110. Terms of the agreement.—

(1) An agreement may among other things, include—

(a) the international transactions covered by the agreement;

(b) the agreed transfer pricing methodology, if any;

(c) determination of arm's length price, if any;

(d) the manner in which the arm's length price is to be determined, if any;

(e) definition of any relevant term to be used in clause (b), (c) or (d);

(f) critical assumptions;

(g) rollback provisions referred to in rule 111; and

(h) the conditions, if any, other than provided in the Act or these rules.

(2) The agreement shall not be binding on the Board or the assessee, if there is a change in any of critical assumptions or failure to meet conditions subject to which the agreement has been entered into.

(3) The binding effect of agreement shall cease only if any party has given due notice to the concerned other party or parties.

(4) In case there is a change in any of the critical assumptions or failure to meet the conditions subject to which the agreement has been entered into, the agreement may be revised or cancelled, as the case may be.

(5) The assessee which has entered into an agreement shall give a notice in writing of such change in any of the critical assumptions or failure to meet conditions to the Principal Chief Commissioner of Income-tax (International Taxation), as soon as it is practicable to do so.

(6) The Board shall give a notice in writing of such change in critical assumptions or failure to meet conditions to the assessee, as soon as it comes to the knowledge of the Board.

(7) The revision or the cancellation of the agreement shall be in accordance with rules 115 and 116, respectively.