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[Cites 0, Cited by 0] [Section 10TD] [Entire Act]

Union of India - Subsection

Section 10TD(2) in Income Tax Rules, 1962

(2)The circumstances referred to in sub-rule (1) in respect of the eligible international transaction specified in column (2) of the Table below shall be as specified in the corresponding entry in column (3) of the said Table:-
Sl. No. Eligible International Transaction Circumstances
(1) (2) (3)
1. Provision of software development servicesreferred to in item (i) of rule 10TC. The operating profitmargin declared by the eligible assessee from the eligibleinternational transaction in relation to operating expenseincurred is -(i) not less than 20per cent, where the aggregate value of such transactions enteredinto during the previous year does not exceed a sum of fivehundred crore rupees; or(ii) not less than 22 per cent, where theaggregate value of such transactions entered into during theprevious year exceeds a sum of five hundred crore rupees.
2. Provision of information technology enabledservices referred to in item (ii) of rule 10TC. The operating profitmargin declared by the eligible assessee from the eligibleinternational transaction in relation to operating expense is -(i) not less than 20per cent, where the aggregate value of such transactions enteredinto during the previous year does not exceed a sum of fivehundred crore rupees; or(ii) not less than 22 per cent, where theaggregate value of such transactions entered into during theprevious year exceeds a sum of five hundred crore rupees.
3. Provision of knowledge process outsourcingservices referred to in item (iii) of rule 10TC. The operating profit margin declared by theeligible assessee from the eligible international transaction inrelation to operating expense is not less than 25 per cent.
4. Advancing of intra-group loans referred to initem (iv) of rule 10TC where the amount of loan does not exceed fiftycrore rupees. The Interest rate declared in relation to theeligible international transaction is not less than the base rateof State Bank of India as on 30th June of the relevant previousyear plus 150 basis points.
5. Advancing of intra-group loans referred to initem (iv) of rule 10TC where the amount of loan exceeds fifty crorerupees. The Interest rate declared in relation to the eligibleinternational transaction is not less than the base rate of StateBank of India as on 30th June of the relevant previous year plus300 basis points.
6. Providing corporate guarantee referred to insub-item (a) of item (v) of rule 10TC. The commission or fee declared in relation tothe eligible international transaction is at the rate not lessthan 2 per cent per annum on the amount guaranteed.
7. Providing corporate guarantee referred to insub-item (b) of item (v) of rule 10TC. The commission or fee declared in relation tothe eligible international transaction is at the rate not lessthan 1.75 per cent. per annum on the amount guaranteed.
8. Provision of contract research and developmentservices wholly or partly relating to software developmentreferred to in item (vi) of rule 10TC. The operating profit margin declared by theeligible assessee from the eligible international transaction inrelation to operating expense incurred is not less than 30 percent.
9. Provision of contract research and developmentservices wholly or partly relating to generic pharmaceuticaldrugs referred to in item (vii) of rule 10TC. The operating profit margin declared by theeligible assessee from the eligible international transaction inrelation to operating expense incurred is not less than 29 percent.
10. Manufacture and export of core auto componentsreferred to in item (viii) of rule 10TC. The operating profit margin declared by theeligible assessee from the eligible international transaction inrelation to operating expense is not less than 12 per cent.
11. Manufacture and export of non-core autocomponents referred to in item (ix) of rule 10TC. The operating profit margin declared by theeligible assessee from the eligible international transaction inrelation to operating expense is not less than 8.5 per cent.