CBDT notifies rule for secondary adjustments in transfer pricing

By Indo Asian News Service | Monday, June 19, 2017 | 8:06:05 PM IST (+05:30 GMT) Comment 0 Comment

New Delhi, June 19 (IANS) The Central Board of Direct Taxes (CBDT) on Monday said it has operationalised the provisions of secondary adjustment in transfer pricing.

New Delhi, June 19 (IANS) The Central Board of Direct Taxes (CBDT) on Monday said it has operationalised the provisions of secondary adjustment in transfer pricing.

The Finance Act, 2017 with effect from April 1, 2018 provided for secondary adjustment by attributing income to the excess money lying in the hands of the associated enterprise, in order to make the actual allocation of funds consistent with that of the primary transfer pricing adjustment.

The provision will apply to primary adjustments exceeding Rs 1 crore made in respect of assessment year 2017-18 onwards.

"Rule 10CB for operationalising the provisions of secondary adjustment has been notified by CBDT on June 15. It prescribes the time limit for repatriation of excess money and the rate of interest to be applied for computing the income in case of failure to repatriate the excess money within the prescribed time limit," CBDT said in a statement here.

"Separate rates of interest have been provided for international transactions denominated in Indian currency and in foreign currency. The rates of interest are applicable on an annual basis," it said.

The time limit of 90 days for repatriation of excess money will begin only when the primary adjustments exceeding Rs 1 crore made in respect of assessment year 2017-18 or later, attains finality.

"Where the transfer pricing order is appealed against by the taxpayer, the time limit for repatriation shall commence only after the appeal is finalised by the appellate authority," it said.

--IANS

mm/vd

Do you like this article?

Copyright  Indo-Asian News Service

User Rating  Rating(0 Votes)

Views  33

Readers Feedback & Discussion

Join India Forums for free to comment on this story. Have an account already? Login to comment.

News Business Articles Index

  

Articles in National, Business

Art - Culture Business Diaspora
Education Health Politics
Religion Sports Sci-Tech
Travel

AROUND THE WORLD NOW

Asia America Australia
Africa Europe Gulf-Middle East
Pakistan Nepal Bhutan
Sri Lanka Bangladesh Maldives

Disclaimer: All Logos and Pictures of various Channels, Shows, Artistes, Media Houses, Companies, Brands etc. belong to their respective owners, and are used to merely visually identify the Channels, Shows, Companies, Brands, etc. to the viewer. Incase of any issue please contact the webmaster.