CONTENTS BOOK ONE GENERAL PRINCIPLES OF TRANSFER PRICING CHAPTER 1 : INTRODUCTION 3 CHAPTER 2 : FEATURES OF THE TRANSFER PRICING REGIME UNDER CHAPTER X 10 CHAPTER 3 : TRANSFER PRICING PROVISIONS OF CHAPTER X - WHEN APPLICABLE TO AN ASSESSEE 26 CHAPTER 4 : TRANSFER PRICING COMPLIANCES 34 BOOK TWO DIVISION ONE APPLICABILITY OF TPR TO INTERNATIONAL TRANSACTIONS CHAPTER 5 : WHO ARE ASSOCIATED ENTERPRISES (AEs)? 39 CHAPTER 6 : WHAT IS INTERNATIONAL TRANSACTION? 58 CHAPTER 7 : INTERNATIONAL TRANSACTIONS : PUR- CHASE, SALE OR LEASE OF TANGIBLE PROPERTY 79 CHAPTER 8 : INTERNATIONAL TRANSACTIONS : INTANGI- BLE PROPERTY TRANSACTIONS 82 CHAPTER 9 : INTERNATIONAL TRANSACTIONS : BORROWING OR LENDING OF MONEY/ FINANCING 92 I-5
CONTENTS I-6 CHAPTER 10 : INTERNATIONAL TRANSACTIONS : PRO- VISION OF SERVICES 106 CHAPTER 11 : INTERNATIONAL TRANSACTIONS : COST CONTRIBUTION AGREEMENTS 116 CHAPTER 12 : BUSINESS RESTRUCTURING OR ORGANI- SATION 120 DIVISION TWO COMPUTATION OF ARM S LENGTH PRICE OF INTERNATIONAL TRANSACTIONS CHAPTER 13 : WHAT IS ARM s LENGTH PRICE 125 CHAPTER 14 : HOW TO COMPUTE ARM s LENGTH PRICE 138 DIVISION THREE COMPARABILITY ANALYSIS OF INTERNATIONAL TRANSACTIONS CHAPTER 15 : BENCHMARKING : COMPARABILITY ANALYSIS & COMPARABLES 149 CHAPTER 16 : UNDERSTANDING BUSINESS, INDUSTRY AND CONTROLLED TRANSACTION 154 CHAPTER 17 : EXAMINATION OF COMPARABILITY FACTORS OF CONTROLLED TRANSACTION 165 CHAPTER 18 : TESTED PARTY 187 CHAPTER 19 : IDENTIFICATION OF COMPARABLES 190 CHAPTER 20 : DATA TO BE USED IN COMPARABILITY ANALYSIS 267 CHAPTER 21 : WHAT IS COMPARABLE UNCONTROLLABLE PRICE (CUP) METHOD AND HOW TO APPLY IT TO CALCULATE ALP? 272 CHAPTER 22 : WHAT IS RESALE PRICE METHOD (RPM) AND HOW TO APPLY IT TO CALCULATE ALP? 318 CHAPTER 23 : WHAT IS COST PLUS METHOD (CPM) AND HOW TO APPLY IT TO CALCULATE ALP? 324
I-7 CONTENTS CHAPTER 24 : WHAT IS PROFIT SPLIT METHOD (PSM) AND HOW TO APPLY IT TO CALCULATE ALP? 331 CHAPTER 25 : WHAT IS TRANSACTIONAL NET MARGIN METHOD (TNMM) AND HOW TO APPLY IT TO CALCULATE ALP? 342 CHAPTER 26 : ANY OTHER METHOD - RULE 10AB 407 CHAPTER 27 : MOST APPROPRIATE METHOD (MAM) 411 CHAPTER 28 : INTERNATIONAL TRANSACTIONS : DETER- MINATION OF ALP FOR IMPORT OF GOODS 444 CHAPTER 29 : INTERNATIONAL TRANSACTIONS : DETER- MINATION OF ALP FOR INTEREST FREE LOAN TO AEs 446 CHAPTER 30 : INTERNATIONAL TRANSACTIONS IN- VOLVING INTANGIBLES : DETERMINA- TION OF ALP 450 CHAPTER 31 : INTERNATIONAL TRANSACTIONS : WHEN DEVELOPMENT CENTRES IN INDIA CAN BE TREATED AS CONTRACT R&D SERVICE PROVIDER WITH INSIGNIFICANT RISK 451 CHAPTER 32 : INTERNATIONAL TRANSACTIONS : DETER- MINATION OF ALP FOR INDENTING ACTIVITY 453 DIVISION FOUR TP ADJUSTMENTS, THIN CAP ADJUSTMENTS & SECONDARY ADJUSTMENTS IN INTERNATIONAL TRANSACTIONS CHAPTER 33 : TRANSFER PRICING ADJUSTMENTS 457 CHAPTER 34 : THIN CAPITALIZATION ADJUSTMENTS 483 CHAPTER 35 : SECONDARY ADJUSTMENTS 489
CONTENTS I-8 DIVISION FIVE TRANSFER PRICING PROCEDURES CHAPTER 36 : POWER OF AO TO COMPUTE ALP 507 CHAPTER 37 : REFERENCE TO TRANSFER PRICING OFFICER - SECTION 92CA 508 CHAPTER 38 : TRANSFER PRICING DISPUTE RESOLUTION MECHANISM 533 CHAPTER 39 : SAFE HARBOUR RULES 545 CHAPTER 40 : ADVANCE PRICING AGREEMENT 567 CHAPTER 41 : OBLIGATION OF ASSESSEES TO MAINTAIN TRANSFER PRICING DOCUMENTATION 603 CHAPTER 42 : AUDIT REPORT 631 CHAPTER 43 : AUDIT REPORT & DOCUMENTATION - INTERNATIONAL TRANSACTIONS 641 CHAPTER 44 : DUE DATE FOR FILING RETURN FOR ASSE- SSEES REQUIRED TO FURNISH AUDIT REPORT U/S 92E - SECTION 139 681 CHAPTER 45 : TIME LIMITS FOR ASSESSMENT AND RE- ASSESSMENT - SECTIONS 153 AND 153B 682 BOOK THREE SPECIFIED DOMESTIC TRANSACTIONS CHAPTER 46 : DEFINITION OF SPECIFIED DOMESTIC TRANSACTIONS 687 CHAPTER 47 : AUDIT REPORT & DOCUMENTATION - SPECIFIED DOMESTIC TRANSACTIONS 693 BOOK FOUR MISCELLANEOUS CHAPTER 48 : PENALTY - SECTIONS 271, 271AA, 271BA AND 271G 719
I-9 CONTENTS APPENDICES APPENDIX 1 : RELEVANT SECTIONS OF INCOME-TAX ACT, 1961 729 APPENDIX 2 : RELEVANT RULES OF INCOME-TAX RULES, 1962 766 APPENDIX 3 : RELEVANT FORMS OF INCOME-TAX RULES, 1962 816 APPENDIX 4 : CIRCULARS AND NOTIFICATIONS 845 APPENDIX 5 : DISPUTE RESOLUTION PANEL, REFERENCE TO 863