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Nothing contained in sub-rule (1) shall apply in a case
where the aggregate value, as recorded in the books
of account, of international transactions entered into
by the assessee does not exceed one crore rupees:
- Provided
that the assessee shall be required to substantiate,
on the basis of material available with him, that
income arising from international transactions entered
into by him has been computed in accordance with section
92.
- The
information specified in sub-rule (1) shall be supported
by authentic documents, which may include the following:
-
official publications, reports, studies and data
bases from the Government of the country of residence
of the associated enterprise, or of any other
country;
-
reports of market research studies carried out
and technical publications brought out by institutions
of national or international repute;
-
price publications including stock exchange and
commodity market quotations;
- published
accounts and financial statements relating to
the business affairs of the associated enterprises;
-
agreements and contracts entered into with associated
enterprises or with unrelated enterprises in respect
of transactions similar to the international transactions;
-
letters and other correspondence documenting any
terms negotiated between the assessee and the
associated enterprise;
-
documents normally issued in connection with various
transactions under the accounting practices followed.
- The
information and documents specified under sub-rules
(1) and (2), should, as far as possible, be contemporaneous
and should exist latest by the specified date referred
to in clause (iv) of section 92F:
Provided
that where an international transaction continues
to have effect over more than one previous years,
fresh documentation need not be maintained separately
in respect of each previous year, unless there is
any significant change in the nature or terms of the
international transaction, in the assumptions made,
or in any other factor which could influence the transfer
price, and in case of such significant change, fresh
documentation as may be necessary under sub-rules
(1) and (2) shall be maintained bringing out the impact
of the change on the pricing of the international
transaction.
- The
information and documents specified in sub-rules (1)
and (2) shall be kept and maintained for a period
of eight years from the end of the relevant assessment
year.
10E.
Report from an accountant to be furnished under section
92E
The
report from an accountant required to be furnished under
section 92E by every person who has entered into an
international transaction during a previous year shall
be in Form No. 3CEB and be verified in the manner indicated
therein.
- Rule
11 shall be omitted;
- in
the appendix, after Form No. 3CEA, the following form
shall be inserted, namely:
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