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Computation of income from international transaction having regard to
arm’s length price.
92.
(1) Any income arising from an international transaction shall be
computed having regard to the arm’s length price.
Explanation.—For
the removal of doubts, it is hereby clarified that the allowance for any
expense or interest arising from an international transaction shall also
be determined having regard to the arm’s length price.
(2) Where in an international transaction, two or more associated
enterprises enter into a mutual agreement or arrangement for the
allocation or apportionment of, or any contribution to, any cost or
expense incurred or to be incurred in connection with a benefit, service
or facility provided or to be provided to any one or more of such
enterprises, the cost or expense allocated or apportioned to, or, as the
case may be, contributed by, any such enterprise shall be determined
having regard to the arm’s length price of such benefit, service or
facility, as the case may be.
(3) The provisions of this section shall not apply in a case where the
computation of income under sub-section (1) or the determination of the
allowance for any expense or interest under that sub-section, or the
determination of any cost or expense allocated or apportioned, or, as
the case may be, contributed under sub-section (2), has the effect of
reducing the income chargeable to tax or increasing the loss, as the
case may be, computed on the basis of entries made in the books of
account in respect of the previous year in which the international
transaction was entered into.]
Meaning of associated enterprise.
92A.
(1) For the purposes of this section and
sections 92,
92B,
92C,
92D,
92E
and
92F,
“associated enterprise”, in relation to another enterprise, means an
enterprise—
(a) which participates, directly or indirectly, or
through one or more intermediaries, in the management or control or
capital of the other enterprise; or
(b) in respect of which one or more persons who
participate, directly or indirectly, or through one or more
intermediaries, in its management or control or capital, are the same
persons who participate, directly or indirectly, or through one or more
intermediaries, in the management or control or capital of the other
enterprise.
(2) [For the purposes of sub-section (1), two enterprises shall be
deemed to be associated enterprises if, at any time during the previous
year,—]
(a) one enterprise holds, directly or indirectly,
shares carrying not less than twenty-six per cent of the voting power in
the other enterprise; or
(b) any person or enterprise holds, directly or
indirectly, shares carrying not less than twenty-six per cent of the
voting power in each of such enterprises; or
(c) a loan advanced by one enterprise to the other
enterprise constitutes not less than fifty-one per cent of the book
value of the total assets of the other enterprise; or
(d) one enterprise guarantees not less than ten per
cent of the total borrowings of the other enterprise; or
(e) more than half of the board of directors or
members of the governing board, or one or more executive directors or
executive members of the governing board of one enterprise, are
appointed by the other enterprise; or
(f) more than half of the directors or members of the
governing board, or one or more of the executive directors or members of
the governing board, of each of the two enterprises are appointed by the
same person or persons; or
(g) the manufacture or processing of goods or articles
or business carried out by one enterprise is wholly dependent on the use
of know-how, patents, copyrights, trade-marks, licences, franchises or
any other business or commercial rights of similar nature, or any data,
documentation, drawing or specification relating to any patent,
invention, model, design, secret formula or process, of which the other
enterprise is the owner or in respect of which the other enterprise has
exclusive rights; or
(h) ninety per cent or more of the raw materials and
consumables required for the manufacture or processing of goods or
articles carried out by one enterprise, are supplied by the other
enterprise, or by persons specified by the other enterprise, and the
prices and other conditions relating to the supply are influenced by
such other enterprise; or
(i) the goods or articles manufactured or processed
by one enterprise, are sold to the other enterprise or to persons
specified by the other enterprise, and the prices and other conditions
relating thereto are influenced by such other enterprise; or
(j) where one enterprise is controlled by an
individual, the other enterprise is also controlled by such individual
or his relative or jointly by such individual and relative of such
individual; or
(k) where one enterprise is controlled by a Hindu
undivided family, the other enterprise is controlled by a member of such
Hindu undivided family or by a relative of a member of such Hindu
undivided family or jointly by such member and his relative; or
(l) where one enterprise is a firm, association of
persons or body of individuals, the other enterprise holds not less than
ten per cent interest in such firm, association of persons or body of
individuals; or
(m) there exists between the two enterprises, any
relationship of mutual interest, as may be prescribed.
