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[Section 10TD]
[Entire Act]
Union of India - Subsection
Section 10TD(2A) in Income Tax Rules, 1962
| 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 17per cent, where the value of international transaction does notexceed a sum of one hundred crore rupees; or(ii)not less than 18 per cent, where the valueof international transaction exceeds a sum of one hundred crorerupees but does not exceed a sum of two 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 17per cent, where the aggregate value of such transactions enteredinto during the previous year does not exceed a sum of onehundred crore rupees; or(ii)not less than 18 per cent, where theaggregate value of such transactions entered into during theprevious year exceeds a sum of one hundred crore rupees but doesnot exceed a sum of two hundred crore rupees. |
| 3. | Provision of knowledge process outsourcingservices referred to in item (iii) of rule 10TC. | The value ofinternational transaction does not exceed a sum of two hundredcrore rupees and the operating profit margin declared by theeligible assessee from the eligible international transaction inrelation to operating expense is -(i)not less than 24per cent. and the Employee Cost in relation to the OperatingExpense is at least sixty per cent.(ii)not less than 21per cent. and the Employee Cost in relation to the OperatingExpense is forty per cent. or more but less than sixty per cent.or(iii)not less than 18 per cent and the EmployeeCost in relation to the Operating Expense does not exceed fortyper cent. |
| 4. | Advancing of intra-group loans referred to initem (iv) of rule 10TC where the amount of loan is denominated inIndian Rupees (INR). | The interest ratedeclared in relation to the eligible international transaction isnot less than the one-year marginal cost of funds lending rate ofState Bank of India as on 1st April of the relevant previous yearplus,-(i) 175 basis points,where the associated enterprise has CRISIL credit rating betweenAAA to A or its equivalent;(ii) 325 basispoints, where the associated enterprise has CRISIL credit ratingof BBB-, BBB or BBB+ or its equivalent;(iii) 475 basispoints, where the associated enterprise has CRISIL credit ratingbetween BB to B or its equivalent;(iv) 625 basispoints, where the associated enterprise has CRISIL credit ratingbetween C to D or its equivalent; or(v) 425 basis points, where credit rating of theassociated enterprise is not available and the amount of loanadvanced to the associated enterprise including loans to allassociated enterprises in Indian Rupees does not exceed a sum ofone hundred crore rupees in the aggregate as on 31st March of therelevant previous year. |
| 5. | Advancing of intra-group loans referred to initem (iv) of rule 10TC where the amount of loan is denominated inforeign currency. | The interest ratedeclared in relation to the eligible international transaction isnot less than the six-month London Inter-Bank Offer Rate of therelevant foreign currency as on 30th September of the relevantprevious year plus, -(i) 150 basis points,where the associated enterprise has CRISIL credit rating betweenAAA to A or its equivalent;(ii) 300 basispoints, where the associated enterprise has CRISIL credit ratingof BBB-, BBB or BBB+ or its equivalent;(iii) 450 basispoints, where the associated enterprise has CRISIL credit ratingbetween BB to B or its equivalent;(iv) 600 basispoints, where the associated enterprise has CRISIL credit ratingbetween C to D or its equivalent; or(v) 400 basis points, where credit rating of theassociated enterprise is not available and the amount of loanadvanced to the associated enterprise including loans to allassociated enterprises does not exceed a sum equivalent to onehundred crore Indian rupees in the aggregate as on 31st March ofthe relevant previous year. |
| 6. | Providing corporate guarantee referred to insub-item (a) or sub-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 one per cent per annum on the amount guaranteed. |
| 7. | 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 24 percent, where the value of the international transaction does notexceed a sum of two hundred crore rupees. |
| 8. | 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 24 percent, where the value of the international transaction does notexceed a sum of two hundred crore rupees. |
| 9. | 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. |
| 10. | 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. |
| 11. | Receipt of low value-adding intra-group servicesin item (x) of rule 10TC. | The entire value ofthe international transaction, including a mark-up not exceeding5 per cent., does not exceed a sum of ten crore rupees:Provided that the method of cost pooling, theexclusion of shareholder costs and duplicate costs from the costpool and the reasonableness of the allocation keys used forallocation of costs to the assessee by the overseas associatedenterprise, is certified by an accountant. |