corporate taxes

July 2022

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:

  • SAED on domestically produced crude increased to INR 17,750 per tonne from INR 17,000 per tonne
  • SAED on export of diesel reduced to INR 5 per litre from INR 11 per litre
  • SAED on export of aviation turbine fuel is now exempt

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.

The Government levied additional duties on exports of petroleum crude, petrol, diesel and aviation turbine fuel to tax the windfall gains earned by petroleum companies on exports. The situation shall be reviewed weekly, and the additional levies would be withdrawn only if the global oil prices fall by USD 40/barrel. The Press Release dated July 01, 2022 detailing the Government’s motives behind these levies can be accessed here.

June 2022

CBDT vide its office orders has set up National Faceless Assessment Centre (NaFAC), Assessment Units, Verification Units and Review Units across the country, and these orders shall be in effect from June 06, 2022.
CBDT has amended Rule 10TD of the Income Tax Rules, 1962 to extend the applicability of Safe Harbour Rules for AY 2022-23. The amended rules are applicable from April 01, 2022. The Notification number 66/2022 dated June 17, 2022 can be accessed here.
CBDT issued updated guidelines concerning MAP on June 10, 2022, clarifying certain issues requested by stakeholders:

(i) Clarification on the interplay of Vivad Se Vishwas Scheme (VSV) and MAP

  • For resident taxpayer opting for VSV in a case involving TP adjustments and where the same is accepted by Indian authorities, MAP applications from the taxpayer and their AEs may be allowed. The outcome under MAP however shall not deviate from that under VSV. Correlative relief shall be provided instead.
  • For non-resident taxpayer opting for VSV, there shall be no access to MAP for the same issue.
(ii) Clarification regarding responsibilities of applicants to make full disclosure and provide up to date information.

The detailed guidance can be accessed here.
CBDT notified new Rule 21AIA prescribing ‘other conditions’ required to be fulfilled by a specified fund claiming exemption in respect of certain incomes under Section 10(4D) of the Income Tax Act, 1961.The Notification No. 64/2022 dated June 16, 2022 can be addressed here.
CBDT issued a notification exempting TDS on lease rentals paid to aircraft leasing units located in International Financial Services Centre (IFSC). The exemption shall be applicable from July 01, 2022, and the relaxation shall be available for ten consecutive assessment years. The Notification No. 65/2022 can be accessed here.
CBDT has issued guidelines in Q-and-A form to address difficulties in implementation of Section 194R, which mandates TDS on any benefit or perquisite in respect of business or profession. The circular dated June 16, 2022 can be addressed here.
CBDT has notified conditions specified by the Central Government under Section 9A(8A for investment fund and fund manager located in International Financial Services Centres. Please access the notification here.

May 2022

In light of changes under Finance Act, 2022 that deals with functionality for compliance of Sections 206AB and 206CCA CBDT has modifies circular to bring in portal functionality for the purpose of Sec 206AB/206CCA. Please refer to the circular here.
CBDT has notified Faceless Penalty (Amendment) Scheme, 2022 to amend Faceless Penalty Scheme, 2021. Please access the scheme here.

April 2022

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 .

CBDT has issued revised Instruction for Constitution and Functioning of Local Committees to deal with Taxpayers’ Grievance from High-Pitched Scrutiny Assessments. Please refer to the instructions here.

March 2022

CBDT has allowed physical filing of Form No. 3CF required under the provisions of Section 35(1)(ii)/(iia)/(iii) read with Rules 5C(1A) and 5F(2)(aa). The relaxation from e-filing is applicable from the date of issuance of this Circular upto the date on which e-filing is made available for Form No. 3CF but not beyond Sep 30, 2022. The Circular has been issued as difficulties were being faced in e-filing of Form No. 3CF which was notified with effect from Apr 1, 2021. Please refer to the circular here.
Directorate General of Systems and Data Management (DG Systems), CBIC has issued advisory detailing step-by-step guide for creation of e-scrip account, generating scrips and transferring of the scrips to any other Importer-Exporter Code for availing the benefit under various incentive schemes. Please refer to the advisory here.

February 2022

To bring parity in the tax treatments for the Organisation for Economic Cooperation ad Development (OECD) member nations, the concept of Most Favoured Nation (MFN) is prevalent under International tax laws.  Central Board of Direct Taxes has issued clarifications around the applicability of MFN clause of Indian Double Taxation Avoidance Agreements (DTAAs or treaties) with OECD member states (or countries). Please access the CBDT circular here.
OECD has released Draft Rules for Nexus & Revenue Sourcing as a part of multi-stage public consultation for Amount A of Pillar One. Click here to read the OECD Press Release and also to download the public consultation document.

