India and the US can now exchange country-by-country (CbC) reports filed by the parent corporations based in either of the countries.
The Income-tax Act requires Indian subsidiaries of multinational companies to provide details of key financial statements from other jurisdictions where they operate.
This provides the I-T Department with better operational view of such companies.
The provision was a part of the Base Erosion and Profit Shifting (BEPS) action plan.