In a bid to bring transparency in cross national transactions, the CBDT invites comments and suggestions of stakeholders and general public on Draft Rules and Forms under Action 5 of Base Erosion and Profit Shifting (BEPS).
According to CBDT, Form 34 C and 34 D (forms of advance rulings) are required to be amended so that details such as name, address and country of residence of non-resident’s immediate parent company or ultimate parent company etc. are captured at application stage itself.
The CBDT in its statement said that Under Base Erosion and Profit Shifting (BEPS) Action 5, exchange of rulings on Permanent Establishment (PE) by Authority for Advance 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.
Further amendments are necessary in Rule 44E and respective forms in line with substituting clause (b) of Section 245N of the income tax Act, 1961 as the definition of term applicant has been amended.