CBDT RULES ON DISPUTE RESOLUTION PANELS

The Central Board of Direct Taxes (CBDT) has come out with the basic ground rules for the functioning of Dispute Resolution Panels (DRP). The concept of DRPs was announced in Budge 2009-10 to ensure faster resolution of transfer pricing and other international tax related disputes. The rules deal with aspects such as the places where the DRPs would be set up, its jurisdiction, constitution, manner of approaching it, procedure relating to the hearings etc. The DRP is basically a collegium of three commissioners. The orders of the DRP are binding on the Revenue Department. The Centre proposes to constitute eight panels across major cities - Delhi, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad, Pune and Hyderabad.