CBDT notified Safe Harbour Rules for Specified Domestic Transactions

[TO BE PUBLSIHED IN THE GAZETTE OF
INDIA EXTRAORDINARY, PART 
II,SECTION 3, SUB-SECTION (ii)] 

GOVERNMENT OF INDIA 

MINISTRY OF FINANCE 

DEPARTMENT OF REVENUE 

[CENTRAL BOARD OF DIRECT TAXES] 

Notification 

New Delhi, the 4thFebruary,
2015
 

INCOME – TAX

 

S.O.350 (E)In exercise of the powers
conferred by sections 92CB and 92D read with section 295 of the Income-tax Act,
1961(43 of 1961), the Central Board of Direct Taxes hereby makes the following
rules further to amend the Income-tax Rules, 1962, namely:-

 

1.                
(1) These rules may be called the Income-tax
(2 nd Amendment), Rules, 2015.

 

(2)         
They shall come into force from the date of
their publication in the Official Gazette.

 

2.           
In
the Income-tax Rules, 1962, —

 

(A)        
in
Part-II, in sub-part D relating to special cases,–

 

(1) 
in
rule 10 D,–

 

(a)   after
sub-rule (2), the following sub-rule shall be inserted, namely:-

“(2A) Nothing contained in sub-rule (1), in so far as it
relates to an eligible specified domestic transaction referred to in rule 10
THB , shall apply in a case of an eligible assessee referred to in rule 10 THA
and, the said eligible assessee, shall keep and maintain the following
information and documents, namely:-

 

(i)       a
description of the ownership structure of the assessee enterprise with details
of shares or other ownership interest held therein by other enterprises;

(ii)   
a
broad description of the business of the assessee and the industry in which the
assessee operates, and of the business of the associated enterprises with whom
the 
assessee has transacted;

 

(iii)
the nature and terms (including prices) of specified domestic transactions
entered into with each associated 
enterprise
and the quantum and the value of each such transaction or class of such
transaction;

 

(iv)   a
record of proceedings if any before the regulatory commission and orders of
such commission relating to the specified domestic transaction; 

(v)       a
record of the actual working carried out for determining the transfer price of
the specified domestic transaction;

(vi)     the
assumptions, policies and price negotiations, if any, which have critically
affected the determination of the transfer price;

(vii)    any
other information, data or document, including information or data relating to
the associated enterprise, which may be relevant for determination of the
transfer price.”; 

 

(b)in sub-rule (3),
for the word, brackets and figure  “sub-rule (1)
”, the word, brackets, figures and letter “sub-rules (1) and (2A)” shall be
substituted;

 

(c) in sub-rule (4) and in the proviso to sub-rule
(4), for the words, brackets and figures “sub-rules (1) and (2)”,wherever they
occur, the words , brackets, figures and letter “sub-rules (1), (2) and (2A)”
shall be substituted;

 

(d)in sub-rule (5), for the words,
brackets and figures   “sub-rules (1)
and (2)”, the words, brackets, figures and letter “sub-rules (1), (2) and (2A)”
shall be substituted; 

 

 

(2)    after rule
10 T, in the heading, for the words “Safe Harbour Rules”, the words “ Safe
Harbour Rules for International Transactions” shall be substituted;

 

(3) 
after
rule 10TG, the following rules shall be inserted, namely:-

 

‘“Safe Harbour Rules for Specified Domestic
Transactions”

Download Complete Rule

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