TaxTMI 
TaxTMI 
Draft - Framing of rules in respect of Country-by-Country reporting and furnishing of master file – comments and suggestions-reg.
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.... of an international group, which was to be furnished as per rules prescribed in this regard. 2. Consequent to the aforesaid amendments to the Act, it is proposed to insert rules 10DA, 10DB and form nos. 3CEBA to 3CEBE in the Income-tax Rules, 1962 ('the Rules'), laying down the guidelines for maintaining and furnishing of transfer pricing documentation in the Master File and Country-by-Country report. In this regard, the following guidelines are proposed to be prescribed: 2.1 The following rules 10DA and 10DB are proposed to be inserted in the Rules after the existing rule 10D: "Information and documents to be kept and maintained under proviso to sub-section (1) and to be furnished in terms of sub-section (4) of Section 92D. 10DA. (1) Every person, being a constituent entity of an international group shall,__ (i) if the consolidated revenue of the international group, of which such person is a constituent entity, as reflected in the consolidated financial statement of the international group for the accounting year preceding such previous year, exceeds five hundred crore rupees; and (ii) the aggregate value of international transactions,__ (A) during the repor....
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....onal group along with the names and addresses of the group entities that legally own such intangibles; (g) a list and brief description of important agreements among members of the international group related to intangibles, including cost contribution arrangements, principal research service agreements and license agreements; (h) a detailed description of the transfer pricing policies of the international group related to research and development and intangibles; (i) a description of important transfers of interest in intangibles, if any, among entities of the international group, including the name and address of the selling and buying entities and the compensation paid for such transfers; (j) a detailed description of the financing arrangements of the international group, including the names and addresses of the top ten unrelated lenders; (k) a list of group entities that provide central financing functions, including their place of operation and of effective management; (l) a detailed description of the transfer pricing policies of the international group related to financing arrangements among group entities; (m) a copy of the annual consolidated financial....
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....f section 286, every constituent entity resident in India, shall, if its parent entity is not resident in India, notify the Director General of Income-tax (Risk Assessment) in Form 3CEBB, the following, namely:- (a) whether it is the alternate reporting entity of the international group; or (b) the details of the parent entity or the alternate reporting entity, as the case may be, of the international group and the country or territory of which the said entities are residents. (2) The notification referred to in sub-rule (1) shall be made on or before sixty days prior to the due date for furnishing of report as prescribed under sub-section (2) of section 286. (3) Every parent entity or the alternate reporting entity, as the case may be, resident in India, shall, for every reporting accounting year, furnish the report referred to in sub-section (2) of section 286 to the Director General of Income-tax (Risk Assessment) in Form 3CEBC. (4) A constituent entity of an international group, resident in India, other than the entity referred to in sub-rule (3), shall furnish the report referred to in sub-rule (3) within the time specified therein if the provisions of sub-secti....
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....their addresses - Serial Number Name Address 2. Chart depicting the legal status of the constituent entity and ownership structure of the entire international group- 3. Written description of the business of the international group during the reporting accounting year in accordance with clause (c) of sub-rule (1) of rule 10DA containing the following, namely:- (i) the nature of the business or businesses; (ii) the important drivers of profits of such business or businesses; (iii) a description of the supply chain for the five largest products or services of the international group in terms of revenue and any other products and services amounting to more than five per cent. of the group revenue or turnover; (iv) a list and brief description of important service arrangements among members of the international group, other than those for research and development services; (v) a description of the capabilities of the main service providers within the international group; (vi) the transfer pricing policies for allocating service costs and determining prices to be paid for intra-group ....
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....nal group related to financing arrangements among group entities - 13. A copy of the annual consolidated financial statement of the international group- 14. A list and brief description of the existing unilateral advance pricing agreements and other tax rulings in respect of the international group for allocation of income among countries - I ................................................... son/daughter/wife* of Shri .................................... hereby declare that I am furnishing the information in my capacity as ................................. (designation) of .................................... (name of the assessee) and I am competent to furnish the said information and verify it. Place: ................ Signature Date: ................. Address of the declarant ................................. PAN of the declarant Note: *Strike off whichever is not applicable FORM NO. 3CEBB [See rule 10DB] Notification Report by a constituent entity, resident in India, of a non-resident international group for the purposes of sub-section (1) of Section 286 of the Income-tax Act, 1961 1. Name of the constituent entity ....
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....p; I ...................................................... son/daughter/wife* of Shri .................................... hereby declare that I am furnishing the information in my capacity as ................................. (designation) of .................................... (name of the assessee) and I am competent to furnish the said information and verify it. Place: ............... Signature Date: ................. Address of the declarant ................................. PAN of the declarant Note: *Strike off whichever is not applicable. FORM NO. 3CEBE [See rule 10DA] Notification Report by a constituent entity, resident in India, of a non-resident international group for the purposes of sub-section (4) of Section 92D of the Incometax Act, 1961 1. Name of the constituent entity - 2. Address of the constituent entity - 3. Permanent account number of the constituent entity - 4. Name of the international group - 5. Name of the parent entity of the international group - 6. Address of the parent entity of the international group 7. The country of residence of the parent enti....
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....ENTERPRISES GROUP INCLUDED IN EACH AGGREGATION PER TAX JURISDICTION Name of the Multinational Enterprise group: Fiscal year concerned: Main Business Activity(-ies) Tax Jurisdictio n Constituent entities Resident in the Tax Jurisdictio Tax Jurisdiction of Organisation or n Incorporatio n if Different from Tax Jurisdiction of Residence Research and Developme nt Holding or Managing Intellectual Property Purchasing or Procuremen t Manufacturin g or Production Sales, Marketing or Distribution Provision of Services to Unrelate d Parties Interna 1 Group Financ Regulate e d Financial Services Insuranc Holding Shares or other Dorman Other Equity instruments 1. N PART C: ADDITIONAL INFORMATION Name of the Multinational Enterprises group: Reportable accounting year: Please include any further brief information or explanation that is considered necessary or that would facilitate the understanding of the compulsory information provided in Part A and Part B. (e.g. Source of Data) 2. ....
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....olumn titled "Income Tax Paid (on Cash Basis)", the Reporting MNE should report the total amount of income tax actually paid during the relevant fiscal year by all Constituent Entities resident for tax purposes in the relevant tax jurisdiction. Taxes paid should include cash taxes paid by the Constituent Entity to the residence tax jurisdiction and to all other tax jurisdictions. Taxes paid should include withholding taxes paid by other entities (associated enterprises and independent enterprises) with respect to payments to the Constituent Entity. Thus, if company A resident in tax jurisdiction A earns interest in tax jurisdiction B, the tax withheld in tax jurisdiction B should be reported by company A. 5. Under the column titled "Income Tax Accrued - Reportable Accounting Year", the Reporting MNE should report the sum of the accrued tax expense recorded on taxable profits or losses of the year of reporting of all Constituent Entities resident for tax purposes in the relevant tax jurisdiction. The tax expense should reflect only operations in the reportable accounting year and should not include deferred taxes or provisions for uncertain tax liabilities. ....