AMENDMENT IN RULE 21AB AND INSERTION OF FORM 10F NOTIFICATION NO. 57/2013 [F.NO.142/16/2013-TPL]/SO 2331(E), DATED 1-8-2013

INCOME-TAX (ELEVENTH AMENDMENT) RULES, 2013 – AMENDMENT IN RULE 21AB AND INSERTION OF FORM 10F

NOTIFICATION NO. 57/2013 [F.NO.142/16/2013-TPL]/SO 2331(E), DATED 1-8-2013

In exercise of the powers conferred by section 90 and section 90A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—

1. (1) These rules may be called the Income-tax (11th Amendment) Rules, 2013.

(2) They shall be deemed to have come into force with effect from the 1st day of April, 2013.

2. In the Income-tax Rules, 1962,—

(a)

in rule 21AB, for sub-rules (1) and (2), the following sub-rules shall be substituted namely:—
“(1) Subject to the provisions of sub-rule (2), for the purposes of sub-section (5) of section 90 and sub-section (5) of section 90A , the following information shall be provided by an assessee in Form No. 10F, namely:—

(i)

Status (individual, company, firm etc.) of the assessee;

(ii)

Nationality (in case of an individual) or country or specified territory of incorporation or registration (in case of others);

(iii)

Assessee’s tax identification number in the country or specified territory of residence and in case there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the asseessee claims to be a resident;

(iv)

Period for which the residential status, as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A, is applicable; and

(v)

Address of the assessee in the country or specified territory outside India, during the period for which the certificate, as mentioned in (iv) above, is applicable.
(2) The assessee may not be required to provide the information or any part thereof referred to in sub-rule (1) if the information or the part thereof, as the case may be, is contained in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A.
(2A) The assessee shall keep and maintain such documents as are necessary to substantiate the information provided under sub-rule (1) and an income-tax authority may require the assessee to provide the said documents in relation to a claim by the said assessee of any relief under an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A, as the case may be.”;

(b)

in Appendix II, after Form No. 10E, the following Form shall be inserted, namely:-

“FORM NO. 10F

[See sub-rule (1) of rule 21AB]

Information to be provided under sub-section (5) of section 90 or

sub-section (5) of section 90A of the Income-tax Act, 1961

I……………………………… *son/daughter of Shri……………………………… in the capacity of ……………………………… (designation) do provide the following information, relevant to the previous year……………………………… *in my case/in the case of……………………………… for the purposes of sub-section (5) of * section 90/section 90A:—

SI.No.

Nature of information

:

Details#

(i)

Status (individual; company, firm etc.) of the assessee

:

(ii)

Permanent Account Number (PAN) of the assessee if allotted

:

(iii)

Nationality (in the case of an individual) or Country or specified territory of incorporation or registration (in the case of others)

:

(iv)

Assessee’s tax identification number in the country or specified territory of residence and if there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the assessee claims to be a resident

:

(v)

Period for which the residential status as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A is applicable

:

(vi)

Address of the assessee in the country or territory outside India during the period for which the certificate, mentioned in (v) above, is applicable

:

2. I have obtained a certificate to in sub-section (4) of section 90 of sub-section (4) of section 90A from the Government of ……………………………… (name of country or specified territory outside India)

Signature: ………………………………

Name: ………………………………

Address: ………………………………

Permanent Account Number: ………………………………

Verification

I……………………………… do hereby declare that to the best of my knowledge and belief what is stated above is correct complete and is truly stated.

Verified today the ……………………………… day of………………………………

………………………………

Signature of the person providing the information

Place: ………………………………

Notes :

1. *Delete whichever is not applicable.

2. #Write N.A. if the relevant information forms part of the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A.

Reference: Section 90 of the income Tax Act, 1961

Agreement with foreign countries or specified territories.

. (1) The Central Government may enter into an agreement with the Government of any country outside India or specified territory outside India,—

(a)  for the granting of relief in respect of—

 (i)  income on which have been paid both income-tax under this Act and income-tax in that country or specified territory, as the case may be, or

(ii)  income-tax chargeable under this Act and under the corresponding law in force in that country or specified territory, as the case may be, to promote mutual economic relations, trade and investment, or

(b)  for the avoidance of double taxation of income under this Act and under the corresponding law in force in that country or specified territory, as the case may be, or

(c)  for exchange of information for the prevention of evasion or avoidance of income-tax chargeable under this Act or under the corresponding law in force in that country or specified territory, as the case may be, or investigation of cases of such evasion or avoidance, or

(d)  for recovery of income-tax under this Act and under the corresponding law in force in that country or specified territory, as the case may be,

and may, by notification in the Official Gazette, make such provisions as may be necessary for implementing the agreement.

(2) Where the Central Government has entered into an agreement with the Government of any country outside India or specified territory outside India, as the case may be, under sub-section (1) for granting relief of tax, or as the case may be, avoidance of double taxation, then, in relation to the assessee to whom such agreement applies, the provisions of this Act shall apply to the extent they are more beneficial to that assessee.

The following sub-section (2A) shall be inserted after sub-section (2) of section 90 by the Finance Act, 2013, w.e.f. 1-4-2016 :

(2A) Notwithstanding anything contained in sub-section (2), the provisions of Chapter X-A of the Act shall apply to the assessee even if such provisions are not beneficial to him.

(3) Any term used but not defined in this Act or in the agreement referred to in sub-section (1) shall, unless the context otherwise requires, and is not inconsistent with the provisions of this Act or the agreement, have the same meaning as assigned to it in the notification issued by the Central Government in the Official Gazette in this behalf.

 [(4) An assessee, not being a resident, to whom an agreement referred to in sub-section (1) applies, shall not be entitled to claim any relief under such agreement unless  [a certificate of his being a resident] in any country outside India or specified territory outside India, as the case may be, is obtained by him from the Government of that country or specified territory.]

 [(5) The assessee referred to in sub-section (4) shall also provide such other documents and information, as may be prescribed.]

Explanation 1.—For the removal of doubts, it is hereby declared that the charge of tax in respect of a foreign company at a rate higher than the rate at which a domestic company is chargeable, shall not be regarded as less favourable charge or levy of tax in respect of such foreign company.

Explanation 2.—For the purposes of this section, “specified territory” means any area outside India which may be notified as such by the Central Government.]

 [Explanation 3.—For the removal of doubts, it is hereby declared that where any term is used in any agreement entered into under sub-section (1) and not defined under the said agreement or the Act, but is assigned a meaning to it in the notification issued under sub-section (3) and the notification issued thereunder being in force, then, the meaning assigned to such term shall be deemed to have effect from the date on which the said agreement came into force.]

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