TMI BlogInsertion of new section 286- Furnishing of report in respect of international groupX X X X Extracts X X X X X X X X Extracts X X X X ..... reporting entity of the international group; or (b) the details of the parent entity or the alternate reporting entity, if any, of the international group, and the country or territory of which the said entities are resident. (2) Every parent entity or the alternate reporting entity, resident in India, shall, for every reporting accounting year, in respect of the international group of which it is a constituent, furnish a report, to the prescribed authority on or before the due date specified under sub-section (1) of section 139, for furnishing the return of income for the relevant accounting year, in the form and manner as may be prescribed. (3) For the purposes of sub-section (2), the report in respect of an international group s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y any one constituent entity, if,- (a) the international group has designated such entity to furnish the report in accordance with the provisions of sub-section (2) on behalf of all the constituent entities resident in India; and (b) the information has been conveyed in writing on behalf of the group to the prescribed authority. (5) Nothing contained in sub-section (4) shall apply, if, an alternate reporting entity of the international group has furnished a report of the nature referred to in sub-section (2), with the tax authority of the country or territory in which such entity is resident, on or before the date specified in the said sub-section and the following conditions are satisfied, namely:- (a) the report is required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) The provisions of this section shall be applied in accordance with such guidelines and subject to such conditions, as may be prescribed. (9) For the purposes of this section,- (a) accounting year means,- (i) a previous year, in a case where the parent entity or alternate reporting entity is resident in India; or (ii) 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, in any other case; (b) agreement means an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A or any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the accounting standards of the country or territory of which the parent entity is resident; or (ii) would have been required to be prepared had the equity shares of any of the enterprises were listed on a stock exchange in the country or territory of which the parent entity is resident; (f) consolidated financial statement means the financial statement of an international group in which the assets, liabilities, income, expenses and cash flows of the parent entity and the constituent entities are presented as those of a single economic entity; (g) international group means any group that includes,- (i) two or more enterprises which are resident of different countries or territories; or (ii) an enterprise, being a resident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y, that is required to furnish a report of the nature referred to in sub-section (2); (l) systemic failure with respect to a country or territory means that the country or territory has an agreement with India providing for exchange of report of the nature referred to in sub-section (2), but- (i) in violation of the said agreement, it has suspended automatic exchange; or (ii) has persistently failed to automatically provide to India the report in its possession in respect of any international group having a constituent entity resident in India. - Clause 110 of the Bill seeks to insert a new section 286 in the Income-tax Act relating to furnishing of report in respect of international group. The proposed section provides fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... constituent entities referred to in sub-section (4) shall not be required to furnish the report. Sub-section (6) of the proposed new section provides that the prescribed authority may, by issuance of notice for the purpose of verifying the accuracy of the report furnished by any entity, require submission of information and document as specified in the notice Sub-section (7) of the proposed new section provides that the reporting requirement under this section shall not apply to an accounting year, if the total consolidated group revenue for the accounting year preceding it, does not exceed the prescribed threshold. Sub-section (8) of the proposed new section provides for application of the section in accordance with such guidelin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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