ITAT addressed transfer pricing adjustment regarding business ...

Transfer Pricing: Business Support Services Need Clear Distinction Between Cost Allocation and Actual Services Under Section 92CA

February 7, 2025

Case Laws Income Tax AT

ITAT addressed transfer pricing adjustment regarding business support services between associated enterprises. TPO rejected assessee's TNMM method and entity-level benchmarking, favoring CUP method. Tribunal found insufficient evidence demonstrating actual service receipt, noting mere documentation (master agreement, work statements, invoices, emails) inadequate to establish genuine service provision. Tribunal determined services appeared to be shareholder cost allocations rather than distinct business services. Due to inadequate documentation distinguishing between cost allocation and actual services rendered, matter remanded to TPO for de-novo adjudication. Issue restored for fresh determination under transfer pricing provisions without prejudice from prior findings. Appeal allowed for statistical purposes.

View Source

← Previous Next →

ITAT addressed transfer pricing adjustment regarding business ...

Transfer Pricing: Business Support Services Need Clear Distinction Between Cost Allocation and Actual Services Under Section 92CA

February 7, 2025

Case Laws Income Tax AT

You may also like:

Transfer pricing adjustments, selection of the most appropriate method (MAM), benchmarking approach (aggregation or segregation), factual rendering of services, arm's...

Transfer pricing issues: Royalty arrangement including trademark, know-how upheld based on CUP method over TNMM. Advertisement expenses remanded for fresh determination....

Service Tax Demand - On "Business Support Service": The Tribunal found that the uplinking services provided to broadcasters fall within the ambit of "Business Support...

Classification of services - Business Support Services or not - service of providing transponders on hire basis by IGSML to UEPL - transfer of right to use even without...

Classification of services under Business Support Services or not - The Tribunal observed that the appellant merely facilitates and assist the individuals who are...

The Income Tax Appellate Tribunal held that the export commission paid by the assessee to foreign agents in Korea and Indonesia for sales, marketing, and customer...

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

Classification of service - Business Support services or not - The Appellate Tribunal, referring to precedent cases, concluded that GTPL's activity of arranging...

Business Support Services - stock broker services - arrangement for the VPN - this is a cost sharing arrangement and not in the form of a service provider-service...

The case pertains to service tax liability arising from the sale/transfer of a business as a going concern by way of slump sale under the Income Tax Act, 1961. The issue...

Transfer pricing adjustments - Location Savings and Imputation of mark-up on pass through costs - this intra-group services rendered by the assessee to the parent...

CENVAT Credit - generation of electricity which, later on, is cleared to its sister unit - The Appellate Tribunal finds that the appellant is indeed entitled to Cenvat...

Exemption form GST on the business transfer undertaken - transfer of a going concern - transfer of a going concern means transfer of a running business which is capable...

Business Support Services - charges towards registration fees of the RTO - service in question is not covered under Business Support Service

Services which are supporting in nature to the main business, like services relating to customer relationship telemarketing, office infrastructure, etc. are covered...

Quick Updates: