CBDT signs MoU with CBIC for smooth bilateral data exchange

The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) signed a Memorandum of Understanding (MoU) for exchange of information.

Objective of signing the MoU:

• The Memorandum of Understanding (MoU) will facilitate the sharing of data and the information between CBIC and CBDT on an automatic and regular basis.
• In addition to this, both the organisations will also have to exchange any information that will be available in their respective databases and which may have utility for other organisation.
• As per the CBDT Spokesperson, Surabhi Ahluwalia, this marks the beginning of a new era of cooperation and synergy between CBIC and CBDT.

Background:

• The latest MoU supersedes the earlier MoU that was signed between CBDT and the erstwhile Central Board of Excise and Customs (CBEC), in 2015.
• As per the statement, significant developments have taken place since the earlier MoU was signed in 2015.
• The developments include the incorporation of GST Network, the introduction of Goods and Services Tax (GST), and change in the nomenclature of CBEC to the Central Board of Indirect Taxes and Customs (CBIC).

CBDT to share with MSMEs

• Under Section 138 Income Tax act, CBDT will share data regarding sales of plant and machinery.
• The CBDT will soon start sharing data regarding sales, depreciation, gross turnover of MSMEs with the Ministry of MSMEs.
• This is highly important as GoI has MSMEs in its high priority list. The MSMEs were badly affected due to COVID-19. Hence, GoI is now all set to boost the sector under Atma Nirbhar Bharat Abhiyan.

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