Rule 10THC - Safe Harbour

Safe harbour transfer pricing: declared transfer price accepted when specified pricing conditions and methodologies are met.

Rule 10THC provides that, if an eligible assessee validly exercises the option under rule 10THD for an eligible specified domestic transaction, the declared transfer price will be accepted where specified circumstances are met: electricity tariffs must be determined or methodology approved by the Appropriate Commission under the Electricity Act; milk prices must be quality based (fat and SNF), independent of quantity or member shareholding/voting, and publicly declared. No comparability adjustments under the second proviso to section 92C(2) shall be applied, and transfer pricing documentation requirements remain applicable.