CBDT extends the due date for furnishing of report under section 286(4) of the Income Tax Act, 1961

Dec 27, 2018 | by Avantis RegTech Legal Research Team


The Central Board of Direct Taxes (CBDT) on December 26, 2018 has extended the period for furnishing of the report by the constituent entities, in respect of reporting accounting years ending upto February 28, 2018 to March 31 2019.

CBDT has issued Vide Notification in GSR 1217 (E) dated December 18, 2018 for the substitution of Sub-section (4) of Section 10DB, to provide that the period for furnishing of the report under sub-section (4) of section 286 of the Income-tax Act, 1961 by the constituent entity referred to in that sub-section shall be twelve months from the end of the reporting accounting year.

It has been further provided that in case the parent entity of the constituent entity is resident of a country or territory, where there has been a systemic failure of the country or territory and the said failure has been intimated to such constituent entity, the period for submission of the report shall be six months from the end of the month in which said systemic failure has been intimated.

Representations from the stakeholders have been received by CBDT in the matter. It has been inter-alia, stated that the constituent entity of an international group, which is resident in India, having parent entity resident in jurisdictions with which India does not have an agreement providing for exchange of the report of the nature referred to in sub-section (2) of the Act and where the reporting accounting year is calendar year based. i.e ., ending on December 31 of the year, would need to furnish the report under sub-section (4) of section 286 of the Act in India by December 31, 2018.

It has also been represented that read with the amendment to section 286 of the Act and the substituted sub-rule (4) of rule 10DB of the Rules, the constituent entity in such case for reporting accounting year ending on March 31, 2017 would have been required to furnish the Country-by-country Reporting (CbCR) by March 31, 2018 which is not possible.

In order to remove the genuine hardship in furnishing of the report under Sub-section (4) of section 286 of the Act read with sub-rule (4) of rule 10DB of the Rules and as a one-time measure, the CBDT extend the period for furnishing of the report by the constituent entities referred to under clause (a) or (aa) of said sub-section, in respect of reporting accounting years ending upto February 28, 2018 to March 31, 2019.

[Circular No. 9/2018]

URL: https://www.incometaxindia.gov.in/communications/circular/circular_9_2018.pdf


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