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TMI BlogTemplates of Rulings received from other jurisdictions under BEPS Action 5 - reg.X X X X Extracts X X X X X X X X Extracts X X X X ..... ndards that every participating jurisdiction has to achieve is to ensure a Transparency Framework for spontaneous exchange of rulings under BEPS Action 5. 2. As a part of this Transparency Framework, India is receiving templates containing information in respect of the following taxpayer-specific rulings from other jurisdictions: (i) rulings relating to preferential regimes; (ii) unilateral APAs or other cross-border unilateral rulings in respect of transfer pricing; (iii) cross-border rulings providing for a downward adjustment of taxable profits; (iv) permanent establishment (PE) rulings; (v) related party conduit rulings; (vi) Miscellaneous rulings which may be included at a later date as decided by the Forum on Harmful Tax Pract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resident in India, may be utilised to identify and assess the extent of economic activity actually reported in India and whether the income offered in India is commensurate to the same. 3.2. Unilateral APAs or other cross-border unilateral rulings in respect of transfer pricing: 3.2.1. In some countries, unilateral APAs can adjust profits both upwards and downwards from the starting position. In addition, unilateral APAs can set a future transfer pricing methodology or a future pricing or profit apportionment structure. In the aforementioned circumstances, Unilateral APA Rulings, in the absence of transparency, can create distortions and may lead to erosion of tax base. 3.2.2. On receipt of a template pertaining to a unilateral APA or ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nward adjustment of taxable profits, is resident in India, care has to be taken to ensure that there are no mismatches in how two ends of a transaction are priced and no profits go untaxed resulting in base erosion or profit shifting. 3.4. Permanent Establishment (PE) rulings; 3.4.1. Permanent Establishment Ruling shall usually determine or decide on the existence or absence of a PE or the attribution of profit to the PE. 3.4.2. On receipt of a template pertaining to a PE Ruling, wherein either, a. the ultimate parent of the taxpayer receiving the ruling, or b. the immediate parent of the taxpayer receiving the ruling or c. the head office of the taxpayer, is resident in India or the country where the PE is established is India, inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion through Exchange of Information on request. Instructions issued by the Board with respect to EoI from time to time may be referred to in this regard. 5. Maintaining the confidentiality of information received under the provisions of tax treaties is a legal requirement under the said tax treaties and is also an international obligation. All information received from the other jurisdictions through exchange of information, either on a spontaneous basis (templates) or on request basis (subsequent information relevant to the template) are subject to the requirements of confidentiality under the tax treaties with the respective jurisdictions. Detailed guidelines on maintaining confidentiality provided in Chapter-VII of Manual of Exchange of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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