Home Audit & Assurance CBDT amends definition of intra-group loans for Safe Harbour [Read Notification]

CBDT amends definition of intra-group loans for Safe Harbour [Read Notification]

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CBDT amends definition of intra-group loans for Safe Harbour [Read Notification]

CBDT amends definition of intra-group loans for Protected Harbour [Read Notification]

The Central Board of Direct Taxes (CBDT) has amended the definition of intra-group loans for Protected Harbour through issuing Notification.

The Notification learn as follows:

In train of the powers conferred by sub-section (2) of part 92CB learn with part 295 of the Revenue-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the next guidelines additional to amend the Revenue-tax Guidelines, 1962.

These guidelines could also be referred to as the Revenue-tax (Twenty-Ninth Modification) Guidelines, 2023. These guidelines shall come into power from the first day of April, 2024.

Within the Revenue-tax Guidelines, 1962,–

(a) in rule 10TA, with impact from the date of publication of this notification within the Official Gazette,—

(i) for clause (f), the next clause shall be substituted, particularly:-

‘(f) “intra-group mortgage” means a mortgage superior to an related enterprise being a non-resident, the place the mortgage—

(i) just isn’t superior by an enterprise, being a monetary firm together with a financial institution or a monetary establishment or an enterprise engaged in lending or borrowing within the regular course of enterprise; and

(ii) doesn’t embrace a credit score line or every other mortgage facility which has no mounted time period for reimbursement;’;

(ii) in clause (j), for sub-clause (vi), the next sub-clause shall be substituted, particularly:-

“(vi) loss on switch of belongings or investments apart from belongings, on which depreciation is included within the working expense;”;

(iii) in clause (okay), for sub-clause (iii), the next sub-clause shall be substituted, particularly:-

“(iii) earnings on switch of belongings or investments apart from belongings, on which depreciation is included within the working expense;”;

(b) in rule 10TD,—

(i) in sub-rule (2A), within the Desk—

(A) in Sl.No. 4, in column quantity (3),–

(I) in clause (i), the phrase “CRISIL” shall be omitted;

(II) in clause (ii), the phrase “CRISIL” shall be omitted;

(III) in clause (iii), the phrase “CRISIL” shall be omitted;

(IV) in clause (iv), the phrase “CRISIL” shall be omitted;

(B) for Sl.No. 5 and the entries relating thereto, the next serial quantity and entries shall be substituted, particularly:

“5. Advancing of intra-group loans referred to in clause (iv) of rule 10TC the place the quantity of mortgage is denominated in international forex

The rate of interest declared in relation to the eligible worldwide transaction just isn’t lower than the reference fee of the related international forex as on thirtieth September of the related earlier yr plus, –

(a) If quantity of mortgage superior to the related enterprise together with loans to all related enterprises doesn’t exceed a sum equal to 2 hundred and fifty crore Indian rupees within the mixture as on thirty first March of the related earlier yr:

(i) 150 foundation factors, the place the related enterprise has a credit standing of AAA, AA+, AA, AA-, A+, A, A- or equal;

(ii) 300 foundation factors, the place the related enterprise has credit standing of BBB+, BBB, BBB- or equal;

(iii) 400 foundation factors, the place the related enterprise has a credit standing of BB+, BB, BB-, B+, B, B-, C+, C , C-, D or equal or the place the credit standing of the related enterprise just isn’t accessible;

(b) If quantity of mortgage superior to the related enterprise together with loans to all related enterprises exceeds a sum equal to 2 hundred and fifty crore Indian rupees within the mixture as on thirty first March of the related earlier yr:

(i) 150 foundation factors, the place the related enterprise has a credit standing of AAA, AA+, AA, AA-, A+, A, A- or equal;

(ii) 300 foundation factors, the place the related enterprise has credit standing of BBB+, BBB, BBB- or equal;

(iii) 450 foundation factors, the place the related enterprise has a credit standing of BB+, BB, BB-, B+, B, B- or equal;

(iv) 600 foundation factors, the place the related enterprise has credit standing of C+, C , C-, D or equal or the place the credit standing of the related enterprise just isn’t accessible.”;

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