India’s Central Board of Direct Taxes (CBDT) released draft transfer pricing “safe harbor” rules as part of an initiative by the government to reduce the number of transfer pricing audits and protracted disputes on 14th August 2013,. Under the safe harbor, the Indian income tax authorities will accept certain transfer prices declared by the taxpayer.
The rules will apply for fiscal years 2012-2013 and 2013-2014 and will apply only if a taxpayer opts to be governed by the safe harbor rules before the due date for filing the annual income tax return.
