286. (1) Every constituent entity resident in India,
shall, if it is constituent of an international group, the
parent entity of which is not resident in India, notify the
prescribed income-tax authority (herein referred to as
prescribed authority) in the form and manner, on or before
such date, as may be prescribed,-
(a) whether it is the alternate reporting entity of the
international group; or
(b) the details of the parent entity or the alternate
reporting entity, if any, of the international group, and
the country or territory of which the said entities are
resident.
(2) Every parent entity or the alternate reporting entity,
resident in India, shall, for every reporting accounting
year, in respect of the international group of which it is a
constituent, furnish a report, to the prescribed authority
within a period of twelve months from the end of the said
reporting accounting year, in the form and manner as may be
prescribed.
(3) For the purposes of sub-section (2) and sub-section
(4), the report in respect of an international group shall
include,-
(a) the aggregate information in respect of the amount of
revenue, profit or loss before income-tax, amount of
income-tax paid, amount of income-tax accrued, stated
capital, accumulated earnings, number of employees and
tangible assets not being cash or cash equivalents, with
regard to each country or territory in which the group
operates;
(b) the details of each constituent entity of the group
including the country or territory in which such constituent
entity is incorporated or organised or established and the
country or territory where it is resident;
(c) the nature and details of the main business activity or
activities of each constituent entity; and
(d) any other information as may be prescribed.
(4) A constituent entity of an international group, resident
in India, other than the entity referred to in sub-section
(2), shall furnish the report referred to in the said
sub-section, in respect of the international group for a
reporting accounting year within the period as may be
prescribed, if the parent entity is resident of a country or
territory,-
(a) where the parent entity is not obligated to file the
report of the nature referred to in sub-section (2);
(aa) with which India does not have an agreement providing
for exchange of the report of the nature referred to in
sub-section (2); or
(b) there has been a systemic failure of the country or
territory and the said failure has been intimated by the
prescribed authority to such constituent entity:
Provided that where there are more than one such constituent
entities of the group, resident in India, the report shall
be furnished by any one constituent entity, if,-
(a) the international group has designated such entity to
furnish the report in accordance with the provisions of
sub-section (2) on behalf of all the constituent entities
resident in India; and
(b) the information has been conveyed in writing on behalf
of the group to the prescribed authority.
(5) Nothing contained in sub-section (4) shall apply, if, an
alternate reporting entity of the international group has
furnished a report of the nature referred to in sub-section
(2), with the tax authority of the country or territory in
which such entity is resident, on or before the date
specified by that country or territory and the following
conditions are satisfied, namely:-
(a) the report is required to be furnished under the law for
the time being in force in the said country or territory;
(b) the said country or territory has entered into an
agreement with India providing for exchange of the said
report;
(c) the prescribed authority has not conveyed any systemic
failure in respect of the said country or territory to any
constituent entity of the group that is resident in India;
(d) the said country or territory has been informed in
writing by the constituent entity that it is the alternate
reporting entity on behalf of the international group; and
(e) the prescribed authority has been informed by the entity
referred to in sub-section (4) in accordance with
sub-section (1).
(6) The prescribed authority may, for the purposes of
determining the accuracy of the report furnished by any
reporting entity, by issue of a notice in writing, require
the entity to produce such information and document as may
be specified in the notice within thirty days of the date of
receipt of the notice:
Provided that the prescribed authority may, on an
application made by such entity, extend the period of thirty
days by a further period not exceeding thirty days.
(7) The provisions of this section shall not apply in
respect of an international group for an accounting year, if
the total consolidated group revenue, as reflected in the
consolidated financial statement for the accounting year
preceding such accounting year does not exceed the amount,
as may be prescribed.
(8) The provisions of this section shall be applied in
accordance with such guidelines and subject to such
conditions, as may be prescribed.
(9) For the purposes of this section,-
(a) "accounting year" means,-
(i) a previous year, in a case where the parent entity
33[***] is resident in India; or
(ii) an annual accounting period, with respect to which the
parent entity of the international group prepares its
financial statements under any law for the time being in
force or the applicable accounting standards of the country
or territory of which such entity is resident, in any other
case;
(b) "agreement" means a combination of all of the following
agreements, namely:-
(i) an agreement entered into under sub-section (1) of
section 90 or sub-section (1) of section 90A; and
(ii) an agreement for exchange of the report referred to in
sub-section (2) and notified by the Central Government;
(c) "alternate reporting entity" means any constituent
entity of the international group that has been designated
by such group, in the place of the parent entity, to furnish
the report of the nature referred to in sub-section (2) in
the country or territory in which the said constituent
entity is resident on behalf of such group;
(d) "constituent entity" means,-
(i) any separate entity of an international group that is
included in the consolidated financial statement of the said
group for financial reporting purposes, or may be so
included for the said purpose, if the equity share of any
entity of the international group were to be listed on a
stock exchange;
(ii) any such entity that is excluded from the consolidated
financial statement of the international group solely on the
basis of size or materiality; or
(iii) any permanent establishment of any separate business
entity of the international group included in sub-clause (i)
or sub-clause (ii), if such business unit prepares a
separate financial statement for such permanent
establishment for financial reporting, regulatory, tax
reporting or internal management control purposes;
(e) "group" includes a parent entity and all the entities in
respect of which, for the reason of ownership or control, a
consolidated financial statement for financial reporting
purposes,-
(i) is required to be prepared under any law for the time
being in force or the accounting standards of the country or
territory of which the parent entity is resident; or
(ii) would have been required to be prepared had the equity
shares of any of the enterprises were listed on a stock
exchange in the country or territory of which the parent
entity is resident;
(f) "consolidated financial statement" means the financial
statement of an international group in which the assets,
liabilities, income, expenses and cash flows of the parent
entity and the constituent entities are presented as those
of a single economic entity;
(g) "international group" means any group that includes,-
(i) two or more enterprises which are resident of different
countries or territories; or
(ii) an enterprise, being a resident of one country or
territory, which carries on any business through a permanent
establishment in other countries or territories;
(h) "parent entity" means a constituent entity, of an
international group holding, directly or indirectly, an
interest in one or more of the other constituent entities of
the international group, such that,-
(i) it is required to prepare a consolidated financial
statement under any law for the time being in force or the
accounting standards of the country or territory of which
the entity is resident; or
(ii) it would have been required to prepare a consolidated
financial statement had the equity shares of any of the
enterprises were listed on a stock exchange,
and, there is no other constituent entity of such group
which, due to ownership of any interest, directly or
indirectly, in the first mentioned constituent entity, is
required to prepare a consolidated financial statement,
under the circumstances referred to in sub-clause (i) or
sub-clause (ii), that includes the separate financial
statement of the first mentioned constituent entity;
(i) "permanent establishment" shall have the meaning
assigned to it in clause (iiia) of section 92F;
(j) "reporting accounting year" means the accounting year in
respect of which the financial and operational results are
required to be reflected in the report referred to in
sub-sections (2) and (4);
(k) "reporting entity" means the constituent entity
including the parent entity or the alternate reporting
entity, that is required to furnish a report of the nature
referred to in sub-section (2);
(l) "systemic failure" with respect to a country or
territory means that the country or territory has an
agreement with India providing for exchange of report of the
nature referred to in sub-section (2), but-
(i) in violation of the said agreement, it has suspended
automatic exchange; or
(ii) has persistently failed to automatically provide to
India the report in its possession in respect of any
international group having a constituent entity resident in
India.