Transfer Pricing: Finance Ministry Press Release Reg Safe Harbour Rules
The Ministry of Finance has issued a press release stating that the Safe
Harbour Rules have been finalized after considering the comments of
various stake holders. The significant aspect is that in case of
transactions in the nature of routine ITES and ITS activities the
earlier ceiling of Rs 100 crore has been removed. Transactions upto Rs.
500 crore have been provided safe harbour margin of 20% and transaction
above
Rs.500 crore have been provided safe harbour margin of 22%.
Similarly, the ceiling of Rs. 100 crore provided for transactions in the
nature of corporate guarantee has been removed. Also, the rules provide
for a time bound procedure for determination of the eligibility of the
assessee and the international transactions. Any rejection of the option
exercised by the assessee shall be by way of a reasoned order passed
after hearing the assessee. The assessee shall have a right to file an
objection with the Commissioner against adverse finding regarding the
eligibility. The Commissioner shall thereafter decide about the validity
of the option exercised by the assessee.
No comments:
Post a Comment