Companies headquartered in the US but having operations and taxability in India now need not file country-by-country (CbC) reports in India, according to a pact signed between India’s tax department and the US authorities.
In a press release, the Central Board of Direct Taxes (CBDT) has clarified that for such international companies, filing CbC reports in the US would be sufficient.
These would then be shared with the Indian tax authority, the CBDT, under an information-sharing agreement which will be signed between the countries before the end of the fiscal year. This will reduce the compliance burden on firms. The deadline for furnishing the CbC report was earlier extended.