND EXCHANGE AGREEMENT (TIEA)
- INTERPRETATION OF TREATIES – MONIST VIEW , DUALISTIC VIEW AND TREATY OVER DOMESTIC LAW
- INTERNATIONAL TAX CONFLICTS AND DOUBLE TAXATION INTRODUCTION AND BASIC PRINCIPLES OF INTREPRETATION OF A TREATY
- CUSTOMARY INTERNATIONAL LAW OF TREATY INTERPRETATION – OBJECTIVE INTERPRETATION , SUBJECTIVE INTERPRETATION AND PURPOSIVE INTERPRETATION
- CUSTOMARY LAW OF TREATY INTERPRETATION PRINCIPLE OF EFFECTIVENESS AND CONTEMPORANEA EXPOSITIO AND LIBERAL CONSTRUCTION
- EXTRINSIC AIDS TO INTERPRETATION OF A TAX TREATY
- OBJECTIVES OF TAX TREATIES ,OBJECTIVE OF DTAAs AND PURPOSE OF ENTERING INTO A DTAA INTO INDIAN CONTEXT – SECTION – 90(1) ?
Section 8A - Anti-Avoidance Measures
Section 8B - BEPS
Section 9 - E-Commerce
- HOW BUSINESS IS TRANSACTED THROUGH E-COMMERCE AND PREVALENT BUSINESS FORMS IN VARIOUS SEGMENTS OF DIGITAL ECONOMY?
- GROWTH OF E-COMMERCE AND TAXATION ISSUES ON E-COMMERCE ?
- PERMANENT ESTABLISHMENT IN E-COMMERCE AND DETERMINATION OF NATURE OF INCOME IN E-COMMERCE TRANSACTIONS?
- OECD RECOMMENDATIONS UNDER ACTION PLAN 1 OF BEPS TO TACKLE TAXATION ISSUES OF E-COMMERCE AND INTRODUCTION OF NEW CHAPTER OF EQUALIZATION LEVY ?
- WHO IS LIABLE TO DEDUCT EQUALISATION LEVY AND WHOSE INCOME IS LIABLE FOR DEDUCTION OF EQUALISATION LEVY ?
Article on CA Students
10 things to Believe - As you appear for May 2018 Examinations
MCQ - CA Final
COUNTRY BY COUNTRY REPORTING
OBJECTIVES OF COUNTRY BY COUNTRY REPORTING
The key objectives of the CbCR are as under: –
- The Report requires taxpayers to articulate consistent transfer pricing position, across the globe.
- The Report will provide tax administration with useful information to assess TP risk.
- It will facilitate tax administrations to determine about where their resources can most effectively be deployed, and in the event of audit, provide information to commence and targeted audit enquiries.
- Section 92D of the IT Act requires maintenance of prescribed information and documents, relating to the international transactions and specified domestic transactions.
- The OECD report on Action Plan 13 of BEPS, provides for revised standards for transfer pricing documentation and a template for country-by-country reporting of income, earnings, taxes paid and certain measure of economic activity. It is recommended in the BEPS report, that the countries should adopt a standardized approach to transfer pricing documentation.
- Country-by-Country reporting mandates a three tiered structure of documentation at the group and local level.
THREE TIER STRUCTURE OF DOCUMENTATION
Three-tiered structure of documentation as mandated by BEPS consists of : –
- a MASTER FILE containing standardized information relevant for all multinational enterprises (MNE) group members. It provides high level overview of group’s global business operations and global transfer pricing policies.
- a LOCAL FILE referring specifically to material transactions of the local taxpayer; and
- a COUNTRY-BY-COUNTRY report containing certain information relating to the global allocation of the MNE’s income and taxes paid, together with certain indicators of the location of economic activity within the MNE group.
MASTER FILE AND COUNTRY-BY-COUNTRY REPORTING
- Section 286 of the IT Act requires Multinational Enterprises (MNEs) and Indian Multinational Enterprises to report annually CbC report for financial year 201617 and onwards.
- Rule 10DA lays down the procedure in relation to filing of Master file; and
- Rule 10DB lays down the procedure CbCR
International group shall maintain information and documents in Master file when –
- Consolidated group revenue of the international group is more than Rs 500 crores (as reflected in Consolidated Financial Statements of the international group), and
- The aggregate value of international transaction –
- Is more than Rs. 50 crores during the accounting year as per books of account, or
- Is more than Rs. 10 crores in respect of purchase, sale, transfer, lease or use of intangible property.
