<h1>CBDT Revises Transfer Pricing Guidance for IT Development Centres; Circular No.3/2013 to be Amended for Clarity.</h1> The Central Board of Direct Taxes (CBDT) in India has reviewed and revised its guidance on transfer pricing for Development Centres, particularly in the IT sector. Circular No.2/2013, which suggested a hierarchy in transfer pricing methods, has been rescinded. Circular No.3/2013, which addressed conditions for identifying Development Centres as contract R&D service providers, will be amended and reissued to provide clearer definitions and criteria. This action aims to eliminate ambiguities and ensure uniformity in tax assessments. Additionally, Safe Harbour Rules are being developed to further clarify the assessment of Development Centres engaged in contract R&D services.