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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 ..... Erosion and Profit Shifting (BEPS) Project. One of the minimum standards 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 ru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with which the foreign resident enters into a transaction for which a preferential treatment is granted, is a 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 cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruling or c. the related party with which the foreign resident enters into a transaction that is covered by the cross-border ruling providing for a downward 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. t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be examined and necessary action, if required, may then be taken on a case-to-case basis. Further information, if required in relation to any of the template can be obtained from the ruling issuing jurisdiction 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 templat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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