Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Top Headlines »
Open DEMAT Account in 24 hrs
 March 31 deadline is getting near. How to save income tax with tax loss harvesting?
 45-day MSME payment rule: Impact and details of Section 43B(h) explained
 Small savings schemes that offer tax benefits of up to Rs 1.5 lakh under section 80C
 RE-OPENING OF CORRECTION WINDOW FOR MAY 2024 CA EXAMINATIONS
 Powerful Upgrades, Tally 12+1 months renewal Plan and Connected Services for your growing Business - March 2024
 How innovative solutions can help fix the Sec 43B conundrum for MSMEs
 Income Tax dept asks many individuals to explain high value transactions of FY20-21 as Updated ITR deadline nears
 Release Notes for TallyPrime and TallyPrime Edit Log Release 4.1 | What s New!
 Deadline to file updated ITR FY20-21 ends on March 31: Details on additional tax
 4 tax-planning mistakes to avoid this season
 ITR 2024: Here are 8 ways by which senior citizens can save on taxes this year

CBDT issues this important note - All you need to know Income Tax alert
August, 10th 2020

In May, the government amended Income Tax rules to state that Indian authorities would "endeavour" to resolve disputes under MAP within a timeframe of 24 months, a move aimed at speedy settlement of cases of MNCs which have opted the alternative dispute resolution process.

In a major development, the income tax department has said that Indian authorities will not deviate from the resolution order passed by statutory appellate body ITAT in cross-border tax disputes which are undergoing simultaneous resolution through mutual agreement procedure (MAP).

Mutual agreement procedure (MAP)

MAP is an alternative dispute resolution process under the tax treaties, under which competent authorities of two countries enter into discussions to resolve tax related disputes. As many as 600 tax disputes have been resolved under MAP between April 1, 2014 to December 31, 2018.

Guidance note on MAP by CBDT

 

-The Central Board of Direct Taxes (CBDT) has come out with a guidance note on MAP which also specifies cases or situations in which India will provide access to MAP.

-Tax disputes relating to transfer pricing adjustments, determination of existence of a permanent establishment, attribution of profits to permanent establishments, characterisation or re-characterisation of an expense or receipt as a taxable expense or taxable income would be covered under MAP if they result in taxation not in accordance with the relevant DTAAs.

- The guidance note also said that India shall provide access to MAP even in a situation where the Indian tax authorities apply domestic anti-abuse provisions.

- Moreover, the CBDT said that in case of orders of Income Tax Appellate Tribunal (ITAT), the Competent Authorities (CAs) of India shall not deviate from the orders of the ITAT for the relevant year where the dispute is decided on merits.

- It said that since MAP and domestic remedy proceedings can be availed by the taxpayers simultaneously, there could be instances where the ITAT in India passes an order in respect of the same disputes that are also being examined under MAP.

- "Since the ITAT is an independent statutory appellate body, which is outside the administrative jurisdiction of the Indian tax authorities; and is the highest fact-finding body on tax matters, the CAs in India shall not deviate from the orders of the ITAT for the relevant year where the dispute is decided on merits," the CBDT guidance note said. Such MAP cases shall be closed as having been resolved by a domestic remedy.

- "However, if the order of the ITAT does not resolve the disputes but only sets them aside to be adjudicated afresh, then access to MAP would be provided again after the fresh adjudication by tax authorities, if requested for by the relevant taxpayers," it added.

In May, the government amended Income Tax rules to state that Indian authorities would "endeavour" to resolve disputes under MAP within a timeframe of 24 months, a move aimed at speedy settlement of cases of MNCs which have opted the alternative dispute resolution process.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting