New forms to gather information on transfer pricing & international transactions
25th November, 2011
The Central Board for Direct Taxes (CBDT), India has invited suggestions and comments on devising a separate proforma for obtaining information in transfer pricing cases and changes in the existing proforma for information sought from countries with which India has DTAA or Tax Information Exchange Agreement (TIEA). The Indian Tax Administration, in its communication dated 21st November, 2011, has sought comments and suggestions by 15th December, 2011.
At present, the Indian tax authorities use a proforma or checklist under the provisions of "exchange of information" article of Double Taxation Avoidance Agreement (DTAA). This checklist elicits information on particular tax periods and taxes involved as also name and address details of tax payer whose liability is under investigation. The Department gives a declaration on use of such information for tax purpose. In the case of U.K., a separate proforma is used for requesting banking information as prescribed by the U.K. authorities.
The move to devise new forms is part of the initiatives for a deeper working relationship with OECD. India is not a member of the OECD but has significant participation initiatives like in the Committee of Fiscal Affairs and Task Force on Tax and Development. The OE CD is developing a model proforma for exchange of information between countries.