This summary discusses various transfer pricing and tax issues. ...

Software co. faces AMP expenses & marketing reimbursement adjustments; Tribunal rules on transfer pricing benchmarking methods.

Case Laws Income Tax

September 20, 2024

This summary discusses various transfer pricing and tax issues. It analyzes whether Advertisement, Marketing and Promotion (AMP) expenses incurred by the assessee were for the sole benefit of its associated enterprise, thus constituting an international transaction u/s 92B. The Tribunal held that separate AMP adjustment is not required when the distribution business is already benchmarked. Regarding benchmarking of reimbursement of marketing expenses, the Tribunal directed a 20% markup adjustment to resolve the long-pending issue. It also covers the deselection of certain companies for benchmarking the software division's arm's length price, depreciation on the Dharuhera unit, dividend distribution tax u/s 115-O, and depreciation on software license fees. The Tribunal remitted the software license fee issue to the Assessing Officer for verification and recomputation as per the Income Tax Rules.

View Source

← Previous Next →

This summary discusses various transfer pricing and tax issues. ...

Software co. faces AMP expenses & marketing reimbursement adjustments; Tribunal rules on transfer pricing benchmarking methods.

Case Laws Income Tax

September 20, 2024

You may also like:

Transfer Pricing Adjustments on Corporate Guarantee Charges, Interest on Optionally Convertible Loans (OCL), and Reimbursement of Expenses. - The Tribunal found that...

TP adjustment on account of reimbursement of seafarer expenses - Revenue has only doubted the genuineness of the alleged reimbursement of expenses made by the assessee...

TP adjustments towards AMP expenditure pertaining to trading segment AND reimbursement of warranty expenses to AE - the AMP expenses and warranty expenses cannot be...

Adjustment of excess service tax paid with subsequent service tax liability - case of Revenue is that Rule 6 (3) of Service Tax Rules, 1994 do not provide for such...

TP Adjustment - adjustment on account of AMP - we cannot infer the existence of international transactions qua AMP expenses between taxpayer and AE beyond the...

TP Adjustment - AMP adjustment - Assessee has already been remunerated for the marketing expenses incurred on behalf of the AEs along with commission markup, and,...

TP Adjustment - adjustment made on account of advertisement, marketing and promotion (AMP) expenses - internatinal transaction - the AMP expenditure incurred by the...

Transfer pricing adjustment in respect of Advertising, Marketing & Promotion (AMP) expenses -The assessee was a full fledge distributor and as such the benefit of AMP...

TP Adjustment - international transaction - in the absence of no written agreement exists between the assessee and its AE requiring the assessee to incur AMP expenses,...

Penalty u/s 271(1)(c) - TP Adjustment - it is a debatable issue whether reimbursement of expenses qualifies as FTS and there are various decisions which have held that...

TP Adjustment - AMP expenses by applying bright line test on protective basis - TP adjustment amounting by applying BLT is not sustainable on protective basis having no...

Transfer pricing adjustment - AMP expenses - the selling expenses directly incurred in connection with sales not leading to brand promotion, should not be brought within...

Rectification of a mistake apparent from the record u/s 154 of the Income Tax Act. The assessee had provided specific details and facts regarding the nature of alleged...

Accrual of income - Reimbursement of expenses treated as income of the Assessee - Application of Markup on Reimbursement Expenses: The contentious issue was whether the...

Transfer pricing adjustment on equity broking services (non-DVP segment/CH settlement) rejected due to negligible difference of 0.01% after considering cost adjustment...

Quick Updates: