(10)For the purposes this section,—(a)"accounting year" means,—(i)a tax year, in a case where the parent entity is resident in India; or(ii)an annual accounting period, with respect to which the parent entity of the international group prepares its financial statements under any law in force or the applicable accounting standards of the country or territory of which such entity is resident, in any other case;(b)"agreement" means a combination of all of the following agreements:—(i)an agreement entered into under section 159(1) or (2); and(ii)an agreement for exchange of the report referred to in sub-section (2) and notified by the Central Government;(c)"alternate reporting entity" means any constituent entity of the international group that has been designated by such group, in the place of the parent entity, to furnish the report of the nature referred to in sub-section (2) in the country or territory in which the said constituent entity is resident on behalf of such group;(d)"constituent entity" means—(i)any separate entity of an international group that is included in the consolidated financial statement of the said group for financial reporting purposes, or may be so included for the said purpose, if the equity share of any entity of the international group were to be listed on a stock exchange;(ii)any such entity that is excluded from the consolidated financial statement of the international group solely on the basis of size or materiality; or(iii)any permanent establishment of any separate business entity of the international group included in sub-clause (i) or (ii), if such business unit prepares a separate financial statement for such permanent establishment for financial reporting, regulatory, tax reporting or internal management control purposes;(e)"group" includes a parent entity and all the entities in respect of which, for the reason of ownership or control, a consolidated financial statement for financial reporting purposes—(i)is required to be prepared under any law in force or the accounting standards of the country or territory of which the parent entity is resident; or(ii)would have been required to be prepared, had the equity shares of any of the enterprises were listed on a stock exchange in the country or territory of which the parent entity is resident;(f)"consolidated financial statement" means the financial statement of an international group in which the assets, liabilities, income, expenses and cash flows of the parent entity and the constituent entities are presented as those of a single economic entity;(g)"international group" means any group that includes—(i)two or more enterprises which are resident of different countries or territories; or(ii)an enterprise, being a resident of one country or territory, which carries on any business through a permanent establishment in other countries or territories;(h)"parent entity" means a constituent entity, of an international group holding, directly or indirectly, an interest in one or more of the other constituent entities of the international group, such that—(i)it is required to prepare a consolidated financial statement under any law in force or the accounting standards of the country or territory of which the entity is resident; or(ii)it would have been required to prepare a consolidated financial statement had the equity shares of any of the enterprises were listed on a stock exchange, and, there is no other constituent entity of such group which, due to ownership of any interest, directly or indirectly, in the first mentioned constituent entity, is required to prepare a consolidated financial statement, under the circumstances referred to in sub-clause (i) or (ii), that includes the separate financial statement of the first mentioned constituent entity;(i)"permanent establishment" shall have the meaning assigned to it in section 173(c);(j)"reporting accounting year" means the accounting year in respect of which the financial and operational results are required to be reflected in the report referred to in sub-sections (2), (4) and (5);(k)"reporting entity" means the constituent entity including the parent entity or the alternate reporting entity, that is required to furnish a report of the nature referred to in sub-section (2);(l)"systemic failure" with respect to a country or territory means that the country or territory has an agreement with India providing for exchange of report of the nature referred to in sub-section (2), but—(i)in violation of the said agreement, it has suspended automatic exchange; or(ii)has persistently failed to automatically provide to India the report in its possession in respect of any international group having a constituent entity resident in India.
