https://www.taxtmi.com/article/detailed?id=1148 Income and expenses from cross-border arrangements between related enterprises must be computed with reference to arm's length price. International transactions include transfers of tangible or intangible property, services, financing and cost allocation arrangements influenced by associated enterprises. Associated enterprises are identified by relationships of control, shareholding, loans, guarantees, board composition, dependence on proprietary intangibles or supply and pricing influence. The arm's length price is determined using prescribed methods (CUP, Cost Plus, Resale Price, Profit Split, TNMM or other notified methods); where several prices arise, the arithmetic mean applies. Assessing Officers may determine ALP on specified grounds and may refer matters to a Transfer Pricing Officer who issues a determinative order. Assessees must maintain prescribed documentation and furnish auditor reports, with penalties for non compliance subject to reasonable cause defenses. en-us Tue, 22 Feb 2011 22:05:52 +0530 Tue, 22 Feb 2011 22:05:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1148 Income and expenses from cross-border arrangements between related enterprises must be computed with reference to arm's length price. International transactions include transfers of tangible or intangible property, services, financing and cost allocation arrangements influenced by associated enterprises. Associated enterprises are identified by relationships of control, shareholding, loans, guarantees, board composition, dependence on proprietary intangibles or supply and pricing influence. The arm's length price is determined using prescribed methods (CUP, Cost Plus, Resale Price, Profit Split, TNMM or other notified methods); where several prices arise, the arithmetic mean applies. Assessing Officers may determine ALP on specified grounds and may refer matters to a Transfer Pricing Officer who issues a determinative order. Assessees must maintain prescribed documentation and furnish auditor reports, with penalties for non compliance subject to reasonable cause defenses. Articles Income Tax Tue, 22 Feb 2011 22:05:52 +0530 https://www.taxtmi.com/article/detailed?id=1148