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The Special Additional Excise Duty (SAED) imposed by the Government of India on domestically produced petroleum products has been revised, following the earlier revision on July 20:
The relevant notifications No. 21 & 22 /2022, which shall be effective August 03, 2022, can be accessed here.
The OECD is seeking comments from stakeholders on the Progress Report on Amount A, which represents the taxing right for market jursidictions under Pillar One of the Two-Pillar Solution conceptualised by the OECD/ G20 Inclusive Framework on BEPS. Comments are sought (by August 19, 2022) with respect to the rules in the Progress Report document, which can be accessed here.
CBDT has authorised officers of the Directorate of Income-tax (Intelligence and Criminal Investigation) as ‘Prescribed Authority’ for the purpose of e-Verification Scheme, 2021. The prescribed officers are Director General of Income-tax, Directors of Income-tax, Additional Directors of Income-tax, Joint Directors of Income-tax, Deputy Directors of Income-tax, Assistant Directors of Income-tax, Income Tax Officers and Inspectors of Income-tax.
The additonal duties levied earlier this month by the Indian Government on exports of petroleum products have now been reduced in view of falling global crude oil prices. The relevant Notification Nos. 17/2022-20/2022 dated July 19, 2022 issued by CBIC to give effect to reductions in these levies can be accessed here.
As per the OECD Secretary-General’s Tax Report to G20 Finance Ministers and Central Bank Governors, members of the OECD Inclusive Framework on BEPS have agreed on a revised timeline of mid-2023 (for entry into force in 2024) for implementation of the multilateral convention under Pillar One. Meanwhile, the Implementation Framework for Pillar Two is likely to be released later this year. The Secretary-General’s report can be accessed here and the progress report here.
Last month USISPF, along with our knowledge partner Deloitte India conducted an interactive session to discuss the recent trends in APA and MAP in India and the US. The session provided insights on the evolution of APA and MAP program, its progress to date and way forward, both in India and the US. A summary of key discussion points which are accessible here. As next steps, we look forward to receiving feedback from our members on the following:
1. Regulatory issues and resultant challenges in APA and MAP if any
2. Your view on the outcomes under APA and MAP and how it has helped in financial planning of the group.
3. Suggestions if any on the safe harbour rules / rates with rationale and experience so far
4. Any other suggestion as appropriate
We intend to submit a detailed note to the concerned department at Ministry of Finance by the end of this month hence please share your suggestions if any by June 5th .
The Finance Ministry has announced an extension of the deadlines for e-filings of various income tax returns forms that come under the ambit of the Income-Tax Act, 1961. This comes after taxpayers had reported difficulties in the filing of these forms online. The Government had previously extended the deadlines for filing income tax returns (ITR) earlier this year so as to give taxpayers some form of relief amidst the ongoing pandemic. please refer to the circular here.
Government of India passed Taxation Laws (Amendment) Act 2021 in Parliament earlier this month offering a settlement of the retrospective cases pertaining to the 2012 legislation on the offshore indirect transfer of Indian assets. The Central Board of Direct taxes has now released the much-awaited draft rules for the legislation pertaining to the withdrawal of retrospective amendment in taxation concerning many entities. The rules are open for comments by September 4, 2021. Do share comments if any with @Shweta Kathuria by September 3, 2021
OECD releases an international framework “Multilateral Competent Authority Agreement on Automatic Exchange of Information on Income Derived through Digital Platforms which is meant to enable the jurisdictions to exchange information, even where the receiving jurisdiction has not implemented the “Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy” (Model Rules) approved by the OECD/G20 BEPS Inclusive Framework. Click here to read OECD’s Model Reporting Rules for Digital Platforms: International Exchange Framework and Optional Module for Sale of Goods.
Central Board of Direct Taxes has issued a press release on the launch of new e-filing Portal of the Income Tax Department on June 7, 2021 and non-availability of e-filing services from June 1 to June 6, 2021. Please refer to the press release here.
Finance Act 2020 introduced new provisions with effect from tax year 2020-21 to tax: (a) employer’s contributions to PF, Superannuation, NPS in excess of INR 7,50,000 in a year and (b) annual accretions on such excess contributions to be computed as per the captioned. In relation to the same, the rules for computing the annual accretion on excess contribution were notified on 5 March 20211 with effect from 1 April 2021. On the basis of inputs received from our members Forum submitted a request to discuss concerns on the rules.
