Executive Summary:
This notification from the Central Board of Direct Taxes amends the Income-tax Rules of 1962. The amendment introduces changes to Form No. 3CEFA within Appendix II, specifically regarding information required for eligible international transactions. These rules are called the "Income-tax 21st Amendment Rules, 2017" and are effective from April 1, 2017.
Key Points / Main Content:
Amendments to Form No. 3CEFA (Appendix II, Income-tax Rules, 1962):
* Eligible International Transaction I (Sl. No. 3):
* After item d, insert item e: "Employee cost in relation to operating expense declared".
* Renumber existing items e, f, and g as f, g, and h respectively.
* Eligible International Transaction II (Sl. No. 4):
* After item d, insert items e and f:
* e: "Currency of denomination of the amount of loan for each loan transaction"
* f: "Whether credit rating of AE has been done. If yes, the credit rating rank and the name of the credit rating agency".
* Renumber existing items e and f as g and h respectively.
* After Sl. No. 9, insert Sl. No. 10:
* Relates to "receipt of low value-adding intragroup services as referred to in item x of rule 10TC".
* Requires details including:
* Name and address of associated enterprises (AE).
* Country or territory where AE is located.
* Whether that country/territory is a low or no-tax jurisdiction.
* Description of the eligible international transaction.
* Amount paid/payable for the transaction.
* Markup charged (%).
* Whether transfer price complies with rule 10TD.
Impact Analysis:
Taxpayers/Assessees:
* Impact: Taxpayers involved in international transactions, especially those using Form No. 3CEFA, will need to provide additional information.
* Action Required: Taxpayers must comply with the new reporting requirements when disclosing eligible international transactions, including providing details on employee costs, loan currency, AE credit ratings, and low value-adding intragroup services.
Tax Professionals/Advisors:
* Impact: Tax advisors need to be aware of the amended rules to guide their clients appropriately.
* Action Required: Update knowledge on the new requirements and assist clients in gathering and reporting the necessary information in Form No. 3CEFA.
Central Board of Direct Taxes (CBDT):
* Impact: Responsible for implementing and overseeing the amended rules.
* Action Required: Ensure the effective communication and enforcement of the new regulations.
Key Entities Referenced
Incometax Act, 1961: A tax law in India. Specifically, section 295 read with subsection 2 of section 92CB of the Incometax Act, 1961 (43 of 1961) is referenced.
Central Board of Direct Taxes: The governmental agency responsible for making amendments to the Incometax Rules.
Incometax Rules, 1962: The rules governing income tax in India, which this notification amends.
Incometax 21st Amendment Rules, 2017: The name given to the specific set of amendments introduced by this notification.
Appendix II: A section within the Incometax Rules, 1962 that is being modified.
Form No. 3CEFA: A form within Appendix II of the Incometax Rules, 1962 that is being modified.
rule 10TC: Rule number that defines the meaning of low value adding intragroup services
rule 10TA: Rule number that defines the meaning of a no tax or low tax country or territory.
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No. 637] NEW DELHI, TUESDAY, JULY 18, 2017/ASADHA 27, 1939
िव(cid:7275) म(cid:7074)ं ालय
(राजस्व िवभाग)
(केन्(cid:7076)ीय (cid:7079)त्यक्ष कर बोडर्)
अिधसूचना
नई िदल्ली, 18 जुलाई, 2017
आय-कर
सा.का.िन. 891(अ).—केन्(cid:7076)ीय (cid:7079)त्यक्ष कर बोडर्, आय-कर िनयम, 1962 आय-कर अिधिनयम, 1961 (1961 का
43) की धारा 92 खग की उप-धारा (2) के साथ पिठत धारा 295 (cid:7367)ारा (cid:7079)द(cid:7275) शि(cid:7334)य(cid:7298) का (cid:7079)योग करते हुए, म(cid:7286) और संशोधन
करने के िलए और िनयम बनाता ह,ै अथार्त् :-
1. (1) इन िनयम(cid:7298) का संिक्ष(cid:7385) नाम आय-कर (21वां संशोधन) िनयम, 2017 ह ै।
(2) ये 1 अ(cid:7079)ैल, 2017 से (cid:7079)वृ(cid:7275) ह(cid:7298)गे और (cid:7079)वृत् त हुए समझे जाएंगे ।
2. आय-कर िनयम, 1962 के पिरिश(cid:7397) II म(cid:7286), (cid:7079)रूप संख्या 3गडचक के पैरा 2 म(cid:7286), “पा(cid:7074) अन्तरार्(cid:7398)ीय सं(cid:7390)वहार” शीषर्क के
अधीन –
(I) (cid:7059)म संख्या 3 म(cid:7286),-
(i) मद (घ) के प(cid:7391)ात् िन(cid:7388)िलिखत मद अन्तःस्थािपत की जाएगी, अथार्त् :-
“(ङ) घोिषत (cid:7079)चालन व् यय के संबंध म(cid:7286) कमर्चारी लागत”
(ii) िव(cid:7378)मान मद (cid:7286) (ङ), मद (च) और मद (छ) (cid:7059)मशः (च), (छ) और (ज) के रूप म(cid:7286) पुनःसंख्यांिकत िकया जाएगा,
अथार्त् :-
4382 GI/2017 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
(II) (cid:7059)म संख्या 4 म(cid:7286),-
(i) मद (घ) के प(cid:7391)ात्, िन(cid:7388)िलिखत मद (cid:7286)अन्तःस्थािपत की जाएंगी, अथार्त् :-
“(ङ) (cid:7079)त्येक उधार सं(cid:7390)वहार के िलए उधार की रकम की अिभधान की कर(cid:7286)सी”
(च) क्या ए ई (cid:7079)त्यय रे(cid:7411)टंग िकया गया ह ै? यिद हां, (cid:7079)त्यय रे(cid:7411)टंग र(cid:7289)क और (cid:7079)त्यय रे(cid:7411)टंग अिभकरण का नाम
(ii) िव(cid:7378)मान मद (cid:7286)(ङ) और (च) (cid:7059)मशः (छ) और (ज) के रूप म(cid:7286) संख्यांिकत िकया जाएगा ;
(III) (cid:7059)म संख्या 9 के प(cid:7391)ात्, िनम् निलिखत (cid:7059)म संख्या 10 और उससे सम्बिन्धत (cid:7079)िवि(cid:7397)यां अन्तःस्थािपत की
जाएंगी, अथार्त् :-
(cid:7059). सं. पा(cid:7074) अन्तरार्(cid:7398)ीय सं(cid:7390)वहार पा(cid:7074) की बाबत िविशि(cid:7397)यां िटप्पिणयां
“10 क्या िनयम 10नग की मद (X) म(cid:7286) िन(cid:7416)दर्(cid:7397) के रूप म(cid:7286) िन(cid:7388) मूल्य पिरवधर्न अन्तः समूह हां नह(cid:7277)
सेवा(cid:7312) की (cid:7079)ाि(cid:7385) की बाबत पा(cid:7074) िनधार्िरती ने अन्तरार्(cid:7398)ीय सं(cid:7390)वहार िकया ह ै?
