The document provides an overview of transfer pricing regulations in India. It discusses:
1) The legal framework governing transfer pricing, including key sections of the Income Tax Act relating to computation of income from international transactions at arm's length prices.
2) The procedures involved in transfer pricing assessments, including reference to the transfer pricing officer, draft order process, and appeal mechanisms.
3) Methods for determining arm's length prices for international transactions, including comparable uncontrolled price method, resale price method, cost plus method, profit split method, and transactional net margin method.
4) Requirements for transfer pricing documentation and the accountant's role in furnishing transfer pricing reports as required by section 92E of
This is an attempt to explain the broad concept of and rationale behind Transfer Pricing Regulations. Also gives a high level view of the scheme of Indian Transfer Pricing Regulations as on date. Points out the TP controversies in India. Above all gives a well spirited guidance on dealing with TP in India.
Objectives & Agenda :
To understand the relevance of Form 3CEB - the purpose and rationale for which the form is used and the content of certification in the said form. The webinar shall additionally cover the practical issues in relation to the certification and filing and guidance note issued by Institute of Chartered Accountants of India ("ICAI") to assist the professionals while undertaking the certification. Furthermore, we shall touch upon few suggestions for the assessee as well as the professionals and the manner of certification in other countries.
This is an attempt to explain the broad concept of and rationale behind Transfer Pricing Regulations. Also gives a high level view of the scheme of Indian Transfer Pricing Regulations as on date. Points out the TP controversies in India. Above all gives a well spirited guidance on dealing with TP in India.
Objectives & Agenda :
To understand the relevance of Form 3CEB - the purpose and rationale for which the form is used and the content of certification in the said form. The webinar shall additionally cover the practical issues in relation to the certification and filing and guidance note issued by Institute of Chartered Accountants of India ("ICAI") to assist the professionals while undertaking the certification. Furthermore, we shall touch upon few suggestions for the assessee as well as the professionals and the manner of certification in other countries.
To understand the meaning, need,objective and issues of secondary adjustment and to know the intent of government to introduce secondary adjustment in transfer pricing. Method of secondary adjustment adopted by India. To analyse Union Budget 2019 amendments regarding secondary adjustment. Finally, to know the method of secondary adjustment adopted in other countries.
Objectives & Agenda :
To understand the rationale behind Transfer Pricing and the need for documentation. To know the contents of Transfer Pricing Report in detail and appendix to Transfer Pricing Report. The webinar would cover a detailed process for preparation of Transfer Pricing Report.
Key Takeaways:
Provisions governing RPT under Companies Act, 2013, SEBI (LODR), IND AS
Statutory compliances for RPT
Approval requirements for RPT
Disclosures norms for RPT under various statutes
This ppt describe the Definition of TP with introduction to Transfer pricing and Objectives with types of TP addressed.
Subscribe to Vision Academy YouTube Channel
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
To understand the meaning, need,objective and issues of secondary adjustment and to know the intent of government to introduce secondary adjustment in transfer pricing. Method of secondary adjustment adopted by India. To analyse Union Budget 2019 amendments regarding secondary adjustment. Finally, to know the method of secondary adjustment adopted in other countries.
Objectives & Agenda :
To understand the rationale behind Transfer Pricing and the need for documentation. To know the contents of Transfer Pricing Report in detail and appendix to Transfer Pricing Report. The webinar would cover a detailed process for preparation of Transfer Pricing Report.
Key Takeaways:
Provisions governing RPT under Companies Act, 2013, SEBI (LODR), IND AS
Statutory compliances for RPT
Approval requirements for RPT
Disclosures norms for RPT under various statutes
This ppt describe the Definition of TP with introduction to Transfer pricing and Objectives with types of TP addressed.
Subscribe to Vision Academy YouTube Channel
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
Introduction to TransPrice Knowledge AllianceAkshay KENKRE
TransPrice flagged off a knowledge circle amongst its members, clients and associates; the purpose of which is to spread awareness about the transfer pricing issues in the industry; to value add by representing the issues discussed in the forum at various larger forums and ultimately provide plausible solutions.
I hereby invite the industry members who are affected by Transfer Pricing and International taxation to join the group.
Interested professionals can write to me on akshaykenkre@transprice.in
This is purely a knowledge awareness session and not a business initiative.
Thanks a lot
Akshay Kenkre
Government contractors are under more scrutiny by the DCAA to effectively manage their contracts and stay compliant in a very competitive environment. The challenge for government contractors is adhering to the DCAA regulatory environment while maintaining profitability on your contracts. Understanding the regulatory environment is critical to running profitable contracts that comply with the changing landscape of the DCAA, FAR and CAS regulations. Accounting for key details of a project or contract, including measuring the degree of project completion, remains a huge challenge for government contractors. Join the Raffa Technology team for an update on the regulatory landscape and the best practices for keeping your organization DCAA compliant.