MONETARY THRESHOLD FOR MAINTENANCE OF MASTER FILE
MASTER FILE [RULE 10DA]
a) Form 3CEAA for Master file :
The information of international group shall be furnished in master file in Form 3CEAA. Such form consists of two parts –
- Part A of Form 3CEAA : – It needs to be filed by every constituent entity of international group even if dual-threshold of group revenue (i.e., Rs 500 crores) and international transaction (i.e., Rs 50/10 crores) is not satisfied.
- Part B of Form 3CEAA : – It needs to be filed by constituent entity which satisfies the aforesaid condition of dual-threshold.
b) Form 3CEAB for intimation :
Where international group has more than one constituent entities resident in India, it should designate one of the entity for filing of master file in Form 3CEAA. In such case, Form 3CEAA has to be filed by such designated constituent entity and intimation of same should be filed in Form 3CEAB.
MANNER OF FILING OF MASTER FILE
SUBJECT TO PROVISION OF FINANCE BILL 2018
Key information and documents required for Master File includes –
- Description of function, asset and risk analysis (“FAR”) of all the constituent entities that contribute atleast 10% of the revenue or assets or profits of the group.
- Description of financial arrangement of the group including names and address of top ten unrelated lenders.
- List of all entities of international group which are engaged in development and management of intangible property.
COUNTRY-BY-COUNTRY REPORT – RULE 10DB
As per Rule 10DB, where the consolidated group revenue of international group exceeds Rs 5500 crores for filing of Country-by-Country report.
Indian entity, having a parent entity resident outside India, will be required to provide information on or before the prescribed date in Form 3CEAC :-
- Whether it is an alternate reporting entity of the international group; or
- The details of the parent entity or the alternate reporting entity, if any of the international group, and the country of territory of which the said entities are resident.
MANNER AND DUE DATE OF FILING OF COUNTRY-BY-COUNTRY REPORT
- A resident constituent entity of an International group shall be required to furnish CbC report to the prescribed authority, if the parent entity of the group is resident :
- In a country with which India does not have an arrangement for exchange of the CbC report; or
- Such country is not exchanging information with India even though there is an agreement (i.e. existence of systematic failure); and
- This fact has been intimated to the entity by the prescribed authority.
2. In case where more than one Indian resident entities are constituents of international group, the report shall be furnished by the entity, which is nominated by the international group (provided information of such nomination has been conveyed to prescribed authority in writing on behalf of the group).
- An entity in India is not required to furnish CbC report, if following conditions are satisfied:
- an alternate reporting entity of the international group has furnished report with the tax authority of the country or territory in which such entity is resident on or before the date specified;
- the report is required to be furnished under the law for the time being in force in the said country or territory;
- the said country or territory has entered into an agreement with India providing for exchange of the CbC report;
- the prescribed authority has not conveyed to entity of the group that is resident in India, any systemic failure in respect of the said country or territory;
- the alternate reporting entity informed in writing to the said country or territory on behalf of the international group; and
- the prescribed authority has been informed by the entities in India
NON-COMPLIANCE WITH CBC PROVISIONS
PENALTY FOR NON-FURNISHING OF REPORT : –
Where an entity which is required to furnish report under CbC provisions, fails to do so within the prescribed time, penalty shall be payable –
- At Rs. 5,000 per day where period of default is less than a month, or
- At Rs. 15,000 per day where default period exceeds a month, or
- At Rs. 50,000 per day in case of continuing default even after service of order levying penalty.
PENALTY FOR FAILURE TO PRODUCE INFORMATION AND DOCUMENTS: –
In case information called by prescribed authority for determination of accuracy of CbC report is not submitted within the time specified in the notice, reporting entity shall be penalized by Rs 5,000/- per day after expiry of the period specified in such notice.
Further, for any default that continues even after service of order levying penalty, then penalty for default beyond date of service of penalty order shall be Rs 50,000/- per day
PENALTY FOR FILING OF INACCURATE INFORMATION IN CBC REPORT
If an entity has provided any inaccurate information in the CbC report, penalty would be Rs. 500,000/- if
- The entity has the knowledge of the inaccuracy at the time of furnishing the report but does not inform the prescribed authority; or
- The entity discovers the inaccuracy after the report is furnished and fails to inform the prescribed authority and furnish correct report within a period of 15 days of such discovery; or
- The entity furnishes inaccurate information or document in response to notice of the prescribed authority.
