The Central Board of Direct Taxes (CBDT) has signed a Memorandum of Understanding (MoU) with the Central Board of Indirect Taxes (CBIC) to facilitate an agreement for the exchange of data between the two organisations. The MoU was signed by Shri Pramod Chandra Mody, the Chairman of the CBDT, and Shri M. Ajit Kumar, the Chairman of the CBIC on the 21st of July 2020.
There had been an MoU formerly in place between the CBDT and the erstwhile Central Board of Excise and Customs (CBEC), which was signed in the year 2015. However, the new MoU will now supersede the existing MoU and will facilitate the sharing of data on a regular and automatic basis.
The Ministry of Finance said in a release, “Significant developments have taken place since the signing of earlier MoU in 2015 including the introduction of GST, incorporation of GSTN and change in the nomenclature of Central Board of Excise and Customs (CBEC) to Central Board of Indirect Taxes and Customs (CBIC). Changed circumstances, including advancements in technology, are duly incorporated in the MoU signed today.”
Besides the regular exchange of data, the sharing of data from the respective databases, which may have relevance for either organisation will take place, both on request and spontaneously. The release further stated that a Data Exchange Steering Group had been constituted to periodically meet and review the data exchange status to improve the effectiveness of the mechanism.
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Athena is a globe-trotter whose aim is to see 30 countries before she’s 30. When she’s not travelling, she’s busy planning her next trip. She’s a Chartered Accountant by profession with a keen focus on GST. She writes by day and reads by night.