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Transfer Pricing - Computation of ALP - Notified Tolerable Limit for Determination of ALP

Thursday, April 25, 2013 Posted by Unknown , , No comments
Section 92C of the Income-tax Act, 1961 - Transfer Pricing - Computation of Arm’s Length Price - Notified Tolerable Limit for Determination of ALP

Notification No. 30/2013, [F.NO.500/185/2011-FTD-I], Dated 15-04-2013

In exercise of the powers conferred by the second proviso to sub-section (2) of section 92C of the Income Tax Act, 1961 (43 of 1961), 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 for wholesale traders 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 2013-14.

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