++ where the parent entity is not obligated to file the CbC Report;

++ with which India does not have an agreement providing for exchange of the CbC Report; or

++ where there has been a systemic failure of the country or territory and the said failure has been intimated by the prescribed authority to such constituent entity.

Vide Notification in GSR 1217 (E) dated 18th  December, 2018 with effect from 18th  December, 2018, amendments to the Income-tax Rules. 1962 (the "Rules") have been carried out to provide that the period for furnishing of the CbC report (local filing) shall be 12 months from the end of the reporting accounting year.

Further, vide Circular No.9/2018, dated 26th  December, 2018, CBDT as a one-time measure, in exercise of powers conferred under section 119 of the Act, extended the period for furnishing of the CbC Report (local filing) in respect of reporting accounting years ending on or before 28th  February, 2018 up to 31st  March, 2019.

The absence of an Agreement between India and USA till now entailed a possibility of local filing of CbC Reports in India. However, a Bilateral Competent Authority Arrangement, along with an underlying Inter-Governmental Agreement, for exchange of CbC Reports between India and the USA has now been finalized and will be signed on or before 31st  March, 2019. This would enable both the countries to exchange CbC Reports filed by the ultimate parent entities of International Groups in the respective jurisdictions, pertaining to the financial years commencing on or after 1st  January, 2016. As a result, Indian constituent entities of international groups headquartered in USA, who have already filed CbC Reports in the USA, would not be required to do local filing of the CbC Reports of their international groups in India.