Definitions for safe harbour rules for income attribution in case of income from business and profession

Key definitions.

• Eligible assessee: (i) a foreign company engaged in the business of diamond mining that has exercised an option under rule 100; or (ii) a foreign company that stores components in a warehouse in a custom bonded area to supply to a contract manufacturer for manufacturing specified electronic goods.
• Eligible business: (i) selling raw diamonds in a notified special zone referred to in section 9(9)(c)(ii)(C); or (ii) storing components in a warehouse in a custom bonded area for sale to a contract manufacturer to be used for specified electronic goods.
• Contract manufacturer: an Indian company that produces specified electronic goods on behalf of a foreign company in a custom bonded area. Custom bonded area is a warehouse referred to in section 65 of the Customs Act, 1962.
• Gross receipts: for each business, the aggregate of the amount paid or payable to the eligible assessee, or to any person on its behalf, for the sale, and the amount received or deemed received by it or on its behalf for the sale.
• Raw diamonds: uncut or unpolished, unassorted, unworked or simply sawn, cleaved or bruted, not conflict diamonds as defined by the Kimberley Process, accompanied by a Kimberley Process Certificate, and falling under Tariff Heading 7102 of the First Schedule to the Customs Tariff Act, 1975.
• Specified electronic goods: mobile phones; laptops, all-in-one personal computers and tablets; servers and ultra small form factor; sub-assemblies of those; and hearables, wearables and related accessories.
• Relevant tax year: the tax year in which the option for safe harbour is exercised.