![]() ![]() Provision of information technology enabled services, with insignificant risks Provision of software development services other than contract research and development (R&D) services, with insignificant risks International transactions and applicable safe harbor transfer priceĪ summary of the safe harbor transfer price declared by an eligible taxpayer that shall be accepted by the tax authorities for FY 2020-21 is as follows: The CBDT has now issued a notification on 24 September 2021 extending the applicability of SHR to FY 2020-21, without any further modification. The CBDT then extended the applicability of the SHR to FY 2019-20, without any modifications. For FY 2016-17, as the amended rules overlapped with the prior rules, the taxpayers had the option to opt for the rule which was more beneficial. The amended rules were applicable for three FYs from FY 2016-17 through FY 2018-19. On 7 June 2017, the CBDT issued notification 46/2017 amending the SHR by extending the applicability to an additional category of international transaction as well as revising the applicable price/margins that would be accepted as arm's length. The SHR provided the procedure for adopting a safe harbor, the transfer price to be adopted, the compliance procedures upon adoption of a safe harbor and circumstances in which a safe harbor adopted may be held to be invalid. On 18 September 2013, the CBDT issued the SHR, applicable for five years from FY 2012-13 to FY 2016-17. The Finance Act 2009 introduced provisions in the ITL that authorized the CBDT, to establish a TP SHR. 1įurther, the CBDT has yet to prescribe SHR for attribution of profits to a business connection or permanent establishment (PE) of a nonresident, which was introduced under Finance Act 2020. ![]() The due date for filing is 28 February 2022. Taxpayers opting for SHR for FY 2020-21 would need to file the return of income for the year on or before the date of furnishing the prescribed Form 3CEFA for opting for the SHR. On 24 September 2021, the CBDT issued a new notification extending the applicability of SHR to FY 2020-21, without any further modifications. On, the CBDT issued a notification amending the SHR to extend the applicability to FY 2019-20, without any modifications. For FY 2016-17, taxpayers had the option to elect the rule which was more beneficial. The CBDT through notification dated 7 June 2017 amended the SHR, which were applicable for three FYs from FY 2016-17 through FY 2018-19. India's Central Board of Direct Taxes (CBDT), the apex Indian tax administration body, first issued transfer pricing (TP) safe harbor rules (SHR) on 18 September 2013, applicable for five years from financial year (FY) 2012-13 to FY 2016-17. India Tax Administration extends applicability of transfer pricing safe harbor rules to financial year 2020-21Ī "safe harbor" is defined in the Indian Income Tax Law (ITL) as circumstances under which the tax authorities will accept the transfer price declared by the taxpayer. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |