CBDT seeks more transparency in cross-national transactions

New Delhi: The Central Board of Direct Taxes (CBDT) on Saturday invited comments from stakeholders and general public on a draft notification that aims to bring greater transparency in cross-national transactions.

It said the comments need to be sent via e-mail before April 30.

A CBDT statement said that under Action 5 of the Base Erosion and Profit Shifting (BEPS) action plan, exchange of rulings is required to be done not only with the countries of residence of all related parties with whom taxpayer enters into transaction, but also with the country of residence of the immediate parent company and the ultimate parent company.

"Therefore, in order to implement the recommendations made under Action 5 of BEPS action plan to bring greater transparency in cross-national transactions, forms 34C and 34D (forms for advance rulings) are required to be modified so that details such as name, address and country of the residence of non-resident's immediate parent company or ultimate parent company etc. are captured at application stage itself," the statement said.

It added that a draft notification has been accordingly framed and uploaded on the website of the Income Tax Department for comments from stakeholders and general public.

"The comments and suggestions on the draft rules and forms may be sent by April 30 electronically at the e-mail address ts.mapwal@nic.in," it said.