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Transfer Pricing - CBDT inserts new columns in Form No 3CEFA relating to employee cost in relation to operating expenses + currency of denomination of loan amount for each transaction + credit rating of AE
By TII News Service
Jul 18, 2017 , New Delhi

    

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
CENTRAL BOARD OF DIRECT TAXES
NEW DELHI

NOTIFICATION NO

62 /2017, Dated: July 18, 2017

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
"10.

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.

 

(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.

 
";

Yes No

   

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

(Rajesh Kumar Kedia)
Director
(Tax Policy and Legislation)

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. 865(E), dated the 12th July, 2017.

 
 
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