Discuss in brief a few benefits derived from the Safe Harbour Rules, relating to the transfer pricing regulations.

Benefits derived from Safe Harbour Rules are as under Compliance Simplicity: Safe Harbour Rules tends to substitute requirements in place of existing regulations, thereby reducing compliance burden and associated costs for eligible taxpayers, who would otherwise be obligated to dedicate resources and time to collect, analyze and maintain extensive data to support their inter-company transactions. Certainty and Reduce litigation: Electing Safe Harbours may grant a greater sense of assurance to taxpayers regarding acceptability of their transfer price by the authorities without onerous audits. This conserves administrative and monetary resources for both the taxpayer and tax administration. Administrative Simplicity: Since Tax administration would be required to carry out only a minimal examination in respect of taxpayers opting for safe harbours, they can channelize their efforts to examine more complex and high - risk transactions and high- risk transactions and taxpayers.