The government has amended income tax rules as per which Indian authorities would “endeavour” to resolve mutual agreement procedure (MAP) disputes within a timeframe of 24 months, a move aimed at speedy settlement of cases of multinational corporations that have opted the alternative dispute resolution process. The Central Board of Direct Taxes (CBDT) has amended Rule 44G dealing with application and procedure for giving effect to MAP agreement, and also revised Form 34F with respect to making application to the competent authority for invoking MAP. MAP is an alternative dispute resolution process under the tax treaties, under which competent authorities of two countries enter into discussions to resolve tax-related disputes. As many as 600 tax disputes were resolved under MAP between April 1, 2014, and December 31, 2018. “The competent authority in India shall endeavour to arrive at a mutually agreeable resolution of the tax disputes…in accordance with the agreement between India and the other country or specified territory within an average time period of twenty-four months,” according to the amended income tax rule.

(Moneycontrol)