CBDT vide Notification No. 66/2022 dated 17.06.2022 in G.S.R. 458(E) through Income-tax (18th Amendment) Rules, 2022 has extended the validity of safe harbour provisions for transfer pricing issues of Rule 10TD till Assessment Year 2022-23. Rule 10TD prescribes a list of eligible international transactions where the transfer price declared by the assessee shall be required to be accepted by the Income-tax Authorities.
Rule 10TD(1) and Rule 10TD(2A) prescribe a list of eligible international transactions where income-tax authorities shall accept the transfer price declared by the taxpayer at arm’s length.
Sub-rule (3A) to Rule 10TD provides the time limit for the applicability of Rules 10TD(1) and 10TD(2A). It provides that provisions shall apply for the Assessment Year 2017-18 and the following two Assessment Years. In other words, it shall apply for three AYs 2017-18 to 2019-20. Later the Board has inserted a new sub-rule (3B) to the Rule 10TD to extend the applicability to AY 2020-21 and thereafter till Assessment Year 2021-22.
The Board has now amended Rule 10TD(3B) to further extend the applicability Rule 10TD till Assessment Year 2022-23 w.e.f 1st April, 2022.
Read the full text of Notification No. 66/2022 dated 17.06.2022 on Extension of Validity of Safe Harbour rules till AY 2022-23
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 17th June, 2022
INCOME-TAX
G.S.R. 458(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. Short title and commencement. - (1) These rules may be called the Income-tax (18th Amendment) Rules, 2022.
(2) They shall be deemed to have come into force from the 1st day of April, 2022.
2. In the Income-tax Rules, 1962, in rule 10TD, in sub-rule (3B), for the words and figures “assessment years 2020-21 and 2021-22”, the words and figures “assessment years 2020-21, 2021-22 and 2022-23” shall be substituted.
[Notification No. 66 /2022/F. No. 370142/26/2022-TPL]
NEHA SAHAY, Under Secy
Explanatory Memorandum : This amendment is effective from 1st day of April, 2022 and applies to assessment year 2022 -2023 relevant to previous year 2021-2022. Accordingly, it is hereby certified that no person is being adversely affected by giving retrospective effect to these rules.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, section-3, sub-section (ii) vide number S.O. 969 (E) dated the 26th March, 1962 and were last amended vide notification number G.S.R. 455 (E), dated the 16th June, 2022.
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