Transaction is approved by the RBI and Government is not sufficient and the assessee has to benchmark the royalty payment separately

Transaction is approved by the RBI and Government is not sufficient and the assessee has to benchmark the royalty payment separately https://www.taxtmi.com/article/detailed?id=7029 Administrative approvals from RBI/FIPB/DIPP do not determine Arm's Length Price for royalty payments; the assessee must independently benchmark the international royalty transaction using comparable uncontrolled transactions and prescribed transfer pricing methods. Reliance on prior approvals or automatic route permissions is insufficient, and the case was remitted to the assessing officer to require proper benchmarking and decide the issue after due opportunity. en-us Wed, 12 Oct 2016 12:22:19 +0530 Wed, 12 Oct 2016 12:22:19 +0530 TaxTMI RSS Generator Transaction is approved by the RBI and Government is not sufficient and the assessee has to benchmark the royalty payment separately https://www.taxtmi.com/article/detailed?id=7029 Administrative approvals from RBI/FIPB/DIPP do not determine Arm's Length Price for royalty payments; the assessee must independently benchmark the international royalty transaction using comparable uncontrolled transactions and prescribed transfer pricing methods. Reliance on prior approvals or automatic route permissions is insufficient, and the case was remitted to the assessing officer to require proper benchmarking and decide the issue after due opportunity. Articles Income Tax Wed, 12 Oct 2016 12:22:19 +0530 https://www.taxtmi.com/article/detailed?id=7029