ALP cannot be applied to determine ‘ordinary profits’ for computing S.10A deduction

The provisions of Transfer Pricing regulations contained in Section 92 belong to a separate code enacted for computing income from international transactions having regard to Arm’s Length Price (ALP) so as to confirm that there is no tax avoidance by the taxpayer. Operation of Transfer Pricing provisions ends when the Transfer Pricing Officer passes an order holding that the operating profit of the taxpayer is compatible with ALP norms and no adjustment is necessary.

Limiting the profit eligible for tax holiday under Section

Please become a Premium member. If you are already a Premium member, login here to access the full content.