Computation of arm's length price - tolerance limit of 1% in case of wholesale trading and 3% in all other cases notified - U/s 92C(2) of IT Act 1961. - 116/2024 - Income Tax Act, 1961
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Arm's length price tolerance set to deem transaction price as arm's length for specified trading categories this assessment year. Notification under the third proviso to section 92C(2) read with rule 10CA(7) proviso prescribes tolerance limits such that where the variation between the arm's length price and the actual price of an international or specified domestic transaction does not exceed the notified tolerance, the actual transaction price shall be deemed the arm's length price for the assessment year 2024-2025; a distinct definition of 'wholesale trading' based on purchase cost and inventory-to-sales thresholds determines eligibility for the narrower tolerance.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Arm's length price tolerance set to deem transaction price as arm's length for specified trading categories this assessment year.
Notification under the third proviso to section 92C(2) read with rule 10CA(7) proviso prescribes tolerance limits such that where the variation between the arm's length price and the actual price of an international or specified domestic transaction does not exceed the notified tolerance, the actual transaction price shall be deemed the arm's length price for the assessment year 2024-2025; a distinct definition of "wholesale trading" based on purchase cost and inventory-to-sales thresholds determines eligibility for the narrower tolerance.
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