Income-tax (2 nd Amendment) Rules, 2015.
[TO BE
PUBLSIHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART
II,SECTION 3,
SUB-SECTION (ii)]
GOVERNMENT OF
INDIA
MINISTRY OF
FINANCE
DEPARTMENT OF
REVENUE
[CENTRAL BOARD
OF DIRECT TAXES]
Notification
New Delhi, the
4th February, 2015
INCOME – TAX
S.O.350 (E)In exercise of the powers conferred by
sections 92CB and
92D read with section 295 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. (1)
These rules may be called the Income-tax (2 nd Amendment),
Rules,
2015.
(2) They shall
come into force from the date of their publication in
the Official Gazette.
2. In
the Income-tax Rules, 1962, --
(A) in
Part-II, in sub-part D relating to special cases,--
(1) in rule 10
D,--
(a)
after sub-rule (2), the following sub-rule shall be inserted,
namely:-
“(2A)
Nothing contained in sub-rule (1), in so far as it relates to
an
eligible specified domestic transaction referred to in rule 10
THB
, shall apply in a case of an eligible assessee referred to in
rule
10 THA and, the said eligible assessee, shall keep and
maintain
the following information and documents, namely:-
(i)
a description of the ownership structure of the
assessee
enterprise with details of shares or other
ownership
interest held therein by other enterprises;
(ii)
a broad description of the business of the assessee
and
the industry in which the assessee operates, and of
the
business of the associated enterprises with whom the
assessee
has transacted;
(iii)
the nature and terms (including prices) of specified
domestic
transactions entered into with each associated
enterprise
and the quantum and the value of each such
transaction
or class of such transaction;
(iv)
a record of proceedings if any before the regulatory
commission
and orders of such commission relating to
the
specified domestic transaction;
(v)
a record of the actual working carried out for
determining
the transfer price of the specified domestic
transaction;
(vi)
the assumptions, policies and price negotiations, if
any,
which have critically affected the determination of
the
transfer price;
(vii)
any other information, data or document, including
information
or data relating to the associated enterprise,
which
may be relevant for determination of the transfer
price.”;
(b)in
sub-rule (3), for the word, brackets and figure “sub-rule
(1)
”, the word, brackets, figures and letter “sub-rules (1) and
(2A)”
shall be substituted;
(c)
in sub-rule (4) and in the proviso to sub-rule (4), for the words,
brackets
and figures “sub-rules (1) and (2)”,wherever they occur,
the
words , brackets, figures and letter “sub-rules (1), (2) and
(2A)”
shall be substituted;
(d)in
sub-rule (5), for the words, brackets and figures “sub-rules
(1)
and (2)”, the words, brackets , figures and letter “sub-rules
(1),
(2) and (2A)” shall be substituted;
(2) afterrule
10 T, in the heading, for the words “Safe Harbour Rules”,
the words “
Safe Harbour Rules for International Transactions” shall be
substituted;
(3) after rule
10TG, the following rules shall be inserted, namely:-
‘“Safe Harbour Rules for Specified Domestic
Transactions”
10TH. Definitions.- For the
purposes of this rule and rules 10THA to 10THD,-
(a) "Appropriate Commission” shall have the
same meaning as assigned to it
in sub-section (4) of section 2 of the Electricity
Act, 2003 (36 of 2003);
(b) “Governmentcompany”shallhavethe same meaning as
assigned toitinsub-
section (45) of section 2 ofthe CompaniesAct,2013
(18 of 2013);
10THA .Eligible assessee.–
The ‘eligible assessee’ means a person who
has exercised a valid option for application of
safe harbour rules in
accordance withthe provisions of rule 10 THC, and
is a Government
company engaged in the business of generation, transmission
or distribution
of electricity.
10THB. Eligible specified domestic transaction.– The
“Eligible specified
domestic transaction” means a specified domestic
transaction undertaken by
an eligible asseessee and which comprises of :-
(i) supply of electricity by a generating
company; or
(ii) transmission
of electricity; or
(iii) wheeling
of electricity.
Safe Harbour
10THC. (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:-
(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.
Procedure.
10 THD.(1)
For the purposes of exercise of the option for safe harbour, the
assessee shall furnish a Form 3CEFB,complete
in all respects, to the
Assessing Officer on or before the due date
specified in Explanation 2 to sub-
section (1) of section 139 for furnishing
the return of income for the relevant
assessment year :
Provided that the return of income for the
relevant assessment year is
furnished by the assessee on or before the
date of furnishing of Form 3CEFB:
Provided further that in respect of
eligible specified domestic transactions
undertaken during the previous year
relevant to the assessment year
beginning on the 1st day of
April, 2013 orbeginning on the 1st day of April,
2014, Form 3CEFB can be furnished by the
assessee on or before the 31st
day of March, 2015.
