CBDT, CBIC sign MoU to facilitate exchange of information on regular basis

A memorandum of understanding has been signed between the direct and indirect tax boards to exchange data with each other.

The MoU between the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) replaces the one signed between the former and erstwhile Central Board of Excise and Customs (CBEC).

The CBIC came into existence after the introduction of the goods and services tax (GST) on July one, 2017.

The finance ministry said important developments such as the incorporation of GST Network and advancement of technology have duly been incorporated in the MoU.

The MoU will facilitate the exchange of information between the two boards on an automatic and regular basis, besides any other information on request.

S R Patnaik, partner at Cyril Amarchand Mangaldas said the move is bound to cause concern for the taxpayers.  "The actual issue will depend on the level of exchange that takes place between the two agencies. However, companies have to be careful while disclosing information with either of the agencies as they will also have to be prepared that such information may be shared with the other agency,"