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Income-tax (12th Amendment) Rules, 2017

Income Tax - 46/2017 - Dated:- 7-6-2017 - MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION NO. 46/2017 New Delhi, the 7th June, 2017 INCOME-TAX G.S.R. 557(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. (1) These rules may be called the . (2) T .....

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rated 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 a .....

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(iv) after clause (c), the following clause shall be inserted, namely:- (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, dearness allowance, travel allowance and any other allowance; (vi) bonus or commission by whatever name called; (vii) lumpsum payments received at the time of te .....

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embedded in the total outsourcing expenses is not ascertainable, eighty per cent. of the total outsourcing expenses shall be deemed to be the employee cost embedded in the total outsourcing expenses; (x) recruitment expenses; (xi) relocation expenses; (xii) training expenses; (xiii) staff welfare expenses; and (xiv) any other expenses related to employees or the employment; ; (v) after clause (g), the following clause shall be inserted, namely:- (ga) low value-adding intra-group services means s .....

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areholder 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, name .....

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ources; 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 incurr .....

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ciated enterprises and which relate to normal operations of the assessee shall be at cost; (vii) in clause (k), in the long line, after the words normal operation the words including 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 shall be inserted; (viii) after clause (l), the following clause shall be inserted, namely:- (la) relevant previous year means the previous year .....

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tted; (ii) in clause (ix), after the word components the word ; or shall be inserted; (iii) after clause (ix), the following clause shall be inserted, namely:- (x) receipt of low value-adding intra-group services from one or more members of its group, . (IV) in rule 10TD, - (i) in sub-rule (1), after the words, brackets and number sub-rule (2) the words, brackets, numbers and letter or, as the case may be, sub-rule (2A) shall be inserted; (ii) after sub-rule (2), the following sub-rule shall be .....

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saction 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 .....

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f knowledge process outsourcing services referred to in item (iii) of rule 10TC. The value of international transaction does not exceed a sum of two hundred crore rupees and the operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is - (i) not less than 24 per cent. and the Employee Cost in relation to the Operating Expense is at least sixty per cent.; (ii) not less than 21 per cent. and the Employee Cost in relati .....

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tate Bank of India as on 1st April of the relevant previous year plus, - (i) 175 basis points, where the associated enterprise has CRISIL credit rating between AAA to A or its equivalent; (ii) 325 basis points, where the associated enterprise has CRISIL credit rating of BBB-, BBB or BBB+ or its equivalent; (iii) 475 basis points, where the associated enterprise has CRISIL credit rating between BB to B or its equivalent; (iv) 625 basis points, where the associated enterprise has CRISIL credit rat .....

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The interest rate declared in relation to the eligible international transaction is not less 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 t .....

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f 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 transaction is at the rate not less than one per cent. per annum on the amount guaranteed. 7. Provision of contract research and development services wholly or partly relating to software development referred to in item (vi) of rule 10TC. The operating profit margin declared by the eligible as .....

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o operating expense incurred is not less than 24 per cent., where the value of the international transaction does not exceed a sum of two hundred crore rupees. 9. Manufacture and export of core auto components referred to in item (viii) of rule 10TC. The operating profit margin declared by the eligible assessee from the eligible international transaction in relation to operating expense is not less than 12 per cent. 10. Manufacture and export of non-core auto components referred to in item (ix) .....

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