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FinMin to issue rules fo rnorms under BEPS

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The finance ministry will issue rules and guidance to address some concerns and ambiguity over mandatory reporting norms with respect to transfer pricing formultinational companies whose consolidated annual revenue is over Rs.5,000crore.
The government is also steppingup administrative systems to plug possible data leakage,said a senior tax office rata conference on Friday.
These rules and guidance will aimat clarity on the extensive data reporting and document ation required under the Base Erosion and Profit Shifting (BEPS)measures unveiled by the Paris-based OECD grouping in October last year,to address tax avoidance by MNCs.OECD is Organization for Economic Cooperation and Development.
The concerns are on confidentiality of the data shared by companies with the tax author ities of various jurisdictions, beside the difference in accounting years and rules in differentcountries.The matter was discussed at the conference on Friday.
Akhilesh Ranjan,a senior income tax officer,said:"The concerns on accounting years, joint ventures and permanent establishment are genuine and a guidance note is under preparation.That and the rules will be issued in a couple of months." He was responding to Mohd Haroon Qureshi,head of tax, Asia-Pacific,atGenpact,who raised a slew of concerns.
"There are concerns that are yet to be addressed.There will be so much data.There is going to beamis match of countries with respect to their accounting rules, currencies and the accounting years be ingused," said Qureshi.
He noted that tax officers may even ask for reconciliation documents,though BEPS does not ask for it.Called the new world order in taxation, BEPS will require Indian companies with foreign presence and consolidated annual revenue of overRs.5,000 crore in the previous year to furnish country-by-country reports (CBCR) to the Indian tax department,a master file and local file directly to the tax authorities of each country of operation.
Business Standard New Delhi,15th October 2016

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