Royalty paid by a taxpayer computed even on sales made to the Associated Enterprise is at arm’s length

Brief : Royalty paid by a taxpayer computed even on sales made to the Associated Enterprise is at arm’s length. Further, a taxpayer paying royalty to its Associated Enterprise can make additional payments for technical services rendered by personnel deputed by the Associated Enterprise.

Citation : ACIT Vs. Sona Okegawa Precision Forging Ltd. [2010-TII-41-ITAT-DEL-TP]

Court : Income-tax Appellate Tribunal, Delhi

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