The Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) signed a memorandum of understanding (MoU) for data exchange between the two organisations. 

The MoU was signed by Pramod Chandra Mody, chairman of CBDT, and M. Ajit Kumar, chairman of CBIC.

Why a new agreement?

This MoU supersedes the agreement signed between CBDT and the erstwhile Central Board of Excise and Customs (CBEC) in the year 2015. Significant developments have taken place since the signing of earlier MoU in 2015 including 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). 

What are the highlights of the agreement?

Changed circumstances, including advancements in technology, are duly incorporated in the MoU.

It will facilitate the sharing of data and information between CBDT and CBIC on an automatic and regular basis. 

CBDT and CBIC will also exchange with each other, on request and spontaneous basis, any information available in their respective databases which may have utility for the other organisation.

CBDT and CBIC are already collaborating through various existing mechanisms. A Data Exchange Steering Group has also been constituted for the initiative, which will meet periodically to review the data exchange status and take steps to further improve the effectiveness of the data sharing mechanism.

Central Board of Direct Taxes

The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963. CBDT functions as a division of the ministry of finance under the department of revenue. 

Its functions include formulation of policies, dealing with matters relating to levy and collection of direct taxes, and supervision of the functioning of the entire Income Tax department. 

CBDT also proposes legislative changes in direct tax enactments and changes in rates and structure of taxation in tune with the policies of the government.

The Board comprises the chairman and six members. The chairman and other members have been assigned territorial zones for the purpose of supervising and monitoring the work of field formations. 

Central Board of Indirect Taxes and Customs

Central Board of Indirect Taxes and Customs (erstwhile Central Board of Excise & Customs) is a part of the department of revenue under the ministry of finance. The Central Board of Excise & Customs (CBEC) was restructured as CBIC when GST was implemented in 2017.

It deals with the tasks of formulation of policy concerning levy and collection of customs, central excise duties, Central Goods & Services Tax and IGST, prevention of smuggling and administration of matters relating to customs, central excise, Central Goods & Services Tax, IGST and narcotics to the extent under CBIC’s purview. 

The Board is the administrative authority for its subordinate organisations, including Custom Houses, Central Excise and Central GST Commissionerates and the Central Revenues Control Laboratory.

CBDT signs pact with MSME ministry 

The income tax department will start sharing data on depreciation, sales and gross turnover of micro, small and medium enterprises as reported in their Income Tax Returns with the MSME ministry.

The Central Board of Direct Taxes (CBDT) has signed a memorandum of understanding (MoU) with the MSME ministry.

The CBDT in an order had directed the Principal Director General of Income Tax (Systems) to share information with the MSME ministry.

Section 138 of Income Tax Act empowers income tax authorities to share information/ details of its taxpayers with other government agencies, as may be notified.

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