Business Current Affairs Central Board of Direct Taxes amends 44G of Income-tax Rules 1962

Central Board of Direct Taxes amends 44G of Income-tax Rules 1962

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Central Board of Direct Taxes has amended Rule 44G of Income-tax Rules, 1962 for making an application to invoke the Mutual Agreement Procedure (MAP) in Form no. 34F.
These rules will be called Income-tax (8th Amendment) Rules, 2020.

IMPORTANT HIGHLIGHTS OF AMENDMENTS

Rule 44G deals with application and procedure for giving effect to MAP agreement.
The revised Form 34F deals with respect to making application to the competent authority for invoking MAP.
Indian authorities would “endeavour” to resolve MAP disputes within a timeframe of 24 months. This move is aimed at speedy settlement of cases of multinational corporations that have opted the alternative dispute resolution process.
If a resolution is arrived, the same shall be communicated to the assessee, who shall communicate his acceptance or non-acceptance within 30 days.
Upon acceptance of the resolution, the assessee shall withdraw any appeal filed in this regard and pay the tax determined by the assessing officer after giving effect to the resolution.

ABOUT MAP

It is an alternative dispute resolution process under the tax treaties, under which competent authorities of two countries enter into discussions to resolve tax-related disputes.
As many as 600 tax disputes were resolved under MAP between April 1, 2014, and December 31, 2018.

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