New Delhi: India and US will sign bilateral agreement for exchange of Country-by-Country (CbC) report by March-end, the Finance Ministry said on Friday.
“This would enable both the countries to exchange CbC Reports filed by the ultimate parent entities of International Groups in the respective jurisdictions, pertaining to the financial years commencing on or after 1st January, 2016,” an official release said.
As a result, Indian constituent entities of international groups headquartered in USA, who have already filed CbC Reports in the USA, would not be required to do local filing of the CbC Reports of their international groups in India.
As per the Income-tax Act, a constituent entity of an international group, resident in India, other than a parent entity or an alternate reporting entity of an international group, resident in India, shall furnish the Country-by-Country (CbC) Report in respect of the said international Group for a reporting accounting year within the period as may be prescribed, if the parent entity of the said International Group is resident of a country or territory,—
-where the parent entity is not obligated to file the CbC Report;
-with which India does not have an agreement providing for exchange of the CbC Report; or
-where there has been a systemic failure of the country or territory and the said failure has been intimated by the prescribed authority to such constituent entity.