MAP delayed is MAP denied
MAP guidance dated 7 August 2020 states that a taxpayer can request for assistance under MAP regardless of the remedies provided under the Indian domestic law. This claim in the MAP guidance concerning order under section 201 does not seem to get executed at ground level and in effect, inadvertently, the CBDT is forcing the non-resident to give up on its option to pursue MAP and take recourse to domestic remedy only. Allowing filing of MAP application by a non-resident entity concerning order under section 201 but keeping discussions on hold till an assessment order is passed in the case of the non-resident taxpayer, does not serve any purpose whatsoever, as order under section 201 is an outcome of an action by the non-resident that is not in accordance with the relevant DTAA. Hence, it would augur well if more clarity in this respect is provided through an addendum to the MAP guidance by allowing early MAP discussions between the CAs.