- A Memorandum of Understanding (MoU) was signed between the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) on 21st July 2020, for data exchange between the two organizations.
- The MoU comes into force immediately i.e.it will be effective from 21st July 2020.
- This MoU will facilitate the sharing of data and information between CBDT and CBIC on an automatic and regular basis.
- In addition to regular exchange of data, 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 organization.
- A Data Exchange Steering Group has also been constituted to review the
effectiveness of the data sharing mechanism between two organizations.
- The MoU marks the beginning of a new era of cooperation and synergy between the CBDT and CBIC.
- Earlier CBDT has entered similar MoU with SEBI and now CBDT has entered with the CBIC. This clearly brings out the intention of the government that, it is moving towards integration of data collected by various Government Organizations.
- Therefore, all the data and information filed by the taxpayer shall be uniform across all the filings made with all the statutory authorities to avoid any unncessary queries and notices from such statutory authorities.