(2) On receipt of Form 3CEFB, the Assessing
Officer shall verify whether-
(i) theassessee exercising the option is an
eligible assessee; and
(ii) the transaction in respect of which the
option is exercised is an
eligible specified domestic transaction,
before the option for safe harbour by the
assessee is treated to be validly
exercised.
(3) Where the Assessing officer doubts the
valid exercise of the option for
the safe harbour by an assessee, he may
require the assessee, by notice in
writing, to furnish such information or
documents or other evidence as he may
consider necessary, and the assessee shall
furnish the same within the time
specified in such notice.
(4) Where-
(a) theassessee does not furnish the
information or documents or
other evidence required by the Assessing Officer; or
(b) the Assessing Officer finds that the
assessee is not an eligible
assessee; or
(c) the Assessing Officer finds that the
specified domestic
transaction in respect of which the option referred to in sub-rule
(1) has been exercised is not an eligible specified domestic
transaction; or
(d) the tariff is not in accordance with the
circumstances specified in
sub-rule (2) of rule 10 THC,
the Assessing Officer shall, by order in
writing, declare the option exercised
by the assessee under sub-rule (1) to be
invalid and cause a copy of the said
order to be served on the assessee:
Provided that
no order declaring the option exercised by the assessee
to be invalid shall be passed without
giving an opportunity of being heard to
the assessee.
(5) If the assessee objects to the order of
the Assessing Officer under sub-
rule (4) declaring the option to be
invalid, he may file his objections with the
Principal Commissioner or the Commissioner
or the Principal Director or the
Director, as the case may be, to whom the
Assessing Officer is subordinate,
within fifteen days of receipt of the order
of the Assessing Officer.
(6) On receipt of the objection referred to
in sub-rule (5), the Principal
Commissioner or the Commissioner or the
Principal Director or the Director,
as the case may be, shall after providing
an opportunity of being heard to the
assessee, pass appropriate orders in
respect of the validity or otherwise of the
option exercised by the assessee and cause
a copy of the said order to be
served on the assessee and the Assessing
Officer.
(7) For the purposes of this rule,-
(i) no order under sub-rule(4) shall be
made by an Assessing
Officer after expiry of a period of three months from the end of
the month in which Form 3CEFB is received by him;
(ii) the order under sub-rule (6) shall be
passed by the Principal
Commissioner or Commissioner or Principal Director or Director,
as the case may be, within a period of two months from the end
of the month in which the objection filed by the assessee under
sub-rule(5) is received by him.
(8) If the Assessing Officer or the
Principal Commissioner or the
Commissioner or the Principal Director or
the Director, as the case may be,
does not pass an orderwithin the time
specified in sub-rule (7), then the option
for safe harbour exercised by the assessee
shall be treated as valid.’;
(B) in Appendix II, after Form No.3CEFA,
the following Form shall be
inserted, namely:-
“Form
No. 3CEFB
(See
sub-rule (1) of rule 10THD)
Application
for Opting for Safe Harbour in respect of
Specified
Domestic Transactions
To,
The Assessing Officer
...................................
Sir/Madam,
I propose to opt for the safe harbour rules
under section 92CB of the Income-
tax Act, 1961 read with rules 10TH to 10THD
of the Income-tax Rules, 1962.
In this regard the particulars are as
under:
1.General:
(a) Full name of
the assessee:
(b) Permanent
Account Number:
(c) Address of
the assessee:
(d) Nature of
business or activities of the assessee:
(e) Status
(f) Assessment
Year
2. Eligible Specified Domestic Transaction:
I declare that the information furnished
herein is correct and truly stated.
Yours
faithfully,
Place:
Date:
Signature
Name
Designation/Capacity
Address
Note1.-Associated enterprise shall have the
same meaning as provided in
clause (a) of rule 10A.
Note 2.-The application shall be verifiedby
the person authorised to verify the
return of income under section 140.”.
Notification
No. 11 /2015 [F.No. 142/7/2014-TPL]
Ashish
Kumar
Director
(Tax Policy and Legislation)
Note: - The principal rules were published
in the Gazette of India
Extraordinary, part III, section 3,
sub-section (i),vide notification number S.O.
969(E), dated the, 26th March,
1962 and were last amended vide notification
number S.O-180(E), dated the 19/01/2015.
Post a Comment