New Delhi, May 7 (IANS) The Central Board of Direct Taxes has amended a rule to fastrack dispute resolution under a mutually agreeable procedure (MAP) provided in the tax treaties between India and the countries concerned.
The amendment will make it easier for assessees, particularly MNCs operating in the country, to resolve their dispute with the tax department in a time-bound manner under the terms of tax treaties existing between the two countries.
The CBDT has aamended the rule 44G of MAP that now provides that the competent authority in India will try to arrive at a mutually agreeable resolution of the tax disputes, in accordance with the agreement between the country and other nations, within 24 months.
If mutually agreeable dispute resolution is reached, the assessee should give consent, either accepting or rejecting the the resolution within 30 days.
Subsequently, the assessee will need to withdraw the the appeal and pay taxes as determined by the assessing officer.
The amended rule requires the competent authority in India to call for relevant records from the income tax authorities and assessee, and understand the actions taken by the authorities that are not in accordance with the terms of the agreements between India and the other country.
In this regard form 34F has also been revised as it will now seek details of remedy being sought by an assessee along with documentary evidence.
MAP is an alternative dispute resolution process under the tax treaties. Under it, competent authorities of respective countries enter into discussions to resolve the dispute which has arisen by any action of a tax authority not in accordance with the tax treaty.
–IANS
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