CBDT Notifies Revised Form 3CEFA for Opting Safe Harbour Rules [Read Notification]

The Central Board of Direct Taxes (CBDT) yesterday notified the revised form 3CEFA for opting Safe Harbour Rules under the Income Tax Act, 1961.

As per the 2013 rules, Safe harbor, i.e. minimum revenue/margin has been prescribed for certain sectors/transactions, implying that if an eligible taxpayer is earning not less than specified revenue/margins in respect of its transactions with its related parties (being non-residents), no further income shall be imputed to it by virtue of application of transfer pricing regulations. Transactions such as software development services, IT-enabled services, KPOs, Loan to 100% overseas subsidiaries, Corporate Guarantee for wholly-owned subsidiary etc were recognized as eligible international transactions under the rules.

A taxpayer, who wants to avail the benefit of the rules, is required to make an application giving necessary details of transactions to the appropriate authority before due date for filing return of income for the relevant year.

Recently, the Government CBDT had notified the Safe Harbour Rules incorporating some necessary amendments in the rules issued by the Board in the ear 2013.

Read the Full Text of the Notification Below

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