January 2022

The board has extended the due date for filing tax audit reports, report u/s 92E for AY 2021-22 to Feb 15, 2022; Extends due date for filing ITRs to Mar 15, 2022. Please see the circular here.
CBDT’s Foreign Tax & Tax Research Division releases International Tax Bulletin for the month of November 2021. Please access here.
OECD/G20 Inclusive Framework on BEPS releases fifth annual Peer Review Report assessing 131 jurisdictions’ progress on exchanging information on tax rulings, in accordance with Action 5, for the calendar year 2020. This is the first review taking place under the renewed peer review process, agreed upon by the member nations last year, with a view to further enhancing and consolidating transparency in relation to the issuance of tax rulings; Click here to read and download the Annual Peer Review Report.
The OECD has published detailed rules to assist in the implementation of a landmark reform to the international tax system, which will ensure Multinational Enterprises (MNEs) will be subject to a minimum 15% tax rate from 2023. The Pillar Two model rules provide governments a precise template for taking forward the two-pillar solution to address the tax challenges arising from digitalisation and globalisation of the economy agreed in October 2021 by 137 countries and jurisdictions under the OECD/G20 Inclusive Framework on BEPS. Please refer to the rules along with the press release here.
The Central Board of Direct Taxes has issued new rules for faceless collection of information from taxpayers, where mismatches are detected. The scheme is notified under a provision in Income Tax Act 135A that proposes faceless information gathering aimed at imparting efficiency, transparency and accountability by eliminating the interface between the income-tax authority and the assessee. Please refer to the notification here.
The income tax department has brought in changes to the existing faceless appeal scheme, easing the process for taxpayers wanting a personal hearing through video conference while appealing against a tax demand by the department. The Central Board of Direct Taxes (CBDT) on December 28, notified the ‘Faceless Appeal Scheme, 2021’ and said that the Commissioner (Appeals) shall allow the request for personal hearing via video conference and communicate the date and time of hearing to the appellant through the National Faceless Appeal Centre. Please refer to the relevant office orders along with the notifications here.
CBDT has issued guidelines to address the request of priority/out of turn hearing of appeals by CIT(A)/Appeal Units. Click here to read and download CBDT Guidelines. Please refer to the guidelines here.

November 2021

CBDT, vide Circular No. 20 of 2021 has issued much awaited guidelines on scope of Sections 194-O(4), 194Q(3) and 206C(1-I). Click here to read and download the CBDT Circular.
US and India have reached an agreement with respect to differences relating to the 2% equalization levy (DST) charged by India on e-commerce transactions. The final terms of the agreement will get crystallized by February 1, 2022. India’s Union Budget is announced on February 1, 2022 and we are expecting these aspects to get covered and necessary amendment being introduced. Please access the Ministry of Finance Press release here .
CBDT has notified the e-Settlement Scheme, 2021 framed by the Central Government . The Scheme is meant to deal with pending applications in respect of which the option u/s 245M has not been exercised and have been allotted or transferred by CBDT to the Interim Board. Please refer to the notification here.

October 2021

Ministry of Finance has extended the applicability of Transfer Pricing Tolerance Range to AY 2021-22 and has also retained the tolerance range u/s. 92C of the Income-tax Act, 1961 (for AY 2021-22 at 1% for wholesale trading and 3% in all other cases. Please refer to the notification here.

September 2021

OECD/G20 Inclusive Framework on BEPS releases fifth annual Peer Review Report assessing 131 jurisdictions’ progress on exchanging information on tax rulings, in accordance with Action 5, for the calendar year 2020. This is the first review taking place under the renewed peer review process, agreed upon by the member nations last year, with a view to further enhancing and consolidating transparency in relation to the issuance of tax rulings; Click here to read and download the Annual Peer Review Report.

August 2021

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

June 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.

In light of the current COVID second wave several issues have emerged for our companies with regards to Corporate taxes. Given this Forum is planning to submit a detailed note to CBDT with detailed issues and recommendations.

May 2021

In a recent notification, Central Board of Direct Taxes has laid down valuation rules for computing fair market value of an undertaking transferred under “slump sale”. Please refer to the notification here.
Central Board of Direct taxes has through a notification provided exemption to eligible foreign investors investing in the specified securities and non-resident investors/unit holders of Category III Alternative Investment Funds (AIFs) which are set-up in International Financial Services Centre (IFSC) from the requirement of obtaining a Permanent Account Number (PAN) (i.e. the Indian tax identification number) subject to satisfaction of prescribed conditions. The Notification is effective from 4 May 2021. Please access the notification here.

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.

In light of the current COVID second wave several issues have emerged for our companies with regards to Corporate taxes. Given this Forum is planning to submit a detailed note to CBDT with detailed issues and recommendations.

