Expenses for overseas film shooting treated as services availed outside India, so no reverse charge service tax liability; cenvat reversals and penalt...
Electricity consumptionbased clandestine production estimates under the repealed Central Excise Act found insufficient; demand quashed and appeals all...
The dominant issue was whether the arm's-length price of intra-group management service fees could be determined at Nil and whether the "Other Method" was the appropriate MAM. The assessee's cost-based benchmarking using internal mark-up policy (5% for support and 10% for managerial/technical services) was held consistent with OECD principles for low value-adding services and supported by contemporaneous documentation and cost allocation workings; consequently, Nil ALP could not be inferred merely by alleging no benefit or services. The corroborative TNMM, with the assessee's net cost-plus margin within the interquartile range of comparables, further validated arm's-length conditions. The Nil ALP adjustment was deleted, with a direction to verify the benchmarking in the TPSR applying "Other Method" as primary. - ITAT
The dominant issue was whether the arm's-length price of intra-group management service fees could be determined at Nil and whether the "Other Method" was the appropriate MAM. The assessee's cost-based benchmarking using internal mark-up policy (5% for support and 10% for managerial/technical services) was held consistent with OECD principles for low value-adding services and supported by contemporaneous documentation and cost allocation workings; consequently, Nil ALP could not be inferred merely by alleging no benefit or services. The corroborative TNMM, with the assessee's net cost-plus margin within the interquartile range of comparables, further validated arm's-length conditions. The Nil ALP adjustment was deleted, with a direction to verify the benchmarking in the TPSR applying "Other Method" as primary. - ITAT
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