Transfer Pricing (TP) Safe Harbour Rules extended upto AY 2022-23, notifies CBDT

The CBDT notifies the ‘Income-tax (18th Amendment) Rules, 2022’ to amend IT Rule 10TD(3B), extending the applicability of the provisions of sub-rules (1) and (2A) relating to Transfer Pricing (TP) Safe Harbour Rules up to assessment year 2022-23.

It should be noted that the Income-tax Authorities are supposed to accept the transfer prices declared by the Assessee to be at arm’s length for the eligible international transactions specified in IT Rules 10TD(1) and 10TD(2)(2A).

The concept of safe harbour rates was introduced by the Finance Act 2009 as part of the Transfer Pricing Mechanism (TPM), whereby the Income Tax Department keeps a check on the arm’s length pricing of a company’s transactions with its own overseas divisions/units.

As a result, the transfer pricing (TP) safe harbour rates that were initially notified for a block of four years under sub-rule (3) for AY 2013-14 to 2016-17, and then for three years under sub-rule (3A) for AY 2017-18 to 2019-20, were later extended up to AY 2020-21 and AY 2021-22. According to the current extension, these rates will remain in effect for AY 2022-23 as well.

Transfer Pricing Safe Harbour Rules extended upto AY 2022-23: CBDT Notification 66/2022

CBDT Income Tax Notification 66/2022 dt. 17/06/2022: IT Rule 10D(3B) amended to extend applicability of Transfer Pricing (TP) Safe Harbour Rules upto assessment year 2022-23

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 01/04/2022.

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.

Explanatory Memorandum: This amendment is effective from 01/04/2022 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, subsection (ii) vide number S.O. 969 (E) dt. 26/03/1962 and were last amended vide notification number G.S.R. 455 (E), dt. 16/06/2022.

Transfer Pricing (TP) Safe Harbour Rules extended upto AY 2021-22

CBDT notifies the ‘Income-tax (30th Amendment) Rules, 2021’ to amend IT Rule 10TD(3B), i.e. to extend applicability of the provisions of sub-rule (1) and (2A) relating to Transfer Pricing (TP) Safe Harbour Rules, upto assessment year 2021-22.

CBDT Income Tax Notification 117/2021 dt. 24/09/2021: IT Rule 10D(3B) amended to extend applicability of Transfer Pricing (TP) Safe Harbour Rules upto assessment year 2021-22

G.S.R. 661(E).- In exercise of the powers conferred by sub-section (2) of section 92CB read with section 295 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 (30th Amendment) Rules, 2021.

(2) They shall be deemed to have come into force from 01/04/2021.

2. In the Income-tax Rules, 1962, in rule 10TD, in sub-rule (3B), for the words and figures “assessment year 2020-21”, the words and figures “assessment years 2020-21 and 2021-22” shall be substituted.

Explanatory Memorandum: 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) dt. 26/03/1962 and were last amended vide notification number GSR 627(E) dt. 13/09/2021.

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