TaxTMI 
TaxTMI 
Determination of arms length price under section 92C
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.... is adjusted to account for differences, if any, between ^3[the international transaction or the specified domestic transaction] and the comparable uncontrolled transactions or between the enterprises entering into such transactions, which could materially affect the price in the open market; (iii) the adjusted price arrived at under sub-clause (ii) is taken to be an arms length price in respect of the property transferred or services provided in ^3[the international transaction or the specified domestic transaction]; (b) resale price method, by which,- (i) the price at which property purchased or services obtained by the enterprise from an associated enterprise is resold or are provided to an unrelated enterprise....
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....ted according to the same accounting norms) arising from the transfer or provision of the same or similar property or services by the enterprise, or by an unrelated enterprise, in a comparable uncontrolled transaction, or a number of such transactions, is determined; (iii) the normal gross profit mark-up referred to in sub-clause (ii) is adjusted to take into account the functional and other differences, if any, between ^3[the international transaction or the specified domestic transaction] and the comparable uncontrolled transactions, or between the enterprises entering into such transactions, which could materially affect such profit mark-up in the open market; (iv) the costs referred to in sub-clause (i) are increased b....
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....e is taken into account to arrive at an arms length price in relation to ^3[the international transaction or the specified domestic transaction]: Provided that the combined net profit referred to in sub-clause (i) may, in the first instance, be partially allocated to each enterprise so as to provide it with a basic return appropriate for the ^5[type of international transaction or specified domestic transaction] in which it is engaged, with reference to market returns achieved for similar types of transactions by independent enterprises, and thereafter, the residual net profit remaining after such allocation may be split amongst the enterprises in proportion to their relative contribution in the manner....
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....realised by the enterprise and referred to in sub-clause (i) is established to be the same as the net profit margin referred to in sub-clause (iii); (v) the net profit margin thus established is then taken into account to arrive at an arms length price in relation to ^3[the international transaction or the specified domestic transaction]. ^1[(f) Any other method as provided in rule 10AB.] (2) For the purposes of sub-rule (1), the comparability of ^2[an international transaction or a specified domestic transaction] with an uncontrolled transaction shall be judged with reference to the following, namely:- (a) the specific characteristics of the prope....
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....p; (ii) reasonably accurate adjustments can be made to eliminate the material effects of such differences. (4) The data to be used in analysing the comparability of an uncontrolled transaction with ^2[an international transaction or a specified domestic transaction] shall be the data relating to the financial year ^6[(hereafter in this rule and in rule 10 CA referred to as the 'current year')] in which ^3[the international transaction or the specified domestic transaction] has been entered into : Provided that data relating to a period not being more than two years prior to ^7[the current year] may also be considered if such data reveals facts which could have an influence on t....