corporate taxes

OECD released the latest mutual agreement procedure (MAP) statistics covering 127 jurisdictions. These statistics form part of the BEPS Action 14 Minimum Standard and the wider G20/OECD tax certainty agenda to improve the effectiveness and timeliness of tax-related dispute resolution mechanisms. Further details can be accessed here.
The Revenue Statistics 2022 report can be accessed here while the Consumption Tax Trends 2022 report can be accessed here.

November 2022

22 jurisdictions signed the Multilateral Competent Authority Agreement (MCAA) for the automatic exchange of information under the OECD Model Rules for Reporting by Digital Platforms, at the OECD Global Forum’s 15th Plenary Meeting.
OECD has published the compilation of public comments received on ‘Progress Report on the Administration and Tax Certainty Aspects of Amount A of Pillar One’. The report can be accessed here.
CBDT has released a draft format for a consolidated tax return, which also seeks information from Indians residing abroad on any business connections in India, and details of significant economic presence of such businesses, if any. This could have an impact on Indian traders on crypto exchanges even if not incorporated in India. The draft can be accessed here.
The due date for filing TDS Statement in Form 26Q for second quarter of FY 2022-23 has been extended by a month to Nov 30, 2022. The Circular No.21/2022 dated October 27, 2022 can be accessed here.
CBDT has released Explanatory Notes to Provisions of Finance Act, 2022 vide Circular 23/2022 dated November 03, 2022, which can be accessed here.
ICAI releases its Ninth Edition of the Guidance Note on Report under Section 92E which also incorporates amendments made by the Finance Act, 2022. The report can be accessed here.
The UN Sub-committee on Tax Matters has proposed to include a general “subject to tax” rule (STTR) in the United Nations Model Double Taxation Convention. The proposal can be accessed here.

October 2022

The OECD during the 14th plenary meeting of the G20 Inclusive Framework on BEPS released a Progress Report on the Administration and Tax Certainty Aspects of Amount A of Pillar One, and is now inviting public comments on the same. The report can be accessed here.
The OECD has released a new global tax transparency framework (named the ‘Crypto-Asset Reporting Framework’) for the reporting and exchange of information between countries on crypto-assets. The report can be accessed here.
The jurisdiction of CIT(A) for International Tax & Transfer Pricing cases across the country has been notified by CBDT. The applicable Notification No. 113/2022 dated October 13, 2022, can be accessed here.
The relevant Notification No. 112/2022 dated October 7, 2022 can be accessed here.
The Income Tax Department has published FAQs on filing of Form 27C. The FAQs can be accessed here.

September 2022

The World Bank has released a report titled ‘The Global Minimum Tax: from agreement to implementation’ analysing key elements of the Global Minimum Tax and its practical implementation in respective countries. The report can be accessed here.
The due date for filing tax audit report has been extended till October 07, 2022. The Circular No. 19/2022 dated September 30, 2022 can be accessed here.
CBDT notifies Rule 132 of the Income Tax Rules (with effect from October 01, 2022) prescribing rule and forms for taxpayers to make voluntary application with the tax authority for re-computation of total income to avoid deeming penal consequences for under-reported income on account of disallowance, on retrospective basis, of surcharge or cess as business deduction which was claimed and allowed in the past.
Deadline for filing Form ITR-A in the case of companies going through business re-organisation from April 01, 2022, to September 30, 2022 has been extended till March 31, 2023. The order dated September 26, 2022 can be accessed here.
The Central Board of Direct Taxes has issued further guidelines to address challenges in implementation of TDS under Section 194R of the Income Tax Act. The revised guidelines clarify many of the issues that the Tax Forum had advocated for on behalf of members.
CBDT issued Guidelines for Compounding of Offences under the Income-tax Act, which are set to supersede the earlier guidelines. The guidelines dated September 16, 2022 can be accessed here.

August 2022

The National Faceless Assessment Centre under Central Board of Direct Taxes issued SOPs on Faceless Assessments in a move aimed at reducing litigation and confusion about the scheme. The SOPs provide guidance and outline the process for facilitating assessments as envisaged under the provisions of Section 144B of the Income-tax Act.
CBDT has notified that non-residents as defined under the Income Tax Act shall not be subject to collection of tax at source from a person remitting money out of India under RBI’s Liberalised Remittance Scheme or purchasing an overseas tour package.
CBDT has amended the deadline for furnishing Form 67 to claim Foreign Tax Credit, effective April 01, 2022. The form can now be filed till the end of the Assessment Year in which the foreign sourced income is offered to tax or is assessed to tax in India. The Notification No. 100 of 2022 dated August 18, 2022 can be accessed here.
The Special Additional Excise Duty (SAED) imposed on domestically produced petroleum products have been revised, following the earlier revision on July 20 and August 03, 2022.
  • SAED on domestically produced crude decreased to INR 13,330 per tonne
  • SAED on export of diesel increased to INR 6 per litre from INR 15 per litre
  • SAED on export of aviation turbine fuel of INR 2 per litre (exempted as per last revision)
The relevant notifications No. 23 & 24 /2022, which shall be effective August 19, 2022, can be accessed here.

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.
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