EXEMPTION FROM PENALTY : –
Section 273B provides for non-levy of penalty u/s 271GB if the assessee proves that there was reasonable cause for such failure.
MAINTENANCE AND FURNISHING OF MASTER FILE
Penalty for non-furnishing of information and documents to the prescribed authority u/s 286(1) shall be Rs. 5,00,000
DEFINITION OF “INTERNATIONAL GROUP”
It means any group that includes,
- two or more enterprises which are resident of different countries or territories; or
- an enterprise, being a resident of one country or territory, which carries on any business through a permanent establishment in other countries or territories;
DEFINITION OF GROUP
“Group” includes a parent entity and all the entities in respect of which, for the reason of ownership or control, a consolidated financial statement for financial reporting purposes,
- is required to be prepared under any law for the time being in force, or as per the accounting standards of the country or territory of which the parent entity is resident; or
- would have been required to be prepared had the equity shares of any of the enterprises were to be listed on a stock exchange in the country or territory of which the parent entity is resident.
DEFINITION OF CONSTITUENT ENTITY
“Constituent Entity” means,
- any separate entity of an international group that is included in the consolidated financial statement of the said group for financial reporting purposes, or may be so included for the said purpose, if the equity share of any entity of the international group were to be listed on a stock exchange;
- any such entity that is excluded from the consolidated financial statement of the international group solely on the basis of size or materiality; or
- any permanent establishment of any separate business entity of the international group included in clause (i)* or clause (ii)*, if such business unit prepares a separate financial statement for such permanent establishment for financial reporting, regulatory, tax reporting or internal management control purposes
“Parent Entity” means a constituent entity, of an international group holding, directly or indirectly, an interest in one or more of the other constituent entities of the international group, such that,
- it is required to prepare a consolidated financial statement under any law for the time being in force or the accounting standards of the country or territory of which the entity is resident; or
- it would have been required to prepare a consolidated financial statement had the equity shares of any of the enterprises were listed on a stock exchange,
and, there is no other constituent entity of such group which, due to ownership of any interest, directly or indirectly, in the first mentioned constituent entity, is required to prepare a consolidated financial statement, under the circumstances referred to in clause (i) or clause (ii), that includes the separate financial statement of the first mentioned constituent entity
“Reporting Entity” means
- the constituent entity including
• the parent entity, or
• the alternate reporting entity,
- that is required to furnish a report as per CbC reporting provisions.
DEFINITION OF ALTERNATE REPORTING ENTITY
“Alternate Reporting Entity” means
- any constituent entity of the international group
- that has been designated by such group, in the place of the parent entity,
- to furnish the report of the nature referred to in sub-section (2)
- in the country or territory in which the said constituent entity is resident on behalf of such group;
DEFINITION OF SYSTEMATIC FAILURE
“Systemic Failure” with respect to a country or territory means that the country or territory has an agreement with India providing for exchange of report of the nature referred to in sub-section (2), but
- in violation of the said agreement, it has suspended automatic exchange; or
- has persistently failed to automatically provide to India the report in its possession in respect of any international group having a constituent entity resident in India.
DEFINITION OF ACCOUNTING YEAR
“Accounting Year“ means,
- a previous year, in a case where the parent entity or alternate reporting entity is resident in India; or
- an annual accounting period, with respect to which the parent entity of the international group prepares its financial statements under any law for the time being in force or the applicable accounting standards of the country or territory of which such entity is resident, in any other case.
DEFINITION OF AGREEMENT
- an agreement referred to in section 90(1) or section 90A(1); or
- any agreement as may be notified by the Central Government in this behalf.
DEFINITION OF CONSOLIDATED FINANCIAL STATEMENT
“Consolidated Financial Statement” means the financial statement of an international group in which the assets, liabilities, income, expenses and cash flows of the parent entity and the constituent entities are presented as those of a single economic entity.
COUNTRY BY COUNTRY REPORTING
TOPICS COVERED: –
- Objective of Country by Country reporting (CbCR).
- Background of CbCR
- Applicability of CbCR
- Safeguards to avoid Duplicity
- Non-compliance with CbCR provisions
- Definitions of various terms used in this chapter