Central Board of Direct Taxes (CBDT) has issued Notification No. 03/2020 in order to amend Rule 10DA and Rule 10DB of Income tax Rules,1962 regarding furnishing of information and maintenance of documents by constituent entity of an international group with effect from 1st day of April, 2020.

Finance (No. 2) Act, 2019 amended Section 92D of the Income Tax Act, 1961 to provide clarification that a constituent entity of an international group shall be required to maintain and furnish the master file even when it doesn’t enter into any international transaction during the previous year. Now, the CBDT has correspondingly made amendments in Rule 10DA and Rule 10DB of the Income-tax Rules, 1962.

Key Points of the Amendments are :

1. Marginal Heading of Rule 10DA of Income Tax Rules, 1962 has been substituted as “Maintenance and furnishing of information and document by certain person under section 92D”
2. Sub Rule 2 of Rule 10DA of Income Tax Rules, 1962 has been substituted to provide that the information and document to be furnished by constituent entity of an international group as specified under sub-rule (1) of Rule 10DA of the Income Tax Rules, 1962 shall be furnished to the Joint Commissioner as may be designated by the Director General of Income-tax (Risk Assessment), in Form No. 3CEAA on or before the due date for furnishing the return of income. Earlier, Form no. 3CEAA was required to be furnished to the Director General of Income-tax (Risk Assessment)
3. Sub Rule 1 of Rule 10DB of Income Tax Rules, 1962 has been substituted to provide that the income-tax authority for the purposes of section 286 shall be the Joint Commissioner as may be designated by the Director General of Income-tax (Risk Assessment)
4. In Sub Rule 3 of Rule 10 DB of Income Tax Rules, 1962, the words and brackets “to the Director General of Income-tax (Risk Assessment)” shall be omitted. Henceforth, every parent entity or the alternate reporting entity, as the case may be, resident in India, shall, for every reporting accounting year, furnish the report in Form No. 3CEAD to Joint Commissioner as may be designated by the Director General of Income-tax (Risk Assessment).

For further details please refer the attached document.

Source: Central Board of Direct Taxes

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