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—     It almost covers every type of transaction a company


can enter intoë read along with sec 92F(v) of IT Act, 1961

å p rchase, sale or lease of tangible or intangible property

å provision of services

å Lending or borrowing of money

å Any other transaction having a bearing on the profits, income,

losses or asset

å M t al cost sharing agreement


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pcoming ¶Direct Tax Code (´DTCµ)· has omitted the s b-cla se 1 of


section 92A.
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1. Comparable ncontrolled price Method %A ,


´No order can be passed for
2. Resale price Method - #,
adj stments by Tp witho t following
any of the methods prescribed nder
3. Cost pl s method % #, the sec 92C.µ
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4. profit Split Method  #, %

5. Transactional Net Margin Method $## 

6. Any other prescribed by CBDT (However, no method has yet been


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comparable s mmarily witho t

  

assigning any cogent reason.µ
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done after taking into acco nt all
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relevant facts and circ mstances
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of the case. The Tp can carry
´Trib nal pheld the validity of selection of
o t a fresh economic search only
foreign comparable companies provided,
if the comparables drawn by the
data pertaining to those companies m st
taxpayer are ins fficient or have
be available in p blic domain.µ ²
any other deficiency.µ -
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inc rred d ring the start- p phase calls for economic adj stments.µ A -

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— Tp·s role wo ld be limited to determination of arm·s length price in


relation to international transactions, which wo ld be binding on the
assessing officer.
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— Doc mentation req irement content in s b
b--r le (1) of R le 10D
10D can be
s mmarized as below:
below:

&V$ 3ÿ £3&'$,ÚVÚ3, $5 $'$,Ú


$£"#

Cla ses (a), (b), (c) * 0


 
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and (d)
Description of ownership str ct re and
interest, profile of m ltinational gro p of
which the enterprises are the part, broad
description of b siness and broad
description of international transactions.
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&V$ 3ÿ £3&'$,ÚVÚ3, $5 $'$,Ú
$ £"#
Cla se (c)  ! 
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Information/doc ments regarding ind stry in which the


enterprise operates.
operates.
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Description of f nctions performed, risk ass med and


assets employed by the enterprise and the associated
enterprise..
enterprise
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importance· of cond cting FAR and Filters m st be based on
cogent reasoning not on nso nd ass mptions.
mptions.µ]
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$ £"#

Cla ses ) ) ) 1  ! :


) )1 )- ) Application of the most appropriate method to
)' establish arm·s length price ² selection of the
most appropriate method, workings of arm·s
length price, analysis performed for
comparability and adj stments,etc.
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- Report to be filed by
Tp and filed before 31st A g st.
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S.271AA
271AA Fail re to keep and maintain 2% of the val e of each
any s ch information or international transaction entered
doc ments as req ired in into
into..
the proposed s b-
b-section(1
section(1)  ù
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or s b
b--section (2) of section  V - ´No penalty proceeding when
92D
92 D comp tation of Tp is done in
accordance with law, in good faith and
with d e diligence.
diligence.µ]

271BA Fail re to f rnish a report -


S. 271BA -"" 1,00,
00,000
from an acco ntant as
req ired in section 92E
92E
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S.271G
271G 7 
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92D(
D(3
3) to the taxpayer m st be


 
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"" information.µ]
f rnishing information.


"" +D. penalty for concealment

 100%
100 % - 300%
300% of the tax
.  evaded..
evaded
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