international transaction hall be determined by any of the
following methods, being the MAM, having regard to the nature
of transaction or class of transaction ... prescribe, viz.,
(a) Comparable Uncontrolled Price Method;
(b) Resale Price Method;
(c) Cost Plus Method;
(d) Profit Split Method;
(e) Transactional Net Margin Method
international
transaction hall be determined by any of the following methods, being
the MAM, having regard to the nature of transaction or class of
transaction ... prescribe,
viz.,
a) Comparable Uncontrolled Price Method;
b) Resale Price Method;
c) Cost Plus Method;
d) Profit Split Method;
e) Transactional Net Margin Method
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;
transactional net margin method;
(f) such
that though the profits are made or received at the ultimate point of sale of the final output but the profits are earned or derived ... profits at the last stage. He has contended that the assessee has adopted the well known commercial accounting principle of Profits split method by deriving
unique intangibles from the assessee and HO and therefore,
profit split method is also not applicable to the case. For the reasons mentioned ... TNMM is required to be considered as the most appropriate method, being the
method of last resort.
12. The assessee objected for TNMM
applied the TNMM method as most appropriate
method because it was difficult to apply the CUP method or the
cost plus method. Therefore, the TNMM ... 2017
Assessment Year: 2012-13
uncontrolled price method; resale price method; cost plus method; profit split
method; transactional net margin method or such other method
profit split method. However he accepted the transactional net
margin method as the most appropriate method as well as also accepted the
profit level indicator ... taxmann.com 384 (Kolkata- Trib.), wherein 50:50 profit
Page | 18
split method has been upheld. In the said case this issue had come
holding that
adjustments are required to be carried out in the operating profit
margin of the comparable companies and not the appellant.
2.9 That ... rendering IT enabled services are established to be at ALP
applying Profit Split Method as the most appropriate method and
no adjustment on account
property or provision of services by the enterprise;
(d) profit split method, which may be applicable mainly in international transactions [or specified
domestic transactions] involving ... profit is then split amongst the enterprises in proportion to their relative
contributions, as evaluated under sub-clause (ii);
(iv) the profit thus apportioned
length nature of its transaction, the assessee has applied the CUP method where it
has stated that the assessee has compared the royalty rates ... determining ALP? Traditional transaction methods, such as CUP, are
normally the most direct method for determining ALP. The transactional profit
split method, on the other