The Finance Bill, 2021 was presented by the Hon’ble Finance Minister (FM) Nirmala Sitharaman on 1 February 2021. In the wake of the representations received from various stakeholders, several amendments were introduced to the Finance Bill 2021. The amendments are intended to address ambiguities arising from the wordings of proposals as contained in the Bill. Key tax amendments are as below:
The central Board of Direct taxes has clarified that foreign portfolio investors (FPIs) will continue to enjoy 5 withholding tax on debt interest income. The clarification came after a few reports said that the concessional withholding tax rate of 5 per cent on interest income of FPIs has been withdrawn. The Central Board of Direct Taxes confirmed recently that the five per cent tax rate on interest income of FPIs will see no change. Please access the press release here.
Central Board of Direct taxes has further extended last date for completion of assessments/reassessments. Please refer to the notification here.
The Central Board of Direct Taxes extends the date of filing declaration under Direct Tax Vivad se Vishwas Act, 2020 (VsV) to March 31, 2021 and extends the dates of making payment under the third and fourth columns of table under Sec. 3 of VsV to April 30, 2021 and May 1, 2021, respectively. You can access the CBDT notification here.
Central Board of Direct Taxes has clarified on the scope of ‘penalties’ of Faceless Penalty Scheme, 2021 with immediate effect. The said notification excludes penalty imposable by: (i) Investigation Wing, (ii) Directorate of Income-tax (Intelligence & Criminal Investigation), (iii) Erstwhile Director General (Risk Assessment), (iv) Prescribed authorities for specified penalties. Please access the CBDT order here.
Budget 2021 has proposed amendments in the scope and applicability of the equalization levy or the digital service tax and various other procedural changes. USISPF will share a detailed submission as post-budget feedback to the Government on such proposals.
The Central Board of Direct Taxes has notified Faceless Assessment (1stAmendment) Scheme, 2021 which seeks to amend Faceless Assessment Scheme, 2019. The amendment seeks to specify the procedure for Assessment under Faceless Assessment Scheme, 2019. Please refer to the notification here.
Foreign Tax & Tax Research Division of CBDT has circulated a Breach Protocol prepared as per the international standards and approved by Information Security Committee (ISC) to all the offices of Income Tax Department (ITD) handling information exchanged under a treaty; The Protocol shall get triggered in the event of an incident of inappropriate access, disclosure, use of confidential information, or failure to safeguard data.
CBDT has vide a recent notification relaxed the requirement of remunerating fund managers of certain offshore funds in view of amended Rule 10V for availing the special taxation regime u/s. 9A. One of the conditions of section 9A is that the remuneration payable to the fund manager shall not be less than the amount as may be prescribed by the CBDT. Earlier in May 2020, the CBDT has prescribed rules for computing the minimum amount of remuneration payable to the fund manager by the fund for the purpose of section 9A. Please access the notification here.
CBDT launches an automated dedicated e-portal on the e-filing website to receive and process complaints of tax evasion, foreign undisclosed assets as well as complaints regarding benami properties, in an initiative to bring about enhanced ease of interaction with the Department, while strengthening its resolve towards e-governance. Please refer to the press release here .
Foreign Tax & Tax Research Division of CBDT has circulated a Breach Protocol prepared as per the international standards and approved by Information Security Committee (ISC) to all the offices of Income Tax Department (ITD) handling information exchanged under a treaty; The Protocol shall get triggered in the event of an incident of inappropriate access, disclosure, use of confidential information, or failure to safeguard data. Please refer to the protocol here.
With the commencement of the monsoon session of the Parliament, the Government has introduced The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 before the Lok Sabha , which seeks to replace the Ordinance. Thus, all the provisions of the Ordinance and subsequent Central Board of Direct Taxes (CBDT) notifications/press releases issued in connection thereto are now proposed to be incorporated/codified in the 2020.
As part of the ongoing work to develop a solution to the tax challenges of the digitalisation of the economy, the OECD/G20 Inclusive Framework on BEPS is seeking public comments on the Reports on the Pillar One and Pillar Two Blueprints. Please access the reports here.
UN Committee of Experts on International Co-operation in Tax Matters (UN Committee) releases amended draft paper on New Article 12B on taxation of ‘Income from Automated Digital Services’ with commentary, revised by Drafting group based on the comments received. It also contains a short summary by the Co-Coordinators of the written and oral comments submitted by other members. Please access the paper here.
