Income Tax

Amendment to Form 3CEFA-Application for opting for safe harbour. CBDT Notification

Amendment to Form 3CEFA-Application for opting for safe harbour. more information added under Eligible International Transaction

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)

Notification No. 62 /2017

New Delhi, the 18th July, 2017

INCOME-TAX G.S.R. 891(E).—In exercise of the powers conferred by section 295 read with sub-section (2) of section 92CB 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 (21st Amendment) Rules, 2017.
(2) They shall come into force and shall be deemed to have come into force from the 1st day of April, 2017.

2. In the Income-tax Rules, 1962, in Appendix II, in Form No. 3CEFA, in paragraph 2, under the heading “Eligible International Transaction”-

(I) in Sl. No. 3, –
(i) after item (d), following item shall be inserted, namely:-
“(e) Employee cost in relation to operating expense declared

                                                           

”;

(ii) the existing items (e), (f) and (g) shall be renumbered as (f), (g) and (h) respectively;

(II) in Sl. No. 4, –

(i) after item (d), the following items shall be inserted, namely:

“(e) Currency of denomination of the amount of loan for each loan transaction

                                                          

(f) Whether credit rating of AE has been done? If yes, the credit rating rank and the name of the credit rating agency

 

”;

(ii) the existing items (e) and (f) shall be renumbered as (g) and (h) respectively;

(III) after Sl. No. 9, the following Sl. No. 10 and entities relating thereto shall be inserted, namely:

 

Sl No. Particulars in respect of eligible international transaction Remarks
1. 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, provide the following details:

(a) Name and address of the associated enterprises (AE) with whom the eligible international transaction has been entered into.

Yes No
(b) Name of the country or territory in which AE (s) is located.
(c) Whether country or territory is a no tax or low tax country or territory as defined in rule 10TA.
(d) Description of the eligible international transaction.
(e) Amount paid or payable in relation to such transaction.
(f) Mark-up charged in per cent.
(g) Whether transfer price is in accordance with the circumstances specified under rule 10TD.

[F. No. 370142/ 20/2017-TPL]

RAJESH KUMAR KEDIA,
Director (Tax Policy and Legislation)

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