Navigating Arm's Length Pricing: Six Methods to Ensure Fair Taxation in International and Domestic Business Transactions Under Section 92C
Section 92C of the Income Tax Act, 1961 provides guidelines for determining the arm's length price in international or specified domestic transactions. It outlines six methods for calculating the appropriate price, including comparable uncontrolled price, resale price, cost plus, profit split, and transactional net margin methods. The section empowers the Assessing Officer to evaluate and adjust pricing if transactions do not comply with prescribed guidelines, ensuring fair taxation of inter-entity transactions.
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