Indian Budget 2018

Key proposals under the Finance Bill 2018 pertaining to TP provisions in India

• Only clarificatory proposals introduced in Finance Bill 2018 pertaining to Transfer Pricing provisions, primarily in Section 286 of Income Tax Act, 1961.

• Due date for filing Country by Country (CbyC) report in Form 3CEAD relaxed to 12 months from the end of accounting year. Please note, for Financial Year ended on March 31, 2017 (FY 2016-17), the said timeline was already extended to March 31, 2018 by Central Board of Direct Taxes vide Circular No. 26 of 2017. Therefore, this proposal of Finance Bill 2018 would not impact timeline for filing Form 3CEAD in case of FY 2016-17 for most of the taxpayers.

• Clarification provided for mandatory filing of CbyC report by constituent entity in India, in case the parent entity is not obligated to file CbyC report in its jurisdiction and has not appointed any alternative reporting entity, or there is mechanism of exchange of such CbyC report filed overseas.

• Due date for filing of CbyC report in case of parent entities or alternate reporting entities of a Multinational Group would be such date as may be prescribed in the respective jurisdiction of the CbyC filing entity.