Report in Form 3CEAD by Constituent Entity of an International Group Resident in India to be filed by March 31, 2019

Jan 03, 2019 | by Avantis RegTech Legal Research Team

Finance & Taxation Compliance

Amendments to the Income-tax Rules, 1962 have been carried out and Rule 10 DB (4) has been substituted to provide that the period for furnishing of the report under Section 286 (4) of the Income-tax Act, 1961 by the constituent entity referred to in that sub-section shall be 12 months from the end of the reporting accounting year.

Representations from the stakeholders have been received by the Central Board of Direct Taxes (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 Section 286 (2) of the Act and where the reporting accounting year is calendar year based, that is ending on December 31 of the year would need to furnish the report under Section 286 (4) 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 Rule 10DB (4) 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 CbCR by March 31, 2018 which is not plausible.

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

[Circular No. 9/2018]



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