TMI BlogIncome-tax (12th Amendment) Rules, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... rporated or any of its agencies, who fulfills the following conditions, namely:- (I) if he is a member or partner in any entity engaged in rendering accountancy or valuation services then,- (i) the entity or its affiliates 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. (ii) the existing clause (a) shall be read as clause (aa); (iii) in clause (aa) so amended, in sub-clause (viii), after the word principal the words , except where the source code has been made available to carry out routine functions like debugging of the software shall be inserted; (iv) after clause (c), the following clause shall be inserted, namely:- (ca) employee cost includes,- (i) salaries and wages; (ii) gratuities; (iii) c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng services, namely:- (i) research and development services; (ii) manufacturing and production services; (iii) information technology (software development) services; (iv) knowledge process outsourcing services; (v) business process outsourcing services; (vi) purchasing activities of raw materials or other materials that are used in the manufacturing or production process; (vii) sales, marketing and distribution activities; (viii) financial transactions; (ix) extraction, exploration, or processing of natural resources; and (x) insurance and reinsurance; (vi) in clause (j),- (A) in the long line, after the words operations including the words costs relating to Employee Stock Option Plan or similar stock-based compensation provided for by the associated enterprises of the assessee to the employees of the assessee, reimbursement to associated enterprises of expenses incurred by the associated enterprises on behalf of the assessee, amounts recovered from associated enterprises on account of expenses incurred by the assessee on behalf of those associated enterprises and which relate to normal operations of the assessee and shall be inserted; ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Provision of software development services referred to in item (i) of rule 10TC. The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense incurred is (i) not less than 17 per cent., where the value of international transaction does not exceed a sum of one hundred crore rupees; or (ii) not less than 18 per cent., where the value of international transaction exceeds a sum of one hundred crore rupees but does not exceed a sum of two hundred crore rupees. 2. Provision of information technology enabled services referred to in item (ii) of rule 10TC . The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is (i) not less than 17 per cent., where the aggregate value of such transactions entered into during the previous year does not exceed a sum of one hundred crore rupees; or (ii) not less than 18 per cent., where the aggregate value of such transactions entered into during the previous year exceeds a sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess than the six-month London Inter-Bank Offer Rate of the relevant foreign currency as on 30th September of the relevant previous year plus, (i) 150 basis points, where the associated enterprise has CRISIL credit rating between AAA to A or its equivalent; (ii) 300 basis points, where the associated enterprise has CRISIL credit rating of BBB-, BBB or BBB+ or its equivalent; (iii) 450 basis points, where the associated enterprise has CRISIL credit rating between BB to B or its equivalent; (iv) 600 basis points, where the associated enterprise has CRISIL credit rating between C to D or its equivalent; or (v) 400 basis points, where credit rating of the associated enterprise is not available and the amount of loan advanced to the associated enterprise including loans to all associated enterprises does not exceed a sum equivalent to one hundred crore Indian rupees in the aggregate as on 31st March of the relevant previous year. 6. Providing corporate guarantee referred to in sub-item (a) or sub-item (b) of item (v) of rule 10TC. The commission or fee declared in relation to the eligible international ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) shall apply for the assessment year 2017-18 and two assessment years immediately following that assessment year: Provided that where an eligible assessee is eligible to exercise option under sub-rule (2) or, as the case may be, sub-rule (2A) above, the assessee shall have the right to choose the option which is most beneficial to him. (iv) in sub-rule (4), after the words, brackets and number and (2) the words, brackets, numbers and letter or, as the case may be, (2A) shall be inserted. (V) in rule 10TE , - (i) in sub-rule (2), after the second proviso, the following proviso shall be inserted, namely:- Provided also that in case of the option for safe harbour validly exercised under sub-rule (2A) of rule 10TD , the word three shall be substituted for five . ; (ii) in sub-rule (9), after the words, brackets and number sub-rule (2) , wherever they may occur, the words, brackets, number and letter or, as the case may be, sub-rule (2A) shall be inserted; (iii) in sub-rule (13), after the words, brackets and number sub-rule (2) the words, brackets, number and letter or, as the case may be, sub-rule (2A) shall be inserted. [ F. No. 370142/6/2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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