The CBDT has extended the applicability of Rule 10TD(1) and Rule 10(2A) of the IT Rules, 1962, which are the Transfer Pricing Safe Harbour Rules, until the Assessment Year 2023-24. This means that taxpayers can continue to use the TP Safe Harbour Rules to determine the arm's length price of eligible international transactions for AY 2023-24.
The TP Safe Harbour Rules are a set of rules that provide certainty to taxpayers in relation to transfer pricing. They specify a list of eligible international transactions for which the transfer price declared by the assessee will be accepted by the income tax authorities, provided the transaction meets certain conditions.
Official copy of the notification has been mentioned below
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 9th August, 2023
INCOME-TAX
G.S.R. 595(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 (Fifteenth Amendment) Rules, 2023.
(2) They shall deemed to have come into force from the 1st day of April 2023.
2. In the Income-tax Rules, 1962, in rule 10TD, in sub-rule (3B), for the words and figures "assessment years 2020- 21, 2021-22 and 2022-23", the words and figures "assessment years 2020-21, 2021-22, 2022-23 and 2023-24" shall be substituted.
[Notification No. 58/2023/ F. No. 370142/26/2023-TPL]
SOURABH JAIN, Under Secy.
Explanatory Memorandum: This amendment is effective from 1st day of April, 2023 and applies to assessment year 2023-24 relevant to previous year 2022-23. 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, sub-section (ii) vide number S.O. 969 (E) dated the 26th March, 1962 and were last amended vide notification number G.S.R. 579 (E), dated 1st August, 2023.
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