CBDT notifies tolerance limit between ALP u/s 92C & actual price for AY 2020-2021 

CBDT notifies tolerance/variation limit between arm’s length price u/s 92C and the actual price for international/specified domestic transaction for AY 2020-2021

MINISTRY OF FINANCE
(Department of Revenue)

Notification No. 83/2020

New Delhi, the 19th October, 2020

[INCOME-TAX]

S.O. 3660(E).—In exercise of the powers conferred by the third proviso to sub-section (2) of section 92C of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the “said Act‟), read with proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962, the Central Government hereby notifies that where the variation between the arm’s length price determined under section 92C of the said Act and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one per cent. of the latter in respect of whole sale trading and three per cent. of the latter in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price for assessment year 2020-2021.

Explanation.-For the purposes of this notification, “wholesale trading” means an international transaction or specified domestic transaction of trading in goods, which fulfils the following conditions, namely:-

(i) purchase cost of finished goods is eighty per cent. or more of the total cost pertaining to such trading activities; and

(ii) average monthly closing inventory of such goods is ten per cent. or less of sales pertaining to such trading activities.

[F. No. 500/1/2014-APA-II]

RUCHIKA SHARMA, Under Secy

Download Notification Click Here >>

• No arrest under GST- Major decision of 57th Meeting of GST Council held on 8th October 2026
• Later SC ruling cannot render an act done in compliance of a court order a statutory default
• Interest payment on mobilisation advance to NHAI not liable to TDS u/s 194A
• Typographical error in turnover accepted during assessment not a mistake apparent from record
• Plea that assessee was not aware of order cannot be brushed aside in absence of proof of service