Pre-filling Consultation [ Rule 10G & 10H ] - International Taxation - Income Tax

Pre-filling Consultation [ Rule 10G 10H] Persons eligible to apply - Any person who has undertaken an international transaction or is contemplating to undertake an international transaction, shall be eligible to enter into an agreement under these rules. [ Rule 10G ] Pre-filling Consultation [ Rule 10H ] Any person proposing to enter into an agreement under these rules may, by an application in writing, make a request for a pre-filing consultation. [ Rule 10H(1) ] The request for pre-filing consultation shall be made in Form No. 3CEC to the DGIT (International Taxation). [ Rule 10H(2) ] On receipt of the request in Form No. 3CEC, the team shall hold pre-filing consultation with the person referred to in rule 10G . [ Rule 10H(3) ] The competent authority in India or his representative shall be associated in pre-filing consultation involving bilateral or multilateral agreement. [ Rule 10H(4) ] The pre-filing consultation shall, among other things,- ( i ) determine the scope of the agreement; ( ii ) identify transfer pricing issues like FAR Analysis ; ( iii ) determine the suitability of international transaction for the agreement; ( iv ) discuss broad terms of the agreement. [ Rule 10H(5) ] The pre-filing consultation shall- ( i ) not bind the Board or the person to enter into an agreement or initiate the agreement process; ( ii ) not be deemed to mean that the person has applied for entering into an agreement. [ Rule 10H(6) ] Other Relevant Point The request for pre filing consultation is required to be in Form No 3CEC. The form is self-explanatory. However, the following guidance is provided with respect to some of the items: Serial no 2 requires global structure of the applicant group. It will be useful if this global structure is presented in the form of flow chart/diagram. This may be omitted, if the request is on anonymous basis. However, in that case this detail must subsequently be submitted with formal APA application in Form 3CED , in case that application is filed. Serial no 3 requires names of all the associated enterprises with which international transactions have either been undertaken or proposed to be undertaken. The applicant is required to provide the names of AEs and the nature of international transaction undertaken in last three years or proposed to be undertaken. The name of the associated enterprise may be omitted if the request is on anonymous basis. However, in that case this detail must subsequently be submitted with formal APA application in Form 3CED , in case that application is filed. Serial no 6 requires functional and risk profile of the applicant and the associated enterprise. It will be useful if detailed FAR analysis is provided for the applicant and the associated enterprise with respect to the international transaction sought to be covered in the APA application.