Recent Tax Policy Development in India relevant to MNCs/MNEs with Indian operations

By Daxa Bharadwa

The Central Board of Direct Taxes has issued final rules governing furnishing of Master File ('MF') and Country by Country Reporting (‘CbCR’) and timelines for the accounting year 2016-17. The thresholds prescribed for MF bring many taxpayers within the radar of additional compliance.

Key points to note:

  • Groups with consolidated revenue of GBP 642 million are required to file CbCR on or before 31 March 2018.
  • Where these filings are made in a foreign country, Indian entity is merely required to intimate the tax authorities two months prior to 31 March 2018.
  • Groups with consolidated revenue of GBP 58 million and international related party transactions of GBP 5.8 million (GBP 1.17 million in case of transactions related to intangibles) are required to file MF on or before 31 March 2018. However, Part A of the form is required to be filed by a constituent entity of international group irrespective of prescribed thresholds.
  • Where there are more than one entity in India, an intimation in Form 3CEAB is required to be filed by 01 March 2018, declaring one  of the entity as a designated entity for furnishing of MF.

CLICK HERE for detailed information about the rules from Grant Thornton India

CLICK HERE to also watch their recent webinar covering insights into the final rules, practical challenges anticipated, and the road ahead for taxpayers.

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