Advertisements
Headlines

India, US Sign Pact to Improve Tax Compliance by Multinational Enterprises

New Delhi, March 27: India and the United States on Wednesday signed an agreement for exchange of country-by-country (CbC) reports, a move that will enable enhanced level of risk assessment by both tax administrations.

The agreement was signed by P C Mody, Chairman of the Central Board of Direct Taxes, and Kenneth I. Juster, US Ambassador to India. Multinational enterprise groups having global consolidated revenue of 750 million euros or more (or a local currency equivalent) in a year are required to file CbC reports in their parent entity’s jurisdiction. In Indian rules, the rupee equivalent of 750 million euros has been prescribed as Rs 5,500 crore.

A CbC report has aggregated country-by-country information relating to global allocation of income, taxes paid and certain other indicators of an MNE group. It also contains a list of all the constituent entities of a multinational enterprise group operating in a particular jurisdiction and the nature of the main business activity of each such constituent entity. India has already signed the Multilateral Competent Authority Agreement for exchange of CbC reports with 62 jurisdictions.

 

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: