CBDT notifies safe harbour rules for AY 2020-21

by Nidhi Bhati

The Central Board of Direct Taxes (CBDT) has notified changes to Rules 10TD and 10TE of Income Tax Rules relating to safe harbour rules. The CBDT stated that rates applicable from Assessment Year (AY) 2017-18 to 2019-20 will continue to apply for AY 2020-21. Transfer pricing implies the prices at which various overseas divisions of a company transact with each other. Introduced by the CBDT in 2009, safe harbour refers to the circumstances under which income-tax authorities will accept the transfer price declared by the assessee without any question or scrutiny. It aims to provide a certain degree of certainty to taxpayers. A safe harbour regime will, in particular, benefit taxpayers in the services sector by adopting a transfer pricing mark-up in the range prescribed to avoid protracted litigation.

References
1. https://www.incometaxindia.gov.in/communications/notification/notification_25_2020.pdf
2. https://www.thehindubusinessline.com/economy/policy/government-notifies-safe-harbour-rules-for-ay-2020-21-no-change-in-rates/article31640111.ece
CMIE STATISTICS
Unemployment Rate
Per cent
23.6 -0.2
Consumer Sentiments Index
Base September-December 2015
40.1 -0.9
Consumer Expectations Index
Base September-December 2015
41.4 -0.7
Current Economic Conditions Index
Base September-December 2015
38.0 -1.2
Quarterly CapEx Aggregates
(Rs.trillion) Jun 19 Sep 19 Dec 19 Mar 20
New projects 1.12 2.19 5.02 3.08
Completed projects 0.88 0.85 1.65 1.30
Stalled projects 0.13 0.41 0.60 0.59
Revived projects 0.29 0.54 0.83 0.42
Implementation stalled projects 0.98 0.85 0.15 5.79
Updated on: 30 May 2020 8:28PM
Quarterly Financials of Listed Companies
(% change) Jun 19 Sep 19 Dec 19 Mar 20
All listed Companies
 Income 4.7 -2.2 -1.7 -0.2
 Expenses 2.7 -3.1 -2.2 1.2
 Net profit 17.4 -2.3 -9.9 -3.7
 PAT margin (%) 6.2 5.3 5.2 9.5
 Count of Cos. 4,471 4,430 4,379 366
Non-financial Companies
 Income 2.4 -6.4 -5.4 -4.1
 Expenses 1.7 -6.7 -6.3 -3.6
 Net profit -8.6 -14.5 -13.0 2.6
 PAT margin (%) 6.3 5.8 5.8 11.0
 Net fixed assets 10.4 21.5
 Current assets 4.9 9.1
 Current liabilities 4.9 8.1
 Borrowings 8.5 15.1
 Reserves & surplus 6.1 14.3
 Count of Cos. 3,349 3,325 3,280 294
Numbers are net of P&E
Updated on: 30 May 2020 8:28PM
Annual Financials of All Companies
(% change) FY17 FY18 FY19
All Companies
 Income 6.1 8.1 14.7
 Expenses 6.1 9.6 15.0
 Net profit 26.2 -39.9 20.5
 PAT margin (%) 3.3 2.1 3.2
 Assets 8.6 10.9 9.9
 Net worth 9.6 7.5 9.3
 RONW (%) 5.8 3.5 5.3
 Count of Cos. 28,112 25,794 18,040
Non-financial Companies
 Income 5.8 8.3 15.4
 Expenses 6.0 8.4 15.9
 Net profit 22.9 -8.7 18.8
 PAT margin (%) 2.9 2.8 4.0
 Net fixed assets 9.2 6.9 5.7
 Net worth 8.9 6.0 8.8
 RONW (%) 6.2 5.7 8.1
 Debt / Equity (times) 1.1 1.0 0.8
 Interest cover (times) 2.0 2.2 2.8
 Net working capital cycle (days) 85 76 57
 Count of Cos. 22,951 21,018 14,184
Numbers are net of P&E
Updated on: 29 May 2020 9:58AM