Extending the due date for furnishing of report under section 286 (4) of IT Act

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Circular No. 9/2018

F. No 370142/17 /2018 -TPL
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
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New Delhi, Dated December 26, 2018

Order under section 119 of the Incometax Act,  1961

Vide Notification in GSR 1217 (E) dated December 18, 2018 with effect from the date of its publication in the Official Gazette,  i.e.. December 18, 2018; amendments to the Income-tax Rules, 1962 (the Rules) have been carried out and sub-rule (4) of Rule 1 ODB has been substituted; to provide that the period for furnishing of the report under sub-section (4) of section 286 of the Income-tax Act, 1961 (the Act) by the constituent entity referred to in that sub-section shall be twelve months from the end of the reporting accounting year.

1.1 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.

2. Representations from the stakeholders have been received by the Central Board of Direct  Taxes (the Board) 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.

2.1  It has also been represented that read with the amendment to section 286 of the Act and the substituted sub-rule (4) of rule 1 ODB of the Rules, the constituent entity in such case for reporting accounting year ending on March 31, 201 7 would have been required to furnish the CbCR by March 31, 2018which is not plausible.

3. 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 caused as above, and as a one-time measure, the Board, in exercise of powers conferred under section 119 of the Act, extend  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 upto February 28, 2018, to March 31. 2019.

(Niraj Kumar)
Under Secretary to the Government of India

Copy to:

  1. PS/ OSD to FM/ PS/OSD to MoS(F)
  2. PS to Revenue Secretary
  3. Chairman  and Members, CBDT
  4. All Joint Secretaries/ CsIT, CBDT
  5. Directors/ Deputy Secretaries/ Under Secretaries of CBDT
  6. DIT (RSP&PR)/Systems, New Delhi
  7. The C&AG of India (30 copies)
  8. The JS & Legal Adviser, Ministry of Law & Justice, New Delhi
  9. The Institute of Chartered Accountants of India
  10. CIT (M&TP), Official Spokesperson of CBDT
  11. O/o Pr. DGIT (Systems) for uploading on official website

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