IT - Safe Harbour Rules - CBDT Amends IT Rules
THE CBDT has amended the Income Tax Rules relating to Safe Harbour Rules.
A Government company engaged in the business of generation, transmission or distribution of electricity, is an 'eligible assessee' for application of safe harbour rules.
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 below:
S No | Eligible specified domestic Transaction | Circumstances |
|---|---|---|
1. | 2. | 3. |
1 | Supply of electricity, transmission of electricity, wheeling of electricity referred to in item (i), (ii) or (iii) of rule THB,as the case may be. | The tariff in respect of supply of electricity, transmission of electricity, wheeling of electricity, as the case may be, is determined by the Appropriate Commission in accordance with the provisions of the Electricity Act, 2003 (36 of 2003). |
CBDT has also notified Form No. 3CEFB - the Application for Opting for Safe Harbour in respect of Specified Domestic Transactions.
CBDT Notification No.11/2015, Dated: February 04 2015.