Rule 83 - Time period for repatriation of excess money and computation of interest pursuant to secondary adjustments

Time period for repatriation of excess money under section 170(2) and computation of interest income under section 170(4) pursuant to secondary adjustments. 83. (1) For the purposes of section 170(2)(b), the time limit for repatriation of excess money or part thereof in the circumstances mentioned below shall be on or before ninety days from the date stated against each: 1. Primary adjustments to transfer price have been made suo motu by the assessee in his return of income — due date of furnishing of return under section 263(1). 2. Primary adjustments to transfer price as determined in the order of the Assessing Officer or the appellate authority has been accepted by the assessee — date of the order of the Assessing Officer or the appellate authority, as the case may be. 3. Primary adjustment to transfer price is determined by an advance pricing agreement entered into by the assessee under section 168 in respect of a tax year on or before the due date of furnishing of return for the relevant tax year — due date of furnishing of return under section 263(1). 4. Primary adjustment to transfer price is determined by an advance pricing agreement entered into under section 168 in respect of a tax year after the due date of furnishing of return for the relevant tax year — end of the month in which the advance pricing agreement has been entered into. 5. Option is exercised by the assessee as per the safe harbour rules under section 167 — due date of furnishing of return under section 263(1). 6. Primary adjustment to transfer price is determined by the resolution arrived at under mutual agreement procedure under a Double Taxation Avoidance Agreement entered into under section 159(1) or (2) — date of order giving effect under rule 121(10) to such resolution. (2) The imputed per annum interest income on excess money or part thereof, which is not repatriated within the time limit under sub-rule (1), shall be computed— (a) at the one-year marginal cost of fund lending rate of the State Bank of India as on the 1st April of the relevant tax year plus 325 basis points, in cases where the international transaction is denominated in Indian rupee; or (b) at the reference rate of the relevant foreign currency plus 300 basis points, in cases where the international transaction is denominated in foreign currency. (3) The interest referred to in sub-rule (2) shall be chargeable from the date mentioned in the Table in sub-rule (1). (4) The rate of exchange for conversion into rupees of the value of the foreign currency shall be the telegraphic transfer buying rate of such currency as on the last day of the tax year.