Safe harbour rules under Section 92CB:
AMandatory ALP rates (per relevant Section)
BMargins/conditions where revenue accepts taxpayer TP
CPenalty exemption
DAudit waiver
Answer & Solution
Correct answer: B. Margins/conditions where revenue accepts taxpayer TP
1. Section 92CB: CBDT can make safe harbour rules.
2. Rules 10TA-10TG prescribe safe harbour margins for IT services, KPO, contract R&D.
3. Once opted (5 years), MAP foregone. CBDT may revise.
_Source: ICAI BoS CA Final Paper 7, Ch 24 "Transfer Pricing"_
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