Section 92C: Critically Analyzing the Mysterious “Sixth Method” of ALP Computation

In the subject of Transfer Pricing, the calculation of Arm’s Length Price is one of the crucial aspects of any Cross Border Controlled Transaction to show that there hasn’t been any profit shifting from a high tax jurisdiction to a low tax jurisdiction. The methods of computation for ALP are given in section 92C of the Income Tax Act, 1961 which provides six methods that are given as follows:In the subject of Transfer Pricing, the calculation of Arm’s Length Price is one of the crucial aspects of any Cross Border Controlled Transaction to show that there hasn’t been any profit shifting from a high tax jurisdiction to a low tax jurisdiction. The methods of computation for ALP are given in section 92C of the Income Tax Act, 1961 which provides six methods that are given as follows:taxmann.com Latest ArticlesRead More

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