March 2021

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:

  • Definition of “liable to tax” modified to specifically provide that persons having an “income-tax liability” under the laws in force in a country shall be considered as liable to tax in such country.
  • Threshold for taxation of interest accruing on employees’ contribution to specified provident fund schemes increased from INR0.25m to INR0.5m where there is no employer contribution.
  •  Mechanism provided for reducing the existing goodwill from tax block of intangible assets pursuant to denial of depreciation on goodwill w.e.f. tax year 2020-21 onwards.
  • Provisions for taxing firm with respect to receipt of cash or specified assets by partners in connection with dissolution or reconstitution as proposed by FB 2021 revamped and streamlined.
  • Slump sale capital gains computation modified to consider fair market value of undertaking on date of transfer (to be prescribed by rules) as full value of consideration and cost of goodwill of business or profession at NIL (except where it is acquired by purchase from previous owner).
  • Relief from additional levy of Minimum Alternate Tax (MAT) in case of secondary adjustment or Advance Pricing Agreement (APA) entered by a taxpayer to apply only if the taxpayer has not utilized MAT credit in any subsequent tax years (TYs).
  • Non-Resident (NR) e-commerce operator not obligated to pay 2% equalisation levy (EL) on value of sale of goods owned by or services provided by residents or NRs having permanent establishment (PE) in India (to which such sale or provision is effectively connected) through digital platform of such e-commerce operator.
  • For the purpose of triggering the extended limitation period of 11 years from the end of relevant TY under the new reassessment regime proposed vide FB 2021, the term “asset” defined to include immovable property, shares and securities, loans and advances, and deposits in bank account.
  • Mandatory fee for delay in filing of tax return is reduced to INR 5,000 from INR 10,000.
  • New levy of fees up to INR 1,000 introduced for default in intimating Aadhaar number for taxpayers who are holding valid Permanent Account Number (PAN) as on 1 July 2017.

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

The Indian Finance Minister presented the Union Budget 2021 on February 1 2021. Key tax announcements made in the Budget which include some clarifications with respect to the equalization levy or the digital service tax and various other procedural changes. Most of the tax proposals will be applicable from April 1, 2021 unless otherwise specified. Please access the updates (here) and (here). On the basis of feedback received from our members, USISPF shared detailed submission as a post budget feedback to the Government on tax amendments.
Central Board of Direct Taxes has issued a circular which states that, where the Designated Authority passes an order to settle any direct tax dispute under Direct Tax Vivad Se Vishwas Act, 2020 (VSV), the tax authority shall pass consequential orders under the Income-tax Laws. Please refer to the circular here.
The provisions of the Income Tax Act, 1961 permit the tax authority, subject to certain conditions, to reopen a case for assessment where the tax authority has a reason to believe that income has escaped assessment. Generally, such reopening is permitted for a period up to seven years from the end of the relevant tax year which is it is sought to be reopened. In this regard, the CBDT has issued instructions directing that no cases other than the following categories of cases shall be considered for reopening in respect of tax year 2012-13 to 2016-17
The rapid outbreak of the novel coronavirus led to global lockdowns and caused massive interruptions of international flights, stranding the citizens in different countries, including several foreign nationals in India last year. In order to provide clarity on tax residency, the Central Board of Direct Taxes had issued Circular No 11, dated 8 May 2020, providing relief to individuals who came to India on a visit before 22 March 2020 and could not leave or depart on or before 31 March 2020, due to the COVID-19 pandemic and related travel restrictions. This Circular clearly defined the residency status of NRIs, expatriates, and other foreign nationals for Financial Year 2019-20 who arrived in India but could not return to their countries. Similar clarification was awaiting FY 2020-21. After receiving several representations from affected taxpayers, the CBDT has finally addressed this concern by issuing a fresh Circular No 2, on 3 March 2021. Please refer to the circular here.
Central Board of Direct Taxes has made further amendments in the computation of remuneration payable to fund manager u/s 9A. Forum had engaged with CBDT last year sharing industry suggestions. Please access the CBDT notification here

February 2021

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.

January 2021

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.

The Central Board of Direct Taxes has released the Faceless Penalty Scheme, 2021. The penalty under this Scheme shall be imposed in respect of such territorial area, or persons or class of persons, or income or class of income or cases or class of cases, or penalties or class of penalties as may be specified by the Board. Please refer to 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

October 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.

September 2020

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.

August 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.

July 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.
  • CBDT further relaxes timeline for processing of ‘validly filed’ returns having refund claims beyond the prescribed time-line for sending intimation as per second proviso to Sec. 143(1). 
  • CBDT provides one-time relaxation for verification of e-filed tax returns for AYs 2015-16 to 2019-20, which are pending due to non-filing of the ITR-V form. Refer to the circular here
  • CBDT enables functionality to verify return filing compliance for the purpose of determination of tax withholding rate and threshold on cash withdrawals
  •  Central Board of Direct Taxes restarts proceedings under faceless scheme

June 2020

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.
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

May 2020

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.
For further details please reach us here

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.

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.

  • CBDT further relaxes timeline for processing of ‘validly filed’ returns having refund claims beyond the prescribed time-line for sending intimation as per second proviso to Sec. 143(1). 
  • CBDT provides one-time relaxation for verification of e-filed tax returns for AYs 2015-16 to 2019-20, which are pending due to non-filing of the ITR-V form. Refer to the circular here
  • CBDT enables functionality to verify return filing compliance for the purpose of determination of tax withholding rate and threshold on cash withdrawals
  •  Central Board of Direct Taxes restarts proceedings under faceless scheme

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

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

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

USISPF Home Tax Forum Members