MM TAX CLUB

The Central Board of Direct Taxes (CBDT) has entered into a record 125 Advance Pricing Agreements (APAs) in FY 2023-24 with Indian taxpayers. This includes 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs). This marks the highest ever APA signings in any financial year since the launch of the APA programme. The number of APAs signed in FY 2023-24 also represents a 31% increase compared to the 95 APAs signed during the preceding financial year. With this, the total number of APAs since inception of the APA programme has gone up to 641, comprising 506 UAPAs and 135 BAPAs.

During FY 2023-24 CBDT also signed the maximum number of BAPAs in any financial year till date. The BAPAs were signed as a consequence of entering into Mutual Agreements with India’s treaty partners namely Australia, Canada, Denmark, Japan, Singapore, the UK and the US.

The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for a maximum of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years, as a result of which, tax certainty is provided for nine years. The signing of bilateral APAs additionally provides the taxpayers with protection from any anticipated or actual double taxation.

The APA programme has contributed significantly to the Government of India’s mission of promoting ease of doing business, especially for Multi National Enterprises () which have a large number of cross-border transactions within their group entities.

In exercise of the powers conferred by sub-section (3) of section 8 of the Recovery of Debts and Bankruptcy Act, 1993 (51 of 1993), the Central Government hereby authorises the Chairperson of the Debts Recovery Appellate Tribunal, Chennai to discharge also the functions of the Chairperson of the Debts Recovery Appellate Tribunal, Mumbai for deciding the appeal in the matter of ‘Juana Sanjeev Uppal vs Indus Mechanical Engg. Co. Pvt. Ltd. (Misc. Appeal No. 135 of 2023 and its connected proceedings)’, and Urmila & Co. Ltd. in the matter between Union Bank of India vs Indus Mechanical Engg. Co. Pvt. Ltd. & Anr. (Misc. Appeal No. 146 of 2023 and its connected proceedings) in addition to his being the Chairperson of the Debts Recovery Appellate Tribunal, Chennai.

The Government of India (GoI) has announced the sale (issue/ re-issue) of (i) “7.37% Government Security 2028” for a notified amount of Rs. 12,000 crore (nominal) through price based auction using multiple price method, and (ii) “New Government Security 2064” for a notified amount of Rs. 12,000 crore (nominal) through yield based auction using multiple price method. GoI will have the option to retain additional subscription up to Rs. 2,000 crore against each security mentioned above. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on April 19, 2024 (Friday).

Up to 5% of the notified amount of the sale of the securities will be allotted to eligible individuals and institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on April 19, 2024. The non-competitive bids should be submitted between 10:30 a.m. and 11:00 a.m. and the competitive bids should be submitted between 10:30 a.m. and 11:30 a.m.

The result of the auctions will be announced on April 19, 2024 (Friday) and payment by successful bidders will be on April 22, 2024 (Monday).

The Securities will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2018-19/25 dated July 24, 2018 as amended from time to time.

The CBIC issued Notification No. 09/2024 - Central Tax dated April 12, 2024, amending the earlier notification No. 83/2020 dated November 10, 2020. This amendment extends the deadline for furnishing the details of outward supplies in FORM GSTR-1 for month of March 2024, to April 12, 2024.

In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Commissioner, on the recommendations of the Council, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 83/2020 – Central Tax, dated the 10th November, 2020, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 699(E), dated the 10th November, 2020, namely:–

In the said notification, after the fourth proviso, the following proviso shall be inserted, namely:-

“Provided also that the time limit for furnishing the details of outward supplies in FORM GSTR-1 of the said rules for the registered persons required to furnish return under sub-section (1) of section 39 of the said Act, other than the registered persons who are required to furnish return under proviso of the said sub-section, for the tax period March, 2024, shall be extended till the twelfth day of April, 2024.”

2. This notification shall be deemed to have come into force with effect from the 11th day of April, 2024..