Section 92C of ITA, 1961 : Section 92C: Computation Of Arms Length Price

ITA, 1961

JavaScript did not load properly

Some content might be missing or broken. Please try disabling content blockers or use a different browser like Chrome, Safari or Firefox.

Explanation using Example

Imagine a company in India, TechSolutions Pvt Ltd, which has a subsidiary in Singapore, TechSolutions SG. They engage in an international transaction where TechSolutions SG provides specialized software services to TechSolutions Pvt Ltd for $100,000. The Indian tax authorities suspect that this price is not reflective of the market rate and may have been set to shift profits to the Singapore subsidiary, where tax rates are lower.

The Income Tax Officer (ITO) decides to apply Section 92C of the Income-tax Act, 1961 to determine the arm's length price of the transaction. The ITO considers various methods such as the Comparable Uncontrolled Price (CUP) method, Resale Price Method (RPM), and others to find the most appropriate method for this transaction. A...

Login to access all pages and read more content.

To disable ads and read rest of the premium content, subscribe to KanoonGPT Pro.

🚀 Special Offer! Enjoy 1 Year of Ad-Free Browsing with any subscription.
KanoonGPT is now faster and smarter, powered by upgraded servers.
Subscribe today and unlock all new features!
Update: Discover how KanoonGPT revolutionizes legal research! Watch our demo video on the homepage to see how you can chat with various legal sections using our innovative hybrid AI search. Enjoy free unlimited AI access for a limited time!
Update: Page bookmarking and open in new tab is now supported! Simply use your browser's bookmark manager to save this page for quick access later.
Update: We're building AI tools for the Indian Law community. Help shape the future by filling out this quick form for a chance to get a free 1-year usage of the requested tool.

Download Digital Bare Acts on mobile or tablet with "Kanoon Library" app

Kanoon Library Android App - Play Store LinkKanoon Library iOS App - App Store Link