Rule 10TD

Rule 10TD — the law in short

What the courts have decided on section Rule 10TD, in one screen. Read this first; open an entry when you need the facts, the reasoning and the source.

• Iomedia India Pvt Ltd v ACIT ITATCuts both waysValidity unconfirmed
  I opted into the safe harbour and billed my AE at the prescribed mark-up. The TPO has still made an adjustment for interest on receivables collected late. Can he do that?
  Yes. Safe harbour under s.92CB and the Rule 10T series covers only an 'eligible international transaction' as exhaustively defined in Rule 10TC, and interest on outstanding receivables is not among clauses (i) to (x) of that definition. So the adjustment on delayed receivables is not subsumed in the mark-up offered under the safe harbour rules. On quantum, the Tribunal substituted LIBOR plus 200 basis points for the LIBOR plus 400 basis points adopted by the TPO and DRP.

Listed strongest first: Supreme Court, then High Court, then Tribunal, then CBDT. Nothing here has yet been read in full by a chartered accountant — open an entry to see where it came from.