2017
3.2 The ld TPO rejected internal CUP method and adopted Profit
Split Method (PSM) as the MAM for determination ... comparable
uncontrolled price method (CUP) as most appropriate method
depending upon facts and circumstances of the case.
5. Application of Profit Split Method requires information
that both the lower authorities have
committed grave mistake by upholding profit split method and
submitted as under :
a) Hiring and Operation of Vessels/leasing ... profit split. Under the above-
mentioned facts and circumstances of the case, adoption of profit split
method by the TPO is found to be justified
sale Price, Cost Plus
method, Profit Split Method, Transactional Net
Marginal Method and such other method
prescribed by the Board. Though Rule 10B has
been ... prescribe, namely :--
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
sale Price, Cost Plus method, Profit Split Method, Transactional
Net Marginal Method and such other method prescribed by the Board.
Though Rule 10B has been ... prescribe, namely
:--
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method
similar to
what it had with M/s.Northstar and Apotex. Profit splitting with M/s.
Par Pharmaceuticals was in the ratio ... Income Tax Rules,
1962.
''d) profit split method, which may be applicable mainly in
international transactions involving transfer of unique
intangibles
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
property or provision of services by the enterprise ;
(d) profit split method, which may be applicable mainly in international
transactions involving transfer of unique intangibles ... profit is then split amongst the enterprises in
proportion to their relative contributions, as evaluated under sub-clause
(ii) ;
(iv) the profit thus apportioned
explained that Section 92C has provided
different methods to compute Arm's Length Price. Those
methods are provided under six categories, running from ... company. It is
also equally not possible to apply Profit Split Method (PSM). The
Transactional Net Margin Method (TNMM) is also not applicable
as there
following methods, being the most appropriate method, in
the following manner, namely :- (a) comparable uncontrolled price method, by
which,- (i) the price charged or paid ... domestic transactions'' ;
Other methods mentioned in the said Rule are resale price method, cost plus method, profit
split method and transactional net margin
senior counsel further explained that if the
profits earned by the assessee are comparable with the profits
earned by other companies in the same industry ... most appropriate method. The most
appropriate method may be a profit based method (cost plus
method, transactional net margin method or profit split method
