Rule 99
Definitions for safe harbour rules for income attribution in case of income from business and profession
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For the purposes of this rule and rules 100 to 102, —
(a) “contract manufacturer” means an Indian company who produces specified electronic goods on behalf of any foreign company in a custom bonded area;
(b) “custom bonded area” means a warehouse as referred to in section 65 of the Customs Act, 1962;
(c) “eligible assessee” means —
| (i) a foreign company engaged in the business of diamond mining which has exercised an option for application of safe harbour rules in accordance with rule 100; or (ii) a foreign company which stores components in a warehouse in a custom bonded area for providing them to a contract manufacturer to be used for manufacturing of specified electronic goods; | |
|---|---|
| (d) | “eligible business” means — |
| (i) a business of selling raw diamonds in any notified special zone as referred under section | |
| 9(9)(c)(ii)(C); or | |
| (ii) the business activity of storage of components in a warehouse in a custom bonded area for sale to a | |
| contract manufacturer to be used for manufacturing of specified electronic goods; | |
| (e) | “gross receipts” means, — |
| (i) in a case referred to clause (d)(i), the aggregate of — | |
| (A) the amount paid or payable to the eligible assessee or to any person on his behalf on | |
| account of sale of raw diamonds by such eligible assessee; and | |
| (B) the amount received or deemed to be received by the eligible assessee or by any person on | |
| his behalf on account of sale of raw diamonds by such eligible assessee; | |
| (ii) in a case referred to clause (d)(ii), the aggregate of — | |
| (A) the amount paid or payable to the eligible assessee or to any person on his behalf on | |
| account of sale of components in a warehouse in a custom bonded area to the contract manufacturer | |
| to be used for manufacturing of specified electronic goods; and | |
| (B) the amount received or deemed to be received by the eligible assessee or by any person on | |
| his behalf on account of sale of components in a warehouse in a custom bonded area to the contract | |
| manufacturer to be used for manufacturing of specified electronic goods; | |
| (f) | “raw diamonds” means diamonds that are – |
| (i) uncut or unpolished; | |
| (ii) unassorted; | |
| (iii) unworked or simply sawn, cleaved or bruted; | |
| (iv) not conflict diamonds as defined by the Kimberley Process; | |
| (v) accompanied by Kimberley Process Certificate issued by the Kimberley Process authority in the | |
| exporting country; and | |
| (vi) falling under Tariff Heading 7102 of the First Schedule to the Customs Tariff Act, 1975 (51 of | |
| 1975); | |
| (g) | “relevant tax year” means the tax year in which the option for safe harbour is exercised; |
| (h) | “specified electronic goods” shall mean — |
| (i) mobile phones; or | |
| (ii) laptops, all-in-one personal computers and tablets; or | |
| (iii) servers and ultra small form factor (USSF); or |
(iv) sub-assemblies to the finished goods mentioned in clause (i) to (iii); or
(v) hearables and wearables and accessories related to the finished goods mentioned in clause (i) to
(iii).