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Union of India - Section

Section 10THC in Income Tax Rules, 1962

10THC. Safe Harbour.

(1)Where an eligible assessee has entered into an eligible specified domestic transaction in any previous year relevant to an assessment year and the option exercised by the said assessee is treated to be validly exercised under rule 10THD, the transfer price declared by the assessee in respect of such transaction for that assessment year shall be accepted by the income-tax authorities, if it is in accordance with the circumstances as specified in sub-rule (2).
(2)The circumstances referred to in sub-rule (1) in respect of the eligible specified domestic transaction specified in column (2) of the Table below shall be as specified in the corresponding entry in column (3) of the said Table:-
S.No. Eligible specified domestic transaction Circumstances
1. 2. 3.
1. Supply of electricity, transmission ofelectricity, wheeling of electricity referred to in clause (i),(ii) or (iii) of rule 10THB, as the case may be The tariff in respect of supply of electricity,transmission of electricity, wheeling of electricity, as the casemay be, is determined or the methodology for determination of thetariff is approved by the Appropriate Commission in accordancewith the provisions of the Electricity Act, 2003 (36 of 2003).
2. Purchase of milk or milk products referred to inclause (iv) of rule 10THB. The price of milk ormilk products is determined at a rate which is fixed on the basisof the quality of milk, namely, fat content and Solid Not FAT(SNF) content of milk ; and-(a) the said rate isirrespective of,-(i) the quantity of milk procured;(ii) the percentage of shares held by the members in theco-operative society;(iii) the voting power held by the members in the society; and(b) such prices are routinely declared by theco-operative society in a transparent manner and are available inpublic domain.
(3)No comparability adjustment and allowance under the second proviso to sub-section (2) of section 92C shall be made to the transfer price declared by the eligible assessee and accepted under sub-rule (1).
(4)The provisions of sections 92D and 92E in respect of a specified domestic transaction shall apply irrespective of the fact that the assessee exercises his option for safe harbour in respect of such transaction.