Section 92CB of Income Tax Act "Power of Board to make safe harbour rules"
Section 92CB. (1) The determination of arm's length price
under section 92C or section 92CA shall be subject to safe
(2) The Board may, for the purposes of sub-section (1), make rules for safe harbour.
Explanation.-For the purposes of this section, "safe harbour" means circumstances in which the income-tax authorities shall accept the transfer price declared by the assessee.
Section 92CC of Income Tax Act "Advance pricing agreement"
92CC. (1) The Board, with the approval of the Central Government, may enter into an advance pricing agreement with any person, determining the arm's length price or specifying the manner in which arm's length price is to be determined, in relation to an international transaction to be entered into by that person.
(2) The manner of determination of arm's length price referred to in sub-section (1), may include the methods referred to in sub-section (1) of section 92C or any other method, with such adjustments or variations, as may be necessary or expedient so to do.
(3) Notwithstanding anything contained in section 92C or section 92CA, the arm's length price of any international transaction, in respect of which the advance pricing agreement has been entered into, shall be determined in accordance with the advance pricing agreement so entered.
(4) The agreement referred to in sub-section (1) shall be
valid for such period not exceeding five consecutive
previous years as may be specified in the agreement.
(5) The advance pricing agreement entered into shall be binding-
(a) on the person in whose case, and in respect of the transaction in relation to which, the agreement has been entered into; and
(b) on the 49[Principal Commissioner or] Commissioner, and the income-tax authorities subordinate to him, in respect of the said person and the said transaction.
(6) The agreement referred to in sub-section (1) shall not be binding if there is a change in law or facts having bearing on the agreement so entered.
(7) The Board may, with the approval of the Central Government, by an order, declare an agreement to be void ab initio, if it finds that the agreement has been obtained by the person by fraud or misrepresentation of facts.
(8) Upon declaring the agreement void ab initio,-
(a) all the provisions of the Act shall apply to the person as if such agreement had never been entered into; and
(b) notwithstanding anything contained in the Act, for the purpose of computing any period of limitation under this Act, the period beginning with the date of such agreement and ending on the date of order under sub-section (7) shall be excluded:
Provided that where immediately after the exclusion of the aforesaid period, the period of limitation, referred to in any provision of this Act, is less than sixty days, such remaining period shall be extended to sixty days and the aforesaid period of limitation shall be deemed to be extended accordingly.
(9) The Board may, for the purposes of this section,
prescribe50 a scheme specifying therein the manner, form,
procedure and any other matter generally in respect of the
advance pricing agreement.
[(9A) The agreement referred to in sub-section (1), may, subject to such conditions, procedure and manner as may be prescribed50, provide for determining the arm's length price or specify the manner in which arm's length price shall be determined in relation to the international transaction entered into by the person during any period not exceeding four previous years preceding the first of the previous years referred to in sub-section (4), and the arm's length price of such international transaction shall be determined in accordance with the said agreement.]
(10) Where an application is made by a person for entering into an agreement referred to in sub-section (1), the proceeding shall be deemed to be pending in the case of the person for the purposes of the Act.
What is Maintenance and keeping of information and document by persons entering into an international transaction or specified domestic transaction? What is Report from an accountant to be furnished by persons entering into international transaction or specified domestic transaction? Section 92D and 92E of Income Tax Act 1961