Which one of the following statements best reflects the ‘Safe Harbour Clause’, sometimes mentioned in the news?
(a) It protects multinational companies from arbitrary taxation by setting predefined margins for transfer pricing.
(b) It allows domestic firms to bypass environmental regulations during infrastructure development.
(c) It ensures safety standards for foreign ships entering Indian territorial waters.
(d) It provides immunity to internet platforms from liability for user-generated content.

Question

Which one of the following statements best reflects the &lsquo;Safe Harbour Clause&rsquo;, sometimes mentioned in the news?
(a) It protects multinational companies from arbitrary taxation by setting predefined margins for transfer pricing.
(b) It allows domestic firms to bypass environmental regulations during infrastructure development.
(c) It ensures safety standards for foreign ships entering Indian territorial waters.
(d) It provides immunity to internet platforms from liability for user-generated content.

ONLiNE UPSC · Accepted Answer

The &lsquo;safe harbour clause&rsquo; is enumerated under the IT Act 2000. It grants legal protection to internet service providers (ISPs) and other intermediaries (such as social media platforms) from being held liable for third-party content hosted or transmitted on their platforms, provided they comply with certain conditions, such as acting upon government notifications to remove unlawful content. This clause is designed to encourage the growth of online platforms while balancing the need for accountability regarding illegal content.

Economics

Taxation and Regulations

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M Question 1	⏱ 0
Which one of the following statements best reflects the ‘Safe Harbour Clause’, sometimes mentioned in the news? (a) It protects multinational companies from arbitrary taxation by setting predefined margins for transfer pricing. (b) It allows domestic firms to bypass environmental regulations during infrastructure development. (c) It ensures safety standards for foreign ships entering Indian territorial waters. (d) It provides immunity to internet platforms from liability for user-generated content.

Economics

Taxation and Regulations

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