India’s Central Board of Direct Taxes (CBDT) has issued draft tax regulations on the indirect transfer abroad of Indian assets and has requested stakeholder feedback on guidance to implement India’s general antiavoidance rules (GAAR).
The guidance on indirect transfers implements Section 9 of the Income-tax Act, 1961, which provides that income arising from indirect transfers of assets situated in India is deemed to accrue or arise in India. The guidance deals with the method of determining the fair market value of the transfer and with reporting requirements. Feedback on the proposed rules should be submitted by May 29.
Also, in a notice dated May 27, the CBDT requested taxpayer input to assist the goverment as it prepares guidance on India’s GAAR.
The CBDT said it is interested in learning about taxpayers’ concerns regarding the application of GAAR to real life structures and arrangements. Feedback on this consultation is due June 30.
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