direct taxes

April 2022

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.
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.

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.

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.

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.
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.

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.

For further details please reach us here

Subscribe to get our weekly updates

USISPF Home Tax Forum Members