IFRS 15 - the new revenue recognition standard EY Belgium
The IASB and the FASB have jointly issued a new revenue standard, IFRS 15 Revenue from Contracts with Customers, which will replace the existing IFRS and US GAAP revenue guidance.Find out more in our comprhensive brochure.
This is a presentation created by our team on the new upcoming transfer pricing field. Please view and leave your comments. brainstorming is always welcome.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
1. Transfer Pricing – A Discussion
Gurgaon Branch of NIRC of ICAI
10
th
October, 2015 by CA Sanjay Agrawal
2. TARGET AUDIANCE
• All our new professionals like to start ……..
• All our seniors who wish to enter into ………
• All other professionals who are not having
much exposure in this practice …….
• All professionals who are practicing …….
HONESTLY
• Not for those who are experts… as I shall
learn from them…
2
3. WHAT SHOULD BE OUR TAKE AWAYS?
• Legal Framework of Transfer Pricing
Provision under the Act……..
• Understand the procedure, process and
implementation ………
• How to Determine Arm’s Length Price (ALP)
Under the Act …….
• Understanding of application of various TP
method to calculate ALP …….
• How to proceed to prepare TP
documentation and TP Study ………
• How to issue certificate in Form No.
3CEB……..
3
5. Chapter-X: Special Provision relating
to avoidance of Tax (TP Provisions)
• The Explanatory Memorandum to the Finance Bill, 2001
explains the need for and the rationale for introduction of
transfer pricing provisions:
• ♦ The profits derived by such enterprises carrying to business
in India can be controlled by the multinational group, by
manipulating the prices charged and paid in such intra-group
transactions, thereby, leading to erosion of tax revenues.
• ♦ With a view to provide a statutory framework which can lead
to computation of reasonable, fair and equitable profits and
tax in India, in the case of such multinational enterprises, new
provisions were to be introduced in the Income-tax Act.
• Constitutional validity of chapter X provisions
• In Coca Cola India Inc. v. Asstt. CIT [2009] 177 Taxman 103
(Punj. & Har.), it was held that Chapter X of the Act was not
violative of Article 14 of the Constitution. Further, there was no
lack of the legislative competence for enacting the provisions
of sections 92 to 92F [as amended by the Finance Act, 2001,
with effect from 1-4-2002] contained in Chapter X of the Act.
5
6. Chapter-X: Special Provision relating
to avoidance of Tax (TP Provisions)
• 92: Computation of Income from
international transaction having regard
to arm’s length price.
• 92 A:Meaning of associated enterprise.
• 92 B:Meaning of International transaction.
• 92BA:Meaning of specified domestic
transaction
• 92 C: Computation of arm’s length price.
• 92CA:Reference to TPO
• 92CB:Power of board to make safe harbor
rules.
6
7. Chapter-X: Special Provision relating
to avoidance of Tax (TP Provisions)
• 92CC: Advance Pricing Agreement.
• 92CD: Effect of Advance pricing agreement.
• 92D: Maintenance, keeping of information and
documents by person entering into international
transaction or SDTs.
• 92E: Report from accountant to be furnished by person
entering into international transaction or SDTs.
• 92F: Definitions of certain terms relevant to
computation of arm’s length price etc.
• 93: Avoidance of income tax by transactions resulting
in transfer of income to non residents.
• 94: Avoidance of tax by certain transactions in
securities.
• 94A: Special measures in respect of transactions with
persons located in notified jurisdictional area.
7
8. Chapter-X: Special Provision relating
to avoidance of Tax (TP Provisions)
• Rule 10A: Meaning of Expressions used in
computation of ALP.
• Rule 10AB: Other Method of determination of
ALP.
• Rule 10B: Determination of ALP under Section
92C.
• Rule 10C: Most Appropriate Method.
• Rule 10D: Information and documents to be
kept and maintained u/s 92D.
• Rule 10E: Report from an accountant u/s 92E.
• Rule 10F: Meaning of Expressions used in
matters in respect of APA.
• Rule 10G: Person Eligible to apply for APA.
8
9. Chapter-X: Special Provision relating
to avoidance of Tax (TP Provisions)
• Rule 10H: Pre-filling consultation.
• Rule 10I: Application for APA.
• Rule 10J: Withdrawal of Application for APL.
• Rule 10K: Preliminary processing of application.
• Rule 10L: Procedure to be followed for APA.
• Rule 10M: Terms of the Agreement.
• Rule 10MA: Roll Back of the agreement.
• Rule 10N: Amendments to Application.
• Rule 10O: Furnishing of annual compliance.
• Rule 10P: Compliance Audit of Agreement.
• Rule 10Q: Revision of Agreement.
9
10. Chapter-X: Special Provision relating
to avoidance of Tax (TP Provisions)
• Rule 10R: Cancellation of an agreement.
