Section 92CE(2D) — the law in short
What the courts have decided on section 92CE(2D), in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.
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Statutory position — s.92CE(2A) to (2D): the one-time option to pay eighteen per cent additional income-tax instead of repatriating, and the three doors it closes — no deduction, no credit, no refund
CBDT Circulars & InstructionsCuts both ways
My associated enterprise will not send the money back. Can I simply pay tax on it and be done, and if I do, what do I give up?
Yes. Section 92CE(2A) gives the assessee an option, "without prejudice to the provisions of sub-section (2)", where the excess money or part of it has not been repatriated within the prescribed time, to "pay additional income-tax at the rate of eighteen per cent on such excess money or part thereof". The price of that option is stated in the next three sub-sections and it is absolute. Sub-section (2B) makes the payment "the final payment of tax in respect of the excess money or part thereof not repatriated" and provides that "no further credit therefor shall be claimed by the assessee or by any other person in respect of the amount of tax so paid". Sub-section (2C) provides that "No deduction under any other provision of this Act shall be allowed to the assessee in respect of the amount on which tax has been paid in accordance with the provisions of sub-section (2A)". Sub-section (2D) then closes the loop in the taxpayer's favour: once the additional income-tax is paid "he shall not be required to make secondary adjustment under sub-section (1) and compute interest under sub-section (2) from the date of payment of such tax". These four sub-sections were inserted by Act No. 23 of 2019 with effect from 1 September 2019.
Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.