Thursday, 7 June 2012

India introduces a new transfer pricing method

The Indian Tax Administration has issued a notification introducing a new transfer pricing method (TPM) for determining the arm’s length price (ALP). The notification introduces a new Rule 10AB to the Income-tax Rules, 1962 (the Rules) describing the new TPM. As per Rule 10AB, any method that takes into account the price that has been charged or paid, or would have been charged or paid, for the same or similar uncontrolled transaction, with or between non-associated enterprises, under similar circumstances considering all the facts, shall be regarded as one of the recognized methods for determining the ALP.
Source & more info: Ernst & Young