Amendment of section 286.
67. In section 286 of the Income-tax Act, in sub-section (9), in clause (a), in sub-clause (i), the words “or alternate reporting entity” shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 2017.
Notes on Clauses:
Clause 67 of the Bill seeks to amend section 286 of the Incometax Act relating to furnishing of report in respect of international group.
The provisions of the said section, inter alia, provide for specific reporting regime containing revised standards for transfer pricing documentation and a template for country-by-country reporting.
Sub-clause (i) of clause (a) of sub-section (9) of the said section defines the expression “accounting year” to mean a previous year, in a case where the parent entity or alternate reporting entity is resident in India.
It is proposed to amend the said sub-clause so as to provide that the accounting year in case of an alternate reporting entity, resident in India, whose ultimate parent entity is outside India, shall not mean the previous year but an annual accounting period, with respect to which the parent entity of the international group prepares its financial statements under any law for the time being in force or the applicable accounting standards of the country or territory of which such entity is resident.
This amendment will take effect retrospectively from 1st April, 2017 and will, accordingly, apply in relation to the assessment year 2017-2018 and subsequent assessment years.
