Saturday, July 21, 2012

Transfer Pricing - Prescribing a Proforma for Obtaining Information - Suggestions Invited from Officers ing Information

 
Income Tax - Transfer Pricing - Prescribing a Proforma for Obtaining Information - Suggestions Invited from Officers

INFORMATION on tax matters is being sought by field officers of the Income Tax Department from countries/jurisdictions with which India has Double Taxation Avoidance Agreement (DTAA) or Tax Information Exchange Agreement (TIEA) under the relevant 'Exchange of Information' Article of DTAA/TIEA through the office of competent authority viz. the Joint Secretary in the Foreign Tax ; Tax Division, CBDT;

At present, the above information is being sought in a prescribed checklist/ proforma (Annexure-A). Further in the case of U.K, for obtaining banking information, a separate proforma has been prescribed by U.K tax authorities (Annexure-B).

Considering the developments at International Forums including the Model Proforma for the exchange of information being developed by the OECD, it is proposed to change the existing proforma. Further, it is proposed to have a separate proforma for obtaining any information relating to Transfer Pricing and prescription of a separate proforma for the same.

The Foreign Tax ; Tax Research Division has requested for views/comments on the following to the FT , TR Division by the 15th December, 2011:

++ for developing separate proforma (T.P) for Transfer Pricing cases

++ for any improvement required to be made to the present Proforma prescribed for obtaining information from countries/jurisdictions with which India has DTAA/TIEA.

++ Any other suggestion relating to the above

The FT , TR Division wants that at present the request may be sent to FT,TR. Division by the concerned Commissioner of Income Tax/Director of Income Tax as per the following guidelines:

++ Request should be made in the checklist/proforma as per Annexure A and Annexure B.

++ Request for the exchange of information may be addressed by the concerned commissioner of Income Tax/Director Income to JS, (FT,TR-I), CBDT, New Delhi, for the North America including Caribbean Island, Europe and Japan and to JS(FT,TR-II), CBDT, New Delhi, for the rest of the world.

++ The request for exchange of information for the cases getting time barred on 31st December, 2011 should be received in the office of JS (FT,TR-I) or JS(FT,TR-II), as the case maybe, by 15th December; 2011.

++ Separate requests should be made for different taxpayers even if the case pertains to same country or same foreign entity. Further, separate requests should be made for different countries even if the cases pertain to the same assessee.

CBDT FT,TR Division F. No. 504/31/2010-FTD-I, dated: 21 November 2011

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