Newsflash - Amendments in Rule 10DA (Master File) and Rule 10DB (CbCR) of Income-tax Rules, 1962

On 5 April 2021, Central Board of Direct Taxes (CBDT) made an amendment through Notification No. 31/2021 [F.No.370142/19/2019-TPL] in Rule 10DA and Rule 10DB of the Income-tax Rules, 1962 for laying down the guidelines for maintaining and furnishing of transfer pricing documentation in the Master File and Country-by-Country report (‘CbCR’). The snippet of amendment is as under:

 

Master File: Any Indian constituent entity of any Multinational Enterprises (MNEs) irrespective of residential status can be designated and file Form 3CEAB on behalf of such MNE group, wherein erstwhile only a  constituent entity resident in India can only be designated and file Form 3CEAB;

 

Country-by-Country Report (CbCR): CBCR related filings by Indian constituent entities only required if consolidated group revenue exceeds INR 6400 crore (erstwhile INR 5500 crore)  in immediately preceding accounting year of parent entity. The changes in CbCR threshold also align with current threshold of 750 million Euro provided by Organisation for Economic Operation and Development (OECD).

 

We have provided a comparative overview of erstwhile and amended rules and impact of amendment in the Newsflash.

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