Section 92CB of the Income Tax Act 1961 provides that the determination of arm’s length price under Section 92C OR 92CA. However, same shall be subject to Safe Harbour Rules.
Sections 10 TA to 10 TG deals with the Safe Harbour Rules, which pertain to International Transactions.
Rule 10TE provides a detailed procedure for exercise of option for Safe Harbour Rules.
To exercise the option, the assessee shall furnish a Form 3CEFA, complete in all aspects, to the Assessing Officer (AO) on or due date as specified in Explanation 2 of sub- Section 1 of Section 139 i.e.
Further, it is necessary to furnish his return of income on or before the date of furnishing of Form 3CEFA.
The option of safe harbour validly exercised shall continue to remain in force for the period specified in Form 3CEFA OR a period of five years whichever is less.
In addition to above, the Assessee require to submit a statement to the Assessing Officer (AO) before filing return of income, details like Eligible Transactions / Quantum/ Profit Margins / Rate of Interest / Commission… etc
Latest Amendments – In Brief
The Income-tax (21st Amendment) Rules, 2017
W.e.f – 1st day of April 2017
Additional Details – Required to be disclosed
Has the eligible assessee entered into any international transaction in respect of receipt of low value-adding intra-group services as referred to in item (x) of rule 10TC? If Yes? Then following details also required: