CBDT invites comments on the draft notification for framing of rules for the amendments made by the Taxation Laws(Amendment) Act, 2021. Suggestions can be furnished at ustpl1@nic.in latest by 4th September 2021.
The government has enacted The Taxation Laws (Amendment) Act, 2021 on 13th August, 2021 to provide that no tax demand shall be raised in future on the basis of the amendment to section 9 of the Income-tax Act made vide Finance Act, 2012 for any offshore indirect transfer of Indian assets if the transaction was undertaken before 28th May, 2012 (i.e., the date on which the Finance Bill, 2012 received the assent of the President).
With this amendment, the government is aiming to settle the tax disputes with Cairn Energy Plc and the Vodafone Group and 15 other entities.
The Taxation Laws (Amendment) Bill, 2021 was passed by the Rajya Sabha on 9th August 2021. It had been passed by the Lok Sabha on 6th August 2021 and was introduced by the Finance Minister on 5th August 2021 in the Lok Sabha. The Bill has received the assent of the President on 13th August 2021.
The Taxation Laws (Amendment) Act, 2021 (34 of 2021) has revoked the retrospective applicability of the amendments made in Section 9 of the Income-tax Act by the Finance Act, 2012 and section 119 of the Finance Act, 2012. The amendments related to tax any indirect transfer of Indian assets shall be applicable prospectively from 28th May 2012.
The Taxation Laws (Amendment) Act, 2021 has three Chapters and contains three sections.
The Amendment Act of 2021 also empowers the CBDT to make rules to provide the form and manner in which an undertaking shall be submitted.
The Board has, by exercising these powers, released the draft Rules and invites various stakeholders comments on the same by 04.09.2021.
In this regard, a press note is released by the CBDT on 28th August 2021.
Update:
The Press Release reads as follows-
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 28th August, 2021
PRESS RELEASE
Framing of rules for the amendments made by the Taxation Laws(Amendment) Act, 2021
The Taxation Laws (Amendment) Act, 2021 (2021 Act), which received the assent of the President on the 13th August, 2021, has, inter-alia, amended the Income-tax Act, 1961 (Income-tax Act ) so as to provide that no tax demand shall be raised in future on the basis of the amendment to section 9 of the Income-tax Act made vide Finance Act, 2012 for any offshore indirect transfer of Indian assets if the transaction was undertaken before 28th May, 2012 (i.e., the date on which the Finance Bill, 2012 received the assent of the President).
The amendment made by 2021 Act also provides that the demand raised for offshore indirect transfer of Indian assets made before 28th May, 2012 (including the validation of demand provided under Section 119 of the Finance Act 2012) shall be nullified on fulfillment of specified conditions such as withdrawal or furnishing of undertaking for withdrawal of pending litigation and furnishing of an undertaking to the effect that no claim for cost, damages, interest, etc. shall be filed and such other conditions are fulfilled as may be prescribed. The amount paid/collected in these cases shall be refunded, without any interest, on fulfillment of the said conditions.
The aim of the amendment made by the 2021 Act is to bring tax certainty and ensure that once specified conditions are fulfilled, the pending Income-tax proceedings shall be withdrawn, demand, if any, raised shall be nullified, and amount, if any, collected shall be refunded to the taxpayer without any interest. To implement the amendment made by 2021 Act, draft rules have been prepared to amend the Income-tax Rules, 1962 which specify the conditions to be fulfilled and the process to be followed to give effect to the amendment made by the 2021 Act.
The draft notification containing the proposed rules is placed in public domain and can be accessed at www.incometaxindia.gov.in.
Suggestions/comments on the draft notification are invited from all stakeholders and the public and can be furnished electronically at the email address ustpl1@nic.in latest by 4th September, 2021.
(Surabhi Ahluwalia)
Commissioner of Income Tax
(Media & Technical Policy)
Official Spokesperson, CBDT
 Act, 2021){kind=link}
0 Comments