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TMI BlogDefinitionsX X X X Extracts X X X X X X X X Extracts X X X X ..... ave presence in more than two countries; and (ii) the annual receipt of the entity in the year preceding the year in which cost certification is undertaken exceeds ten crore rupees; (II) if he is pursuing the profession of accountancy individually or is a valuer then,- (i) his annual receipt in the year preceding the year in which cost certification is undertaken, from the exercise of profession, exceeds one crore rupees; and (ii) he has professional experience of not less than ten years.] 4 [(aa)] contract research and development services wholly or partly relating to software development means the following, namely: (i) research and development producing new theorems and algorithms in the field of theoretical computer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e guarantee means explicit corporate guarantee extended by a company to its wholly owned subsidiary being a non-resident in respect of any short-term or long- term borrowing. Explanation.- For the purposes of this clause, explicit corporate guarantee does not include letter of comfort, implicit corporate guarantee, performance guarantee or any other guarantee of similar nature; 6 [(ca) employee cost includes,- (i) salaries and wages; (ii) gratuities; (iii) contribution to Provident Fund and other funds; (iv) the value of perquisites as specified in clause (2) of section 17 of the Act ; (v) employment related allowances, like medical allowance, dearness allowance, travel allowance and any other allowance; (vi) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (iii) data processing and data mining; (iv) insurance claim processing; (v) legal databases; (vi) creation and maintenance of medical transcription excluding medical advice; (vii) translation services; (viii) payroll; (ix) remote maintenance; (x) revenue accounting; (xi) support centres; (xii) website services; (xiii) data search integration and analysis; (xiv) remote education excluding education content development; or (xv) clinical database management services excluding clinical trials, but does not include any research and development services whether or not in the nature of contract research and development services; 12 [ (f) intra-group loan means loan advanced to an associated enterpr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the multinational enterprise group; (iii) are not in the nature of shareholder services or duplicate services; (iv) neither require the use of unique and valuable intangibles nor lead to the creation of unique and valuable intangibles; (v) neither involve the assumption or control of significant risk by the service provider nor give rise to the creation of significant risk for the service provider; and (vi) do not have reliable external comparable services that can be used for determining their arm s length price, but does not include the following services, namely:- (i) research and development services; (ii) manufacturing and production services; (iii) information technology (software development) services; (iv) k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtained liabilities; (iii) pre-operating expenses; (iv) loss arising on account of foreign currency fluctuations; (v) extra-ordinary expenses; 13 [ (vi) loss on transfer of assets or investments other than assets, on which depreciation is included in the operating expense; ] (vii) expense on account of income-tax; and (viii) other expenses not relating to normal operations of the assessee. 9 [ Provided that reimbursement to associated enterprises of expenses incurred by the associated enterprises on behalf of the assessee shall be at cost: Provided further that amounts recovered from associated enterprises on account of expenses incurred by the assessee on behalf of the associated enterprises and which relate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g computer languages; (iv) adding user functionality to application programmes; (v) debugging of systems; (vi) adaptation of existing software; or (vii) preparation of user documentation, but does not include any research and development services whether or not in the nature of contract research and development services.] *********** Notes :- 1. Inserted vide Notification No. 73/2013 September 18, 2013 2. Substituted vide Not. 11/2015 - Dated 4-2-2015 before it was read as, Safe Harbour Rules 3. Inserted vide Not. 46/2017 - Dated 7-6-2017 w.e.f. 1st day of April, 2017 4. Existing clause (a) shall be read as clause (aa) vide Not. 46/2017 - Dated 7-6-2017 w.e.f. 1st day of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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