International Transaction Tolerance Range for Transfer Pricing—As Notified by the CBDT for Assessment Year 202425

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The Tax Publishers Income Tax--International Transaction Tolerance Range for Transfer Pricing--As Notified by the CBDT for Assessment Year 2024-25 CS. Ayush Rathi CBDT notifies tolerance range for transfer pricing taking into consideration the economic conditions and industry practices. Recently, the CBDT has issued Notification No. 116/2024, dt. 18-10-2024. The present write-up aims at discussing the said notification so as to keep abreast to our readers. 1. What are Safe Harbour Rules? Safe Harbour Rules (SHR) in the context of income-tax are guidelines that allow businesses to adopt predefined margins or criteria to determine the arm's length price (ALP) for international and specified domestic transactions. These rules simplify compliance by reducing the need for detailed transfer pricing analyses and audits, thereby minimizing disputes with tax authorities. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--International Transaction

Tolerance Range for Transfer Pricing--As Notified by the CBDT for Assessment Year 2024-25

CS. Ayush Rathi

CBDT notifies tolerance range for transfer pricing taking into consideration the economic conditions and industry practices. Recently, the CBDT has issued Notification No. 116/2024, dt. 18-10-2024. The present write-up aims at discussing the said notification so as to keep abreast to our readers.

1. What are Safe Harbour Rules?

Safe Harbour Rules (SHR) in the context of income-tax are guidelines that allow businesses to adopt predefined margins or criteria to determine the arm's length price (ALP) for international and specified domestic transactions. These rules simplify compliance by reducing the need for detailed transfer pricing analyses and audits, thereby minimizing disputes with tax authorities.