Unsafe harbour

Given that the Income Tax Act had first talked about bringing in ‘safe harbour’ rules in April 2009 and it took more than three years to constitute the N Rangachary committee to formulate them, the norms notified on Wednesday were long overdue—after a discussion period of a couple of weeks, the norms will be finalised. Once done, this will make life much simpler for overseas assesses who run development and/or other centres in India since, subject to the ‘safe harbour’ floor rates, the taxman will simply accept the company’s financial statements as true.

Read Full Story>>