Applicability of the form 49 C
Section 285 inserted by the Finance Act, 2011, w.e.f. 1-6-2011 says that "Every person, being a non-resident having a liaison office in India set up in accordance with the guidelines issued by the Reserve Bank of India under the Foreign Exchange Management Act, 1999 (42 of 1999), shall, in respect of its activities in a financial year, prepare and deliver or cause to be delivered to the Assessing Officer having jurisdiction, within sixty days from the end of such financial year, a statement in such form and containing such particulars as may be prescribed."
Rule 114DA was inserted and form 49 C is introduced to report annual statement under section 285 w.e.f. 01-04-2012.
Time Limit to submit form 49C
As per section 285 the time limit to submit the annual statement in form 49C is within 60
days from the end of financial year. It means that the time limit for the financial year
ending 31st march 2012 is 30th May 2012.
Now, the information required to be provided in form 49C includes date of submission of
Annual Activity Certificate. The regulation to submit AAC (Annual Activity Certificate) is being
governed by RBI.
As per RBI master circular No. 11/2010-11 dated July 01, 2010 every Branch office / Liaison
Office was required to submit AAC, at the end of Mach 31, on or before April 30 to the
Designated Category Bank and a copy to the Directorate General of Income Tax
(International Taxation), New Delhi. However, The Last date to submit the AAC was revised
by circular no. 6 dated dated 9th August 2010. Para 2 of the circular says, “In view of the
difficulties expressed by some Liaison Offices / Branch Offices in submitting the AACs within difficulties expressed by some Liaison Offices / Branch Offices in submitting the AACs within
the prescribed period, it has been decided to review the current calendar for the same.
Accordingly, the AACs from the Auditors, as at end of March 31, along with the audited
Balance Sheet may be submitted on or before September 30 of that year. In case the annual
accounts of the LO/ BO are finalized with reference to a date other than March 31, the AAC
along with the audited Balance Sheet may be submitted within six months from the due date
of the Balance Sheet.”
(1) The annual statement as provided under section 285 for every financial year, shall be
furnished in Form No. 49C.
(2) The annual statement referred to in sub-rule (1) shall be duly verified by the Chartered
Accountant or the person authorised in this behalf by the non-resident person, who shall be
known as the Authorised Signatory.
(3) The annual statement referred to in sub-rule (1) shall be furnished in electronic form
along with digital signature.
(4) The Director General of Income-tax (Systems) shall specify the procedure for filing of
annual statement referred to in sub-rule (l) and shall also be responsible for formulating and
implementing appropriate security, archival and retrieval policies in relation to statements so