Section 92C(1) provides that ALP of international transaction and SDT shall be determined by adopting “MAM”, having regard to the nature of transaction or class of transaction or class of associated persons or functions performed by such persons or such other relevant factors as the Board may prescribed. Rule 10C lays down the guiding principles […]
Very apt observations of Tribunal on selection of MAM
Fortune Infotech Ltd. v ACIT [2016] 66 taxmann.com 92 (Ahmedabad – Trib.) The Tribunal observed that “A method selected for benchmarking must be a permissible method to be included in the consideration zone, but even it’s presence in the consideration zone is not good enough to justify its application for benchmarking the international transactions on […]
WHETHER TRANSFER PRICING LAW IS APPLICABLE IF NONE OF THE METHODS CAN BE APPLIED
The ALP has to be computed as per section 92C and Rules thereunder. This is a statutory mandate. An interesting issue arises as to whether the taxpayer can argue that it is impossible to compute ALP as per any of the prescribed methods and therefore transfer pricing provisions are not applicable to it or in […]