CBDT notifies amendments in Tax Audit report in Form 3CD, TP audit report in Form 3CEB, Rule 5 relating to depreciation and ITR-6 for AY 2020-21 pursuant to the newly notified concessional tax regimes under Sections 115BAA [for companies], 115BAB [for manufacturing companies , 115BAC [reduced slab rates for individuals] and 115BAD [for co-operative societies], notifies the Income-tax (22nd Amendment) Rules, 2020.; Also notifies Forms for exercise of concessional tax regimes u/s, 115BAC / 115BAD.Please access the notification here.
CBDT further extends belated /revised return filing due-date for AY 2019-20 from September 30th to November 30th. Please access the order here.
CBDT issues guidelines on applicability of TDS on E-commerce operators u/s. 194-O & TCS on sale of goods u/s. 206C(1H) applicable w.e.f. October 1st. guidelines clarifies on calculation of threshold, applicability on payment gateways, adjustment for sale return, discounts or indirect taxes and other issues. You would recall that we as a Forum had submitted draft FAQs on the TDS levy with CBDT. Some of our recommendations are considered as part of the guidelines released. Please access the guidelines here
The Prime Minister of India, Shri Narendra Modi, while launching platform for ‘Transparent Taxation – Honoring the Honest’ had said that faceless appeal under the Income-tax Act will be available across the country from 25-09-2020. Now, the Central Board of Direct Taxes (CBDT) has notified the Faceless Appeal Scheme, 2020 effective from 25-09-2020. Please access the notifications here.
Central Board of Indirect Taxes and customs issues notification extending the time limit for compliance u/s 31(7) i.e. issuing invoices in case of goods being sent or taken out of India on approval for sale or return, which falls between March 20, 2020 to October 30, 2020 to October 31, 2020. Click here for the notification.
With the commencement of the monsoon session of the Parliament, the Government has introduced The Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill, 2020 before the Lok Sabha , which seeks to replace the Ordinance. Thus, all the provisions of the Ordinance and subsequent Central Board of Direct Taxes (CBDT) notifications/press releases issued in connection thereto are now proposed to be incorporated/codified in the 2020.
On 13 August 2020, the PM launched ‘Transparent Taxation’ platform encompassing faceless assessments, faceless appeals, etc. The PM stated that the faceless assessments/appeals will have technology driven interface (e.g. in case of scrutiny assessments, there will be random selection of cases and selection will not be limited to jurisdictional Assessing Officer). Please refer to the relevant notifications here.
CBDT has released a detailed MAP guidance for the benefit of taxpayers, tax practitioners, tax authorities and CAs of India & of treaty partners. MAP guidance is presented in 4 parts – A) Introduction & Basic, B) Access & Denial of Access to MAP, C) Technical issues and D) Implementation of MAP outcomes. Please refer to the guidance here.
CBDT inserts new Rule 114AAB notifying class or classes of persons to whom provisions of Sec. 139A for mandatory obtaining PAN shall not apply. Refer to the notification here.
Refer to the notification here. – August 2020
A Memorandum of Understanding was signed between the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs(CBIC), for data exchange between the two organizations. Please refer to the press release here.
OECD has published a progress report on Tax Cooperation for Development which highlights OECD’s work on building tax systems in developing countries, unlocking a range of tools, experience and expertise to meet the tax challenges of the 21st century. Please access the report here.
SEBI signs a formal Memorandum of Understanding with the Central Board of Direct Taxes (‘CBDT’) for data exchange, marking the beginning of a new era of cooperation and synergy between SEBI and CBDT. Please refer to the press release here.
The rule and forms areavailable here.
Central Board of Direct Taxes further extends tax compliance, other due dates under the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020. Please refer to the notification here.
Please access the notification here.
Please access the press release here.
Pr. CCIT (International tax) announces jurisdictions of income tax authorities / AOs for ‘Equalisation levy’ purposes, pursuant to powers conferred under CBDT notification no. 20/2020 and Sec. 178 of Finance Act, 2016. here
Please access the rules here
Please access the notification here.
On 6 May 2020, the Indian Central Board of Direct Taxes (CBDT) issued a notification on amending its Mutual Agreement Procedure (MAP) rules (Amended MAP Rules). Please access the notification here.