TNMM requires operating profit and operating cost to be computed...

TNMM requires operating profit and operating cost to be computed consistently for the tested party and comparable companies. A provision for doubtful debts linked to sales and trade receivables, and routine business levies such as rates and taxes, may be operating expenses because of their business nexus; income-tax on profits remains excluded. Rule 10B requires FAR-based functional comparability, reliable segmental data and reasonably accurate adjustments for material differences, including scale. A search matrix is evidentiary discipline rather than a statutory bar: an out-of-matrix comparable requires substantiated functional fit and filter compliance, while rejection solely for matrix absence is inappropriate. Contemporaneous documentation must support searches, exclusions, classifications and margin adjustments.