Meaning of international transaction.
92B.
(1) For the purposes of this section and
sections 92,
92C,
92D
and
92E,
“international transaction” means a transaction between two or more
associated enterprises, either or both of whom are non-residents, in the
nature of purchase, sale or lease of tangible or intangible property, or
provision of services, or lending or borrowing money, or any other
transaction having a bearing on the profits, income, losses or assets of
such enterprises, and shall include a mutual agreement or arrangement
between two or more associated enterprises for the allocation or
apportionment of, or any contribution to, any cost or expense incurred
or to be incurred in connection with a benefit, service or facility
provided or to be provided to any one or more of such enterprises.
(2) A transaction entered into by an enterprise with a person other than
an associated enterprise shall, for the purposes of sub-section (1), be
deemed to be a transaction entered into between two associated
enterprises, if there exists a prior agreement in relation to the
relevant transaction between such other person and the associated
enterprise, or the terms of the relevant transaction are determined in
substance between such other person and the associated enterprise.
Computation of arm’s length price.
92C.
(1) The arm’s length price in relation to an international transaction
shall be determined by any of the following methods, being the most
appropriate method, having regard to the nature of transaction or class
of transaction or class of associated persons or functions performed by
such persons or such other relevant factors as the Board may prescribe,
namely :—
(a) comparable uncontrolled price method;
(b) resale price method;
(c) cost plus method;
(d) profit split method;
(e) transactional net margin method;
(f) such other method as may be prescribed by the
Board.
(2) The most appropriate method referred to in sub-section (1) shall be
applied, for determination of arm’s length price, in the manner as may
be prescribed[Provided that where more than one price is
determined by the most appropriate method, the arm’s length price shall
be taken to be the arithmetical mean of such prices:
Provided further
that if the variation between the arm’s length price so determined and
price at which the international transaction has actually been
undertaken does not exceed five per cent of the latter, the price at
which the international transaction has actually been undertaken shall
be deemed to be the arm’s length price.]
(3) Where during the course of any proceeding for the assessment of
income, the Assessing Officer is, on the basis of material or
information or document in his possession, of the opinion that—
(a) the price charged or paid in an international
transaction has not been determined in accordance with sub-sections (1)
and (2); or
(b) any information and document relating to an
international transaction have not been kept and maintained by the
assessee in accordance with the provisions contained in sub-section (1)
of
section 92D
and the rules made in this behalf; or
(c) the information or data used in computation of the
arm’s length price is not reliable or correct; or
(d) the assessee has failed to furnish, within the
specified time, any information or document which he was required to
furnish by a notice issued under sub-section (3) of
section 92D,
the Assessing Officer may proceed to determine the arm’s length price in
relation to the said international transaction in accordance with
sub-sections (1) and (2), on the basis of such material or information
or document available with him:
Provided
that an opportunity shall be given by the Assessing Officer by serving a
notice calling upon the assessee to show cause, on a date and time to be
specified in the notice, why the arm’s length price should not be so
determined on the basis of material or information or document in the
possession of the Assessing Officer.
(4) Where an arm’s length price is determined by the Assessing Officer
under sub-section (3), the Assessing Officer may compute the total
income of the assessee having regard to the arm’s length price so
determined :
Provided
that no deduction under
section 10A
[or
section 10AA]
or
section 10B
or under Chapter VI-A shall be allowed in respect of the amount of
income by which the total income of the assessee is enhanced after
computation of income under this sub-section :
Provided further
that where the total income of an associated enterprise is computed
under this sub-section on determination of the arm’s length price paid
to another associated enterprise from which tax has been deducted [or
was deductible] under the provisions of Chapter XVIIB, the income
of the other associated enterprise shall not be recomputed by reason of
such determination of arm’s length price in the case of the first
mentioned enterprise.
[Reference
to Transfer Pricing Officer.
92CA.
(1) Where any person, being the assessee, has entered into an
international transaction in any previous year, and the Assessing
Officer considers it necessary or expedient so to do, he may, with the
previous approval of the Commissioner, refer the computation of the
arm’s length price in relation to the said international transaction
under
section 92C
to the Transfer Pricing Officer.
(2) Where a reference is made under sub-section (1), the Transfer
Pricing