• Rule 10RA: Procedure for giving effect to
rollback provision of an agreement.
• Rule 10S: Renewing an agreement.
• Rule 10T: Miscellaneous.
• Rule 10TA: Definitions Safe Harbour Rules.
• Rule 10TB: Eligible Assesses.
• Rule 10TC: Eligible International
Transaction.
• Rule 10TD: safe Harbour ….
• Rule 10TE: Procedure…. Till Rule 10THD
10
13. Understand the procedure, process and
implementation ………
Conditions:
• There should be an international transaction
between two or more associated enterprises.
• At least one of the AE should be non resident.
• The international transactions should give rise
to any one or more of the following:
• Income;
• Expenditure;
• Interest;
• Sharing of cost of expenses;
• Transaction should be recorded at ALP;
13
14. Understand the procedure, process and
implementation ………
Assessment Procedure & DRP Mechanism:
• Reference to TPO; mandatory if IT exceeds 15 crores,
otherwise discretionary;
• Notice by TPO to the assessee;
• Scrutiny and passing of TP order within 34 months from
EOAY;
• AO to pass the draft order based on TPO order within
60days from TPO order;
• Assessee to accept or file objections to DRP or Appeal
before the CIT (A) within 30days ;
• DRP to issue direction to AO within 9 months from the
EOM in which draft order is received by Assessee
• AO to issue Final order within 1 month of receiving
direction of DRP;
• Assessee to file appeal to ITAT or accept;
14
15. Understand the procedure, process and
implementation ………
Documents/Information/Record to be
Maitained Rule 10D (1) :
Description of the ownership
structure;
Profile of the multinational Group;
Broad description of the business;
Nature & Terms including pricing;
Description of the Function
performed;
Record of Economic and market
analyses;
Record of uncontrolled transactions;
15
16. Understand the procedure, process and
implementation ………
Documents/Information/Record to be
Maintained Rule 10D (1)……. :
Record of the analysis performed;
Description of the method considered;
Record of Actual working carried out;
Assumptions, policies and price
negotiations;
Details of adjustments if any;
Any other information, data or
document including official publication,
report of market research studies,
Price publications, Published accounts,
Agreements and contracts, Letters and
correspondence;
16
17. Computation of Arm Length Price ………
• Obligation to compute income at arm’s length
price of all international transactions
• ALP--“Price between unrelated parties in
uncontrolled conditions” [Section 92F(ii)]
• ALP should be a mirror image of a price
charged for a similar transaction between two
unrelated entities transacting in uncontrolled
conditions;
• Price of a transaction in open market is
reflective of functions performed, assets
employed and risks Assumed i.e.(FAR Analysis);
• FAR Analysis helps to identify the adjustments
required and judging comparability under Rule
10B(2) and Rule 10B(3).
17
18. Computation of Arm Length Price ………
FAR Analysis- Approach
• Understanding the business model of
the taxpayer;
• Study the characteristics of the
transactions;
• Identify suitable comparables;
• Benchmarking with uncontrolled
comparables;
• Determination of arm’s length price.
18
19. Computation of Arm Length Price ………
Computation of Arm’s Length Price (ALP)
Section 92C based on any one of following
Methods……. :
Comparable Uncontrolled Price (CUP);
Resale Price Method (RPM);
Cost Plus Method (CPM);
Profit Split Method (PSM);
Transaction Net Margin Method (TNMM)
Any other method based on information,
data or document including official
publication, report of market research
studies, Price publications, Published
accounts, Agreements and contracts,
Letters and correspondence w.e.f.
23.5.2012 Rule 10AB;
19
20. Computation of Arm Length Price ………
Comparable uncontrolled Price Method (CUP);
Internal CUP or External CUP;
• Appropriate:
-When tax payer or other group company buys/sells similar
goods in similar quintiles under similar terms from/to an
independent enterprise in similar market (Internal CUP)
- When the independent enterprise buys/sells similar goods in
similar quintiles under similar terms from/to an independent
enterprise in similar market (External CUP)
• Limitation:
-Difficulty in availability of reliable comparable data, especially
in the case of external comparables.
-Absence of objective method to monetize difference in
contractual obligations;
-Not suited to niche businesses where product or service range
is unique.
20
21. Computation of Arm Length Price ………
Resale Price Method (RSP)
• Appropriate:
-when the seller add little value to the goods and
not alter the physical properties of goods before
resale; Pakacking, repacking, labeling or minor
assembly does not ordinarily constitute physical
alteration.
-when tangible goods like cars or FMCG products,
intangible like packaged services software etc.
• Limitation:
-When the reseller adds substantial value to the
end product or services;
-Non availability of reliable comparable data in case
of external comparables.
