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TMI BlogDefinitionsX X X X Extracts X X X X X X X X Extracts X X X X ..... iliates have presence in more than two countries; and (ii) the annual receipt of the entity in the year preceding the year in which cost certification is undertaken exceeds ten crore rupees; (II) if he is pursuing the profession of accountancy individually or is a valuer then,- (i) his annual receipt in the year preceding the year in which cost certification is undertaken, from the exercise of profession, exceeds one crore rupees; and (ii) he has professional experience of not less than ten years.] 4[(aa)] "contract research and development services wholly or partly relating to software development" means the following, namely: (i) research and development producing new theorems and algorithms in the field of theoretical compute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion batteries for use in electric or hybrid electric vehicles.] (c) "corporate guarantee" means explicit corporate guarantee extended by a company to its wholly owned subsidiary being a non-resident in respect of any short-term or long- term borrowing. Explanation.- For the purposes of this clause, explicit corporate guarantee does not include letter of comfort, implicit corporate guarantee, performance guarantee or any other guarantee of similar nature; 6[(ca) "employee cost" includes,- (i) salaries and wages; (ii) gratuities; (iii) contribution to Provident Fund and other funds; (iv) the value of perquisites as specified in clause (2) of section 17 of the Act; (v) employment related allowances, like medical allowance, dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns; (ii) call centres or contact centre services; (iii) data processing and data mining; (iv) insurance claim processing; (v) legal databases; (vi) creation and maintenance of medical transcription excluding medical advice; (vii) translation services; (viii) payroll; (ix) remote maintenance; (x) revenue accounting; (xi) support centres; (xii) website services; (xiii) data search integration and analysis; (xiv) remote education excluding education content development; or (xv) clinical database management services excluding clinical trials, but does not include any research and development services whether or not in the nature of contract research and development services; 12[(f) "intra-group loan" means loan a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities of the multinational enterprise group; (iii) are not in the nature of shareholder services or duplicate services; (iv) neither require the use of unique and valuable intangibles nor lead to the creation of unique and valuable intangibles; (v) neither involve the assumption or control of significant risk by the service provider nor give rise to the creation of significant risk for the service provider; and (vi) do not have reliable external comparable services that can be used for determining their arm's length price, but does not include the following services, namely:- (i) research and development services; (ii) manufacturing and production services; (iii) information technology (software development) services; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liabilities; (iii) pre-operating expenses; (iv) loss arising on account of foreign currency fluctuations; (v) extra-ordinary expenses; 13[(vi) loss on transfer of assets or investments other than assets, on which depreciation is included in the operating expense;] (vii) expense on account of income-tax; and (viii) other expenses not relating to normal operations of the assessee. 9[Provided that reimbursement to associated enterprises of expenses incurred by the associated enterprises on behalf of the assessee shall be at cost: Provided further that amounts recovered from associated enterprises on account of expenses incurred by the assessee on behalf of the associated enterprises and which relate to normal operations of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nality to application programmes; (v) debugging of systems; (vi) adaptation of existing software; or (vii) preparation of user documentation, but does not include any research and development services whether or not in the nature of contract research and development services.] ************* NOTES:- 1. Inserted vide Notification No. 73/2013 September 18, 2013 2. Substituted vide Notification No. 11/2015 - Dated 4-2-2015 before it was read as, "Safe Harbour Rules" 3. Inserted vide Notification No. 46/2017 - Dated 7-6-2017 w.e.f. 1st day of April, 2017 4. Existing clause (a) shall be read as clause (aa) vide Notification No. 46/2017 - Dated 7-6-2017 w.e.f. 1st day of April, 2017 5. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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