https://www.taxtmi.com/article/detailed?id=12111 Resale Price Method is appropriate where a distributor solely trades and does not add value to purchased goods; in such cases the distributor's gross profit margin on resales of finished goods purchased from an associated enterprise is the determinative benchmark. A pure distributor relationship is characterised by trading-only activity, absence of value addition, a manufacturer-distributor contractual relationship, and performance of sales-related functions while bearing commercial risks. Differences in employee or marketing expenses, including start-up expatriate support, do not change this characterisation. en-us Sat, 09 Dec 2023 09:33:09 +0530 Sat, 09 Dec 2023 09:33:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=12111 Resale Price Method is appropriate where a distributor solely trades and does not add value to purchased goods; in such cases the distributor's gross profit margin on resales of finished goods purchased from an associated enterprise is the determinative benchmark. A pure distributor relationship is characterised by trading-only activity, absence of value addition, a manufacturer-distributor contractual relationship, and performance of sales-related functions while bearing commercial risks. Differences in employee or marketing expenses, including start-up expatriate support, do not change this characterisation. Articles Income Tax Sat, 09 Dec 2023 09:33:09 +0530 https://www.taxtmi.com/article/detailed?id=12111