21
22. Computation of Arm Length Price ………
Cost Plus Method(CPM)
• Appropriate:
-Provision of standardized services (e.g.
medical transcription or call centre business)
-Joint Facility management
-Long term buying and selling contracts
-Transfer of semi finished goods for
manufacturing.
• Limitation:
-Not suited for niche businesses where the
product or service range is unique.
-Non availability of reliable comparable data in
case of external comparables.
22
23. Computation of Arm Length Price ………
Profit Split Method(PSM)
• Appropriate:
–Integrated consultancy contracts executed by group
companies located in multiple jurisdiction;
-Contracts involving creation of value added intangibles
by multiple group.
-When the transactions are so integrated and mutually
dependent
–When the revenue streams and efforts are not uniform
across various arrangements/contracts.
• Limitation:
-Extreme levels of subjectivity involved in determination
of relative contributions by multiple entities.
-Determination and apportionment of cost could be
practical challenge especially in case of common costs.
23
24. Computation of Arm Length Price ………
Transaction net margin Method (TNMM)
• Appropriate:
–Suitable for sectors with standardized goods and services
where the product and service range are extremely
comparable;
- Best use of commercial database like Prowess and Capitaline,
similar to CPM.
-Where internal and external comparables are not available for
applying CUP, the method is most appropriate.
–When the revenue streams and efforts are not uniform across
various arrangements/contracts.
• Limitation:
-Not suitable where goods and services are unique and the
methods of delivery are not comparable.
-Determination and apportionment of cost could be practical
challenge especially in case of common costs.
24
25. Computation of Arm Length Price ………
Any other Method
Notification No. 8/2012dated 23.05.2012Rule10AB w.e.f AY 2012-
13
• MAM is considered Based on considering the following:
• the nature and class of international transaction;
• the class/classes of associated enterprises entering into the
transaction and the functions performed by them taking into
account asset employed/to be employed and risks involved;
• the availability, coverage and reliability of data necessary for
the application of method;
• the degree of comparability between international transaction
and the uncontrolled transaction and between the enterprises
involved;
• the extent to which accurate adjustments for differences can
be made to make uncontrolled transaction comparable; and
• the nature, extent and reliability of the assumptions involved in
the method.
25
27. Accountant Responsibility ………
• Can he be only Statutory Auditor?
• Is NOC from previous auditor required?
• Should have letter of appointment…
• Tax Auditor can but Internal auditor should not and
also the firm of accountants maintaining books of
accounts..
• Should get proper MRL with regard to each clause;
• Primary responsibility of assessee to furnish
information in audit report under section 92E
• Responsible to report on the reasonableness of
documentation/information required u/s 92D.
• Responsible to report on the method and
procedure to calculate ALP u/s 92C .
27
28. Accountant Responsibility ………
• Income shall be deemed to have escaped assessment
where the assessee has failed to furnish a report in
respect of an international transaction which he was so
required under section 92E. w.e.f. 1-7-2012
• Examination of only those accounts and records of the
assessee which relate to ITs/SDTs entered into by him
during the previous year under audit.
• Ascertaining and reporting whether the assessee has
maintained proper information and documentations
prescribed in respect of international transactions SDTs
entered into by him.
• Examination and certification of particulars given in the
Annexure to Form No. 3CEB are true and correct.
• Responsible to report on the method and procedure to
calculate ALP u/s 92C as maintained by the assessee .
28
29. Accountant Responsibility ………
• While conducting the audit, the auditor will have to use his
professional skill and expertise and apply such tests as
required in the circumstances.
• The auditor should clearly state in his report that figures
from general purpose audited financial statements have
been used and relied upon;
• Based on the strength of internal controls of the assessee,
he may apply appropriate sampling techniques.
• The concept of 'materiality' is relevant in audit under
section 92E.
• The auditor should obtain a management representation
from the assessee containing the following particulars
regarding each associated enterprise with whom the
assessee has entered into international transactions:
• Name, Address, legal status, country of residence &
linkages among various associated enterprises
29
30. Accountant Responsibility ………
• Income shall be deemed to have escaped assessment
where the assessee has failed to furnish a report in
respect of an international transaction which he was so
required under section 92E. w.e.f. 1-7-2012
• Examination of only those accounts and records of the
assessee which relate to ITs/SDTs entered into by him
during the previous year under audit.
• Ascertaining and reporting whether the assessee has
maintained proper information and documentations
prescribed in respect of international transactions SDTs
entered into by him.
• Examination and certification of particulars given in the
Annexure to Form No. 3CEB are true and correct.
• Responsible to report on the method and procedure to
calculate ALP u/s 92C as maintained by the assessee .
30
31. Open house
31
Questions…
CA Sanjay Agrawal
Dinesh Mohan & Co.
Chartered Accountants
Tel (Direct): +91 124 4604 126
Cell: +91 9810116321
email: sanjay@charteredaccountantsindia.in