Deemed arm’s length price in case of variation between price determined u/s 92C for international transaction or specified domestic transaction for AY 2021-22
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi, the 29th October, 2021
(INCOME TAX)
S.O. 4586(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)(hereafter 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 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 wholesale 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 2021-2022.
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]
NEHA NAUTIYAL, Under Secy
Liability under the Motor Vehicles Act can’t be decided on the grounds of sympathy alone but must be established by…
ICAI notifies Dates of CA Foundation, Intermediate and Final Exams May 2026 The Institute of Chartered Accountants of India has…
Interest under section 234A cannot be levied on self-assessment tax paid before the due date of filing of return of…
SEBI defers timeline for implementation of Phase III of Nomination SEBI had issued a circular on “Revise and Revamp Nomination…
RBI revises directions on opening & Maintenance of Cash Credit accounts, Current Accounts and Overdraft Accounts by all Banks Reserve…
Resolution Professional can’t claim income tax refund for a period prior to approval of the resolution plan In a recent…