10TD Safe Harbour

SNo

Eligible International
Transaction

Circumstances

(1)

(3)

1.

Provision of software development services referred to in item (i) of rule 10TC.

The operating profit margin declared by the eligibleassesseefromtheeligible international transaction in relation to operating expense incurred is -

(i) not less than 20 per cent., where the aggregate value of such transactions entered into during the previous year does not exceed a sum of five hundred crore rupees; or

(ii) not less than 22 per cent., where the aggregate value of such transactions entered into during the previous year exceeds a sum of fivehundred crore rupees.

2.

Provisionofinformation technologyenabledservices referred to in item (ii) of rule 10TC.

The operating profit margin declared by the eligibleassesseefromtheeligible international transaction in relation to operating expense is -

(i) not less than 20 per cent., where the aggregate value of such transactions entered into during the previous year does not exceed a sum of five hundred crore rupees; or

(ii) not less than 22 per cent., where the aggregate value of such transactions entered into during the previous year exceeds a sum of fivehundred crore rupees.

3.

Provision of knowledge process outsourcing services referred to in item (iii) of rule 10TC.

The operating profit margin declared by the eligibleassesseefromtheeligible international transaction in relation to operating expense is not less than 25 per cent..

4.

Advancing of intra-group loans referred to in item (iv) of rule

The Interest rate declared in relation to the eligible international transaction is not less

10TC where the amount of loan does not exceed fifty crore rupees.

than the base rate of State Bank of India as on 30th June of the relevant previous year plus 150 basis points.

5.

Advancing of intra-group loans referred to in item (iv) of rule 10TC where the amount of loan exceeds fifty crore rupees.

The Interest rate declared in relation to the eligible international transaction is not less than the base rate of State Bank of India as on 30th June of the relevant previous year plus 300 basis points.

6.

Providing corporate guarantee referred to in sub-item (a) of item (v) of rule 10TC.

The commission or fee declared in relation to the eligible international transaction is at the rate not less than 2 per cent. per annum on the amount guaranteed.

7.

Providing corporate guarantee referred to in sub-item (b) of item (v) of rule 10TC.

The commission or fee declared in relation to the eligible international transaction is at the rate not less than 1.75 per cent. per annum on the amount guaranteed.

8.

Provision of contract research and development services wholly or partly relating to software development referred to in item (vi) of rule 10TC.

The operating profit margin declared by the eligibleassesseefromtheeligible international transaction in relation to operating expense incurred is not less than 30 per cent..

9.

Provision of contract research and development services wholly or partly relating to generic pharmaceutical drugs referred to in item (vii) of rule 10TC.

The operating profit margin declared by the eligibleassesseefromtheeligible international transaction in relation to operating expense incurred is not less than 29 per cent..

10.

Manufacture and export of core auto components referred to in item (viii) of rule 10TC.

The operating profit margin declared by the eligibleassesseefromtheeligible international transaction in relation to operating expense is not less than 12 per cent..

11.

Manufacture and export of non- core auto components referred to in item (ix) of rule 10TC.

The operating profit margin declared by the eligibleassesseefromtheeligible international transaction in relation to operating expense is not less than 8.5 per cent..