CBDT resolves disputes under Mutual Agreement Procedure (MAP) of Tax Treaties !!
The Central Board of Direct Taxes (CBDT) has resolved 180 cases through a Mutual Agreement Procedure (MAP).
The total amount of income locked- up in dispute in these cases is approximately Rs. 5,000 crore.
The resolved cases pertain to various sectors of the economy like software services, IT enabled services, manufacturing and consultancy services, etc.
The countries with which cases have been resolved are USA, Japan, United Kingdom and China.
MAP has emerged as an effective alternative tax dispute resolution mechanism.
In the last two years, increased focus on MAP has resulted in resolution of large number of disputes relating to double taxation.
Double Taxation Avoidance Agreements (DTAAs) i.e. Tax Treaties signed by India with various countries contain an Article to relieve taxpayers from double taxation through a Mutual Agreement Procedure (MAP).
The MAP program is led by one or more Competent Authorities designated by the signatory countries to resolve tax disputes under the provisions of each treaty.
About CBDT:
The Central Board of Direct Taxes (CBDT) provides essential inputs for policy and planning of direct taxes in India and is also responsible for administration of the direct tax laws through Income Tax Department.
The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963.