India: Updated guidance for mutual agreement procedure (MAP)
Central Board of Direct Taxes (CBDT) issued updated guidance
Central Board of Direct Taxes (CBDT) issued updated guidance
The Central Board of Direct Taxes (CBDT) issued updated guidance concerning the mutual agreement procedure (MAP) to:
- Provide clarity on the consequences of the Vivad se Vishwas scheme* on MAP
- Add a new part on the responsibility of MAP applicants to make true and complete disclosures
KPMG observation
The MAP peer report on India issued by the Organisation for Economic Cooperation and Development (OECD) recommended that India ensure that taxpayers have access to MAP in cases in which taxpayers settle disputes under the Vivad se Vishwas scheme. The updated guidance is intended to meet this requirement.
Read an June 2022 report [PDF 402 KB] prepared by the KPMG member firm in India
*The Vivad se Vishwas scheme allows a taxpayer to settle disputes in various appellate forums, and to achieve the closure of cases when they are forced to litigate due to counter appeals by the tax administration at higher levels of judicial forums. Once a dispute is settled under the scheme, the taxpayer is entitled to protection from penalty proceedings. Read a KPMG report (2020).