Safe harbour rules for IT sector to come today

Entire IT sector will be divided into six groups for purpose

The Finance Ministry will come out with safe harbour rules for multi national corporations (MNCs) in  the information technology sector later today.

The entire IT sector will be divided into six groups for the purpose.

The safe harbour rules may prescribe 20 per cent addition to cost for the purpose of tax calculation. In terms of the rules, once multi-national corporations (MNCs) give their cost estimate, the tax department will not go into detail.

These rules would prescribe what the tax department thinks are the operational profits of businesses. Unless an MNC declares less profits from India , the value of their cross-border transactions will not be audited.