Scope of Safe Harbour Rules expanded [Notification No.5/2016 dated 17-2-2016 :

Under section 92CB(2), the CBDT is empowered to make rules for safe harbour. Accordingly, in exercise of the powers conferred under the said section read with section 295, the CBDT has amended Rules 10THA, 10THB and 10THC:

Rule	Particulars	Existing Provision	Amendment
10THA .	Meaning of “Eligible assessee”	A person who has exercised a valid option for application of safe harbor rules and is a Government company engaged in the business of generation, transmission or distribution of electricity	The scope of eligible assesse under Rule 10THA has been expanded to include a person who has exercised a valid option for application of safe harbor rules in accordance with the provisions of Rule 10THC and is Government company engaged in the business of supply of electricity.
10THB	Eligible specified domestic transaction	A specified domestic transaction undertaken by an eligible assesse and which comprises of, inter alia, supply of electricity by a generating company.	Rule 10THB has been amended to provide that an eligible specified domestic transaction would include a specified domestic transaction undertaken by an eligible assessee and which comprises of, inter alia, supply of electricity. The requirement that supply of electricity should be by a generating company has been removed.