TaxTMI 
TaxTMI 
2020 (8) TMI 929
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....pport services with respect to the aforementioned books and journals sold by the Associated Enterprises [AE] in the territory of India, Pakistan, Bangla Desh and Sri Lanka. 4. The appellant's business of publishing books and journals involved electronic as well as physical format, which are sold in India as well as overseas. International transactions pertaining to this business are subject matter of the appeal. The appellant also derives revenue from business of reprinting of books and by way of commission on sales made by the AEs in India and distribution of books of third parties in India. 5. In its TP study report, the assessee has adopted the transaction by transaction approach which was disregarded by the TPO by aggregating all transactions and applying TNMM method and made a total adjustment of Rs. 12.41 crores. 6. When the objections were raised before the DRP, the DRP upheld the application of TNMM on the basis that the appellant had adopted TNMM in the previous years. Accordingly, margins of the comparable companies were recomputed. 7. Pursuant to the directions of the DRP, the TPO recomputed the TP adjustment at Rs. 9.58 crores. 8. It would be pertinent to....
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....ing to certain transactions as applied by the assessee in its TP study. 15. We have given thoughtful consideration to the factual matrix and the submissions of the rival representatives. We have also carefully perused the APA. As per clause 3 under the head 'Covered Transaction', it is mentioned that the agreement is applicable to the covered transactions given in Appendix II and Most Appropriate Transfer Pricing Methods for covered international transaction of the applicant are given in Appendix IV. Under the head "The Term of Agreement", it is mentioned that the agreement shall apply to previous assessment years 2016-17 to 2020-2021 and shall also apply to previous years 2012-13 to 2015-16. 16. Apparently, the year under consideration is not covered by the APA. List of covered transactions are as under: 17. In light of the above, we find that the Tribunal, in a series of decisions, have consistently held that even if the year under dispute is not covered by APA, if the FAR is same, APA should be adopted for international transactions for the year under dispute. This view has been taken in the following cases: 1. Honeywell Automation India Ltd 101 Taxmann.com 6 [....
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....rvice Centre LLC) 26-2544201 Commission/ Service charges paid to AEs for sale of books and Springer Nature Customer Service Centre GmbH DE209719094 (Formerly known as Springer Customer Service Centre GmbH) Springer-Verlag GmbH Springer Nature Customer Service Centre LLC (Formerly known as Springer Customer Service Centre LLC) DE170864101 26-2544201 Document 2 Covered Unilateral Advance Pricing Agreement between CBDT and Springer Nature India Private Limited International Associated Enterprises TIN Transaction Transaction journals in printed form Springer Nature Customer DE209719094 Service Centre GmbH (Formerly known as Springer Customer Service Centre GmbH) Springer-Verlag GmbH DE170864101 Covered Provision of Springer-Verlag GmbH DE170864101 Transaction 5 marketing support services Covered Transaction 6 Covered Transaction 6A Production and Editorial support service charges paid, received, and rebilling charge - ISM Recharge and ISM Income Production and Editorial charges Springer Nature B.V. (Formerly N....
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....ress Media, LLC BioMed Central Limited Springer Austria GmbH Springer-Verlag Italia, S.r.l Springer Nature Customer Service Centre GmbH (Formerly known as Springer Customer Service Centre GmbH) Springer Medizin Verlag GmbH Springer Nature Limited (Formerly known as Macmillan Publishers Limited) Springer Japan KK GB823826326 77-0178859 GB823826326 Not Available IT05117320159 DE209719094 DE230026696 GB199440621 0100-01-003854 Springer Nature B.V. (Formerly NL004361337B01 known as Springer Science+ India 15/ Document 4 Unilateral Advance Pricing Agreement between CBDT and Springer Nature India Private Limited International Transaction. Associated Enterprises TIN Govered Transaction Business Media B.V) Springer-Verlag France SAS FR77338911555 Springer-Verlag GmbH DE170864101 Springer-Verlag London Limited G8823826326 Covered Transaction 9 Springer Nature America, Inc. Springer Nature Singapore Pte Ltd. (Formerly known as Springer Science + Business Media Singapore Pte Limited) Receipt of royalty Springer Healthcare LLC Springer Nature C....
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....n expenses 17 Board ཚེ8༠༠༩༠Direct Springer-Verlag GmbH Springer Nature Deutschland GmbH (Formerly known as Springer Science Business Media Deutschland Gmbl I) Adis International Ltd. Springer Japan KK Springer Asia Ltd. Springer Nature Limited (Formerly known as Macmillan Publishers Limited) Springer Nature Finance B.V. Springer Science + Business Media, LLC Springer-Verlag GmbH Springer Science+Business Media, LLC 113220 0100-01-003854 Not Available* GB199440621 NL811368877801 04-2509538 .DE170864101 04-2509538 Springer Nature B.V. (Formerly NL004361337B01 known as Springer Science+Business Media BV) Birkauhser Verlag, Basel Springer Asia Ltd. Springer Japan KK Springer-Verlag London Ltd Springer Nature Deutschland GmbH (Formerly known as Springer Science+Business Media Deutschland GmbH) Not Available* Not Available* 0100-01-003854 GB823826326 DE815440385 Springer Nature Singapore Pte 201109905Z Ltd. (Formerly known as Springer Science+Business Media Singapore Pte Ltd) 17 Nature India Private ....
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.... Finance, Sales & Corporate Recharge Provision of content development services Import of books and journals for resale Interest on overdue receivables Allocation towards internal workflow Payment of software license fees Reimbursement of costs Recovery of expenses Printing, Designing, Prepress & Marketing costs - Deemed international transactions P329 Pg 31 Ранора Pg 40 WE P946 Document 8 Unilateral Advance Pricing Agreement between CBDT and Springer Nature India Private Limited APPENDIX IV MOST APPROPRIATE TRANSFER PRICING METHOD (SEE CLAUSE 5) Covered Transaction Covered Transaction No.1 Covered Transaction No.2 Covered Transaction No.3. Covered International Transaction Sale of Indian books and journals in electronic form by the AES Most Appropriate Method Other Method Sale of Indian books and journals Other Method in printed form by the AES Commission/ Service charges Other Method paid to AEs for sale of books and journals in electronic form Commission/ Service charges Other Method Transaction No. 4 paid to AEs for sale of books and....
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.... Net Revenue allocated from the sales made by the AES of the Applicant, on the basis of number of books and articles forming part of a package (which includes SNIPL's books/ titles). Refer Exhibit V-A for Revenue Allocation Mellodology For this purpose, Net Revenue Sales less Discount allowed to customers less Sales Return Net Revenue from the sales made by AES of the Applicant, on actual basis (excluding shipping, postage & courier charges). For this purpose, Net Revenue = Sales less Discount allowed to customers less Sales Return Commission to be paid at a rate not exceeding 11 percent on the Net Revenue allocated as per Covered Transaction No. 1 above Commission to be paid at a rate not exceeding 11 percent on the Net Revenue (excluding shipping, postage and courier charges) as per Covered Transaction No. 2 above For this purpose, Net Revenue Sales less Discount allowed to customers less Sales Return Amount to be earned at a rate not less than 11 percent of Net Revenue of the AES in the designated territory as defined in Clause 1 (b) For this purpose, Document 11 Unilateral Advance Pricing Agr....