If the Transactional Net Margin Method (“TNMM”) is adopted, the comparison should be between the net margins on a transaction basis and not at enterprise level.
Under s 92CA(3), the TPO is entitled to consider material in the public domain which, though not available to the assessee at the time of the TP study, is relevant for the financial year.
The proviso to r 10B(4) which permits the use of data relating to other than the financial year in which the international transaction has been entered into.
Unless and until it is brought on record that the turnover of comparables has undue influence on the margins, it is not the general rule to exclude the same in determining the Arm’s Length Price.
The amendment in the second proviso to s 92C(iii) with regard to the +/-5% variation from the arithmetic mean of the ALP is not retrospective but is prospective from the day from which the amendment is effected, ie 1 October 2009.
Interest under s 234B — Provisions of s 234B are mandatory and consequential in nature.
Bad Debt — Claim of bad debt as claimed by the assessee in respect of the commission from the AE subjected to the provisions Ch X of the Income-tax Act is not allowable.
Under s 92CA(3), the TPO is entitled to consider material in the public domain which, though not available to the assessee at the time of the TP study, is relevant for the financial year.
The proviso to r 10B(4) which permits the use of data relating to other than the financial year in which the international transaction has been entered into.
Unless and until it is brought on record that the turnover of comparables has undue influence on the margins, it is not the general rule to exclude the same in determining the Arm’s Length Price.
The amendment in the second proviso to s 92C(iii) with regard to the +/-5% variation from the arithmetic mean of the ALP is not retrospective but is prospective from the day from which the amendment is effected, ie 1 October 2009.
Interest under s 234B — Provisions of s 234B are mandatory and consequential in nature.
Bad Debt — Claim of bad debt as claimed by the assessee in respect of the commission from the AE subjected to the provisions Ch X of the Income-tax Act is not allowable.
Arm’s Length Price — The burden of proving that the transactions with the Associated Enterprises is at arm’s length is on the assessee — as held by MumTrib in Symantec Software Solutions (P) Ltd v ACIT — In favour of: The Assessee (Partly) ; IT Appeal No. 7894 (Mum.) of 2010 : Assessment Year: 2006–2007
Decided on: 31 May 2011
No comments:
Post a Comment