The concept of 'Secondary Adjustment' was introduced in
Finance Act 2017 by introducing new Section 92CE in the Indian
Income Tax Act (the Act) to align transfer pricing provisions with
international best practices. Additionally, Finance Bill 2019
clarified certain anomalies on the applicability of these
provisions, liberalized repatriation mechanism, and provided
one-time tax payment option to the taxpayers as an alternative to
actual repatriation.
In line with the provisions in the Act, on 15 June 2017, to
operationalize the secondary adjustment regulations, Central Board
of Direct Taxes (CBDT) had prescribed (vide Notification No.
52/2017)1 Rule 10CB in Income-tax Rules, 1962 (the
Rules) to provide the following:
