Indian arms of US MNCs will not have to file country by country or CbC report here. India has finalized bilateral competent authority arrangement for exchange of CbC reports with US.

These companies would have had to file these here with Indian revenue authorities by March 31, 2019 in absence of such an agreement.

They will now need to merely intimate them of such CbC reports having been filed by their respective parent entities in the USA.

“This would enable both the countries to exchange CbC Reports filed by the ultimate parent entities of International Groups in the respective jurisdictions, pertaining to the financial years commencing on or after 1st January, 2016”, a Central Board of Direct Taxes statement said on Friday.

“This development is clearly in line with the government’s initiative of ease of doing business and reducing the overall compliance burden in India,” said Nitin Narang, Partner- Transfer Pricing, Nangia Advisors (Andersen Global).