Central Board of Direct Taxes amends 44G of Income-tax Rules 1962
- 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.
- 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.
- Part of Department of Revenue in the Ministry of Finance.
- Statutory authority functioning under the Central Board of Revenue Act, 1963.
- Chairperson of CBDT-Pramod Chandra Mody