यिद हां, िन(cid:7388)िलिखत ब्यौरे द(cid:7286) :
(क) सहयु(cid:7334) उ(cid:7378)म (एई) का नाम और पता, िजसके साथ पा(cid:7074) अन्तरार्(cid:7398)ीय
सं(cid:7390)वहार िकया गया ह ै।
(ख) दशे या राज्यक्षे(cid:7074), िजसम(cid:7286) सहयु(cid:7334) उ(cid:7378)म (उ(cid:7378)म(cid:7298)) अविस्थत ह ै।
(ग) क्या िनयम 10नक म(cid:7286) यथापिरभािषत राज्य या राज्यक्षे(cid:7074), जो कर रिहत या
िन(cid:7388) कर दशे या राज्यक्षे(cid:7074) कर ह ै।
(घ) पा(cid:7074) अन्तरार्(cid:7398)ीय सं(cid:7390)वहार का वणर्न ।
(ङ) ऐसे सं(cid:7390)वहार के संबंध म(cid:7286) संद(cid:7275) रकम या संदाय ।
(च) (cid:7079)ितशत म(cid:7286) (cid:7079)भािरत अिधक मूल्य िनधार्िरत करना ।¹Hkkx IIμ[k.M 3 (i)º Hkkjr dk jkti=k % vlk/kj.k 3
(छ) क्या अंतरण कीमत िनयम 10नघ के अधीन िविन(cid:7416)दर्(cid:7397) पिरिस्थितय(cid:7298) के
अनुसरण म(cid:7286) ह ै।
[अिधसूचना सं. 62 /2017/फा. सं. 370142/20/2017/टीपीएल]
राजेश कुमार केडीया, िनदशे क (कर नीित और िवधान)
िटप्पण : मूल िनयम भारत के राजप(cid:7074), असाधारण भाग II, खंड 3, उप-खंड (ii) (cid:7367)ारा का.आ. 969(अ), तारीख 26 माचर्,
1962 (cid:7367)ारा (cid:7079)कािशत िकए गए और अिधसूचना संख्या सा.का.िन. 865(अ), तारीख 12 जुलाई, 2017 (cid:7367)ारा
अंितम बार संशोिधत िकए गए।
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 18th July, 2017
INCOME-TAX
G.S.R. 891(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 Income-tax (21st Amendment) Rules, 2017.
(2) They shall come into force and shall be deemed to have come into force from the 1st day of
April, 2017.
2. In the Income-tax Rules, 1962, in Appendix II, in Form No. 3CEFA, in paragraph 2, under the
heading “Eligible International Transaction”___
(I) in Sl. No. 3, ___
(i) after item (d), following item shall be inserted, namely:___
“(e) Employee cost in relation to operating expense declared
”;
(ii) the existing items (e), (f) and (g) shall be renumbered as (f), (g) and (h) respectively;
(II) in Sl. No. 4, ___
(i) after item (d), the following items shall be inserted, namely:___
“(e) Currency of denomination of the amount of loan for each loan transaction
(f) Whether credit rating of AE has been done? If yes, the credit rating rank and the name of the
credit rating agency
”;
(ii) the existing items (e) and (f) shall be renumbered as (g) and (h) respectively;
(III) after Sl. No. 9, the following Sl. No. 10 and entities relating thereto shall be inserted, namely:___4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
Sl. No. Particulars in respect of eligible international transaction Remarks
“10. Has the eligible assessee entered into any international transaction Yes No
in respect of receipt of low value-adding intra-group services as
referred to in item (x) of rule 10TC?
If yes, provide the following details:
(a) Name and address of the associated enterprises (AE) with
whom the eligible international transaction has been
entered into.
(b) Name of the country or territory in which AE (s) is located.
(c) Whether country or territory is a no tax or low tax country
or territory as defined in rule 10TA.
(d) Description of the eligible international transaction.
(e) Amount paid or payable in relation to such transaction.
(f) Mark-up charged in per cent.
(g) Whether transfer price is in accordance with the
circumstances specified under rule 10TD.
”;
[Notification No. 62 /2017/ F. No. 370142/ 20/2017-TPL]
RAJESH KUMAR KEDIA, Director (Tax Policy and Legislation)
Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3,
Sub-section (ii) vide number S.O. 969(E) dated the 26th March, 1962 and were last amended vide
notification number G.S.R. 865(E), dated the 12th July, 2017.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.