determined by
any one of the five methods, which is found to be the most
appropriate method, and goes on to lay down the manner ... methods recognized by the rule are (i) comparable
uncontrolled price method (CUP), (ii) re-sale price method, {in)
cost plus method, (iv) profit split method
determined by
any one of the five methods, which is found to be the most
appropriate method, and goes on to lay down the manner ... methods recognized by the rule are (i) comparable
uncontrolled price method (CUP), (ii) re-sale price method, {in)
cost plus method, (iv) profit split method
assessee's and not its overseas
AE's profitability. He adopted the very rejecting for assessee's transfer pricing
report ... Comparable
Uncontrolled Price method 'CUP' claimed in first, Resale Price Method (RPM),
Cost Plus Method (CPM) and Profits Split Method (PSM) in second
transaction
shall be determined by any of the following methods, being the
most appropriate method, having regard to the nature of
transaction or class ... prescribe, namely:-
(a) Comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
transferred or services is determined using the
provided and the global profit split method,
quantum and the value thereby indicating
of each such transaction maintenance ... economic and market one of the participants of
analyses, forecasts, the profit split method
budgets or any other applied to the group
financial estimates globally
concept of
economic nexus is an important feature of attributable profits (profits
attributable to the PE)."
The application of transfer pricing principles is also ... accepted.
Further, in the facts and circumstances of the case Profit Split method is
9
ITA 3605/Del/2013
AY: 2007-08
M/s Convergys
international transaction shall be determined by any of
the following methods, being most appropriate method, having regard to the
nature of transactions or class ... Board;
(a) Comparable Uncontrolled Price method(CUP); (b) Resale Price method; (d) Cost
plus method; (d) Profit Split method; (e) Transaction Net Margin Method(TNMM
addition to Comparable Uncontrolled Pric e (CUP)
method, Resale Price Method (RPM), Cost Plus Method (CPM), Profit Split
Method (PSM) and Transactional Net Margin Method ... Method (RPM)
and Cost Plus Method (CPM), has an inherent edge over indirect methods
such as Transactional Net Margin Method (TNMM) and Profit Split Method
adopted TNMM. In respect of the
second transaction the Assessee adopted CUP method. Those
transactions were accepted as at Arm's Length ... lost sight of. The Transactional
profit methods (i.e. Transactional Net Margin Method and Profit Split
Method) are treated as methods of last resort which
party contractees;
(vi) by applying cost plus method, and by rejecting profit
split method, for determining the amount of profit; and
(vii) in separately adding ... narrated above, it is
virtually impossible to determine the profits of the PE by any method
other than transfer pricing ". The Assessing Officer furth
