Transfer Pricing – Important Law On ‘Comparable Uncontrolled Transaction’ Explained

DCIT Vs BP India Services Pvt. Ltd. (ITAT Mumbai) Decisive factors for determining inclusion or exclusion of any case in/from the list of com-parables are the specific characteristics of services provided , assets employed, risks assumed, the contractual terms and conditions prevailing including the geographical location and size of the markets, costs of labour and capital in the markets etc. Nowhere, the higher or lower profit rate, as presumed by the ld. CIT(A), has been prescribed as the determinative factor to make a case incomparable. Rightly so, because profit is not a factor in itself,...