Definitions for safe harbour rules for income attribution in case of income from business and profession.
99. 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 clauses (i) to (iii); or |
| (v) | | hearables and wearables and accessories related to the finished goods mentioned in clauses (i) to (iii). |
