TaxTMI 
TaxTMI 
Definitions
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....exercise of profession, exceeds one crore rupees; and (ii) he has professional experience of not less than ten years.] ^4[(aa)] "contract research and development services wholly or partly relating to software development" means the following, namely: (i) research and development producing new theorems and algorithms in the field of theoretical computer science; (ii) development of information technology at the level of operating systems, programming languages, data management, communications software and software development tools; (iii) development of Internet technology; (iv) research into methods of designing, developing, deploying or maintaining software; (v) software development that produces advances in generic approaches for capturing, transmitting, storing, retrieving, manipulating or displaying information; (vi) experimental development aimed at filling technology knowledge gaps as necessary to develop a software programme or system; (vii) research and development on software tools or technologies in specialised areas of computing (image processing, geographic data presentation, character rec....
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....be deemed to be the employee cost embedded in the total outsourcing expenses; (x) recruitment expenses; (xi) relocation expenses; (xii) training expenses; (xiii) staff welfare expenses; and (xiv) any other expenses related to employees or the employment;] (d) "generic pharmaceutical drug" means a drug that is comparable to a drug already approved by the regulatory authority in dosage form, strength, route of administration, quality and performance characteristics, and intended use; (e) "information technology enabled services" means the following business process outsourcing services provided mainly with the assistance or use of information technology, namely:- (i) back office operations; (ii) call centres or contact centre services; (iii) data processing and data mining; (iv) insurance claim processing; (v) legal databases; (vi) creation and maintenance of medical transcription excluding medical advice; (vii) translation services; (viii) payroll; (ix) remote maintenance; (x) revenue accounting; (xi) support centres; ....
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....give rise to the creation of significant risk for the service provider; and (vi) do not have reliable external comparable services that can be used for determining their arm's length price, but does not include the following services, namely:- (i) research and development services; (ii) manufacturing and production services; (iii) information technology (software development) services; (iv) knowledge process outsourcing services; (v) business process outsourcing services; (vi) purchasing activities of raw materials or other materials that are used in the manufacturing or production process; (vii) sales, marketing and distribution activities; (viii) financial transactions; (ix) extraction, exploration, or processing of natural resources; and (x) insurance and reinsurance;] (h) "non-core auto components" mean auto components other than core auto components; (i) "no tax or low tax country or territory" means a country or territory in which the maximum rate of income-tax is less than fifteen per cent.; (j) "operating expense" means the costs incurred in the prev....
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.... (vi) extraordinary incomes; and (vii) other incomes not relating to normal operations of the assessee; (l) "operating profit margin" in relation to operating expense means the ratio of operating profit, being the operating revenue in excess of operating expense, to the operating expense expressed in terms of percentage; ^11[(la) "relevant previous year" means the previous year relevant to the assessment year in which the option for safe harbour is validly exercised;". ] (m) "software development services" means,- (i) business application software and information system development using known methods and existing software tools; (ii) support for existing systems; (iii) converting or translating computer languages; (iv) adding user functionality to application programmes; (v) debugging of systems; (vi) adaptation of existing software; or (vii) preparation of user documentation, but does not include any research and development services whether or not in the nature of contract research and development services.] ************* NOTES:- 1. I....