prescribes the method
s of determining ALP, having regard to the most
appropriate method which will be decided in
accordance with the rules prescribed. Rule ... closely
linked transactions. Rule 10B(1)(d) of the Rules
advocate profit split method of determining ALP
where international transactions involve transfer of
unique intangible
other methods provided are cost
of plus method which is applicable to the
transactions relating to manufacture and sale of
goods and Profit Split Method ... These two methods cannot be made
applicable to the facts before use. The only
remaining method is the Transaction net margin
method (TNMM) by which
Pr Commissioner Of vs M/S Softbrands India on 25 June, 2018
Bench: Vineet Kothari
transaction]
shall be determined by any of the following methods, being
the most appropriate method, having regard to the nature of
transaction or class ... comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(4) profit split method;
(e) transactional net margin method;
(f) such other 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 ... comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(4) profit split method;
(e) transactional net margin method;
(f) such other 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;
(e) transactional net margin method
Most Appropriate Method' by the
Authorities under the Act. The methods
provided are:
Clause (a): Comparable Uncontrolled
Principles Method (CUP);
Date of Judgment ... Clause (b): Resale Price Method (RP)
Clause (c): Cost Plus Method (CP)
Clause (d): Profit Split Method (PS)
Clause (e): Transactional Net Margin
Method (TNMM
Comparable Uncontrolled
Principles Method (CUP);
Clause (b): Resale Price Method (RP)
Clause (c): Cost Plus Method (CP)
Clause (d): Profit Split Method (PS)
Clause ... learned counsels that the TNNM Method appears
to be the most popular and widely adopted
Method for determining the 'Arm's length price
methods
provided are:
Clause (a): Comparable Uncontrolled
Principles Method (CUP);
Clause (b): Resale Price Method (RP)
Clause (c): Cost Plus Method (CP)
Date of Judgment ... Clause (d): Profit Split Method (PS)
Clause (e): Transactional Net Margin
Method (TNMM); and
Clause (f): such other Method as may
be prescribed
Comparable Uncontrolled
Principles Method (CUP);
Clause (b): Resale Price Method (RP)
Clause (c): Cost Plus Method (CP)
Clause (d): Profit Split Method (PS)
Clause ... learned counsels that the TNNM Method
appears to be the most popular and widely
adopted Method for determining the 'Arm's
length price
