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of <h1>CBDT Introduces New Safe Harbour Regime to Reduce Transfer Pricing Disputes for Taxpayers Until 2019-2020.</h1> The Central Board of Direct Taxes (CBDT) has introduced a new safe harbour regime to minimize transfer pricing disputes and provide certainty to taxpayers. Effective from April 1, 2017, the regime will last until the 2019-2020 assessment year. It introduces a new category for low value-adding intra-group services and applies to transactions up to Rs. 200 crore in sectors like software development and IT-enabled services. The regime reduces safe harbour margins for various services and provides a graded structure for knowledge process outsourcing services. Risk spreads on intra-group loans will be linked to LIBOR and SBI MCLR rates. Participation in the regime is optional for taxpayers.
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