Section 92CE - Secondary adjustment in certain cases.

Secondary adjustment where transfer-pricing excess funds remain triggers deemed advance treatment, interest or optional additional tax.

Where a primary adjustment to transfer price increases taxable income or reduces a loss and results in excess funds with an associated enterprise not repatriated within prescribed time, that excess is deemed to be an advance by the assessee to the associated enterprise and interest on such deemed advance must be computed as prescribed. The assessee may alternatively elect to pay an additional income-tax at a specified rate on the unrepatriated excess; that payment is final, precludes further credits, disallows deductions for the amount taxed, and obviates the requirement to make the secondary adjustment and compute interest from the date of payment.