Power of Board to make safe harbour rules (1) The determination of— (a) income referred to in clause (i) of sub-section (1) of section 9; or (b) arm’s length price under section 92C or section 92CA, shall be subject to safe harbour rules40. (2) The Board may, for the purposes of sub-section (1), make rules for safe harbour. Explanation.—For the purposes […]

📌 Transfer pricing regulations in India ensure that international and specified domestic transactions between associated enterprises adhere to the arm’s length principle (ALP). A key provision governing transfer pricing is Section 92CA, which outlines the powers and functions of the Transfer Pricing Officer (TPO) in determining ALP. 🔹 Reference to the Transfer Pricing Officer Under

Computation of arm’s length price (1) The arm’s length price in relation to an international transaction or specified domestic transaction shall be determined by any of the following methods, being the most appropriate method, having regard to the nature of transaction or class of transaction or class of associated persons or functions performed by such

Meaning of specified domestic transaction For the purposes of this section and sections 92, 92C, 92D and 92E, “specified domestic transaction” in case of an assessee means any of the following transactions, not being an international transaction, namely:—  (i) [***] (ii) any transaction referred to in section 80A; (iii) any transfer of goods or services referred to in sub-section (8) of section

Meaning of international transaction (1) For the purposes of this section and sections 92, 92C, 92D and 92E, “international transaction” means a transaction between two or more associated enterprises, either or both of whom are non-residents, in the nature of purchase, sale or lease of tangible or intangible property, or provision of services, or lending or borrowing money, or any

Meaning of associated enterprise (1) For the purposes of this section and sections 92, 92B, 92C, 92D, 92E and 92F, “associated enterprise”, in relation to another enterprise, means an enterprise— (a) which participates, directly or indirectly, or through one or more intermediaries, in the management or control or capital of the other enterprise; or (b) in respect of which one or more

Computation of income from international transaction having regard to arm’s length price (1) Any income arising from an international transaction shall be computed having regard to the arm’s length price. Explanation.—For the removal of doubts, it is hereby clarified that the allowance for any expense or interest arising from an international transaction shall also be

Countries with which no agreement exists (1) If any person who is resident in India in any previous year proves that, in respect of his income which accrued or arose during that previous year outside India (and which is not deemed to accrue or arise in India), he has paid in any country with which

Adoption by Central Government of agreement between specified associations for double taxation relief (1) Any specified association in India may enter into an agreement with any specified association in the specified territory outside India and the Central Government may, by notification in the Official Gazette, make such provisions as may be necessary for adopting and

Agreement with foreign countries or specified territories (1) The Central Government may enter into an agreement with the Government of any country outside India or specified territory outside India,— (a) for the granting of relief in respect of—  (i) income on which have been paid both income-tax under this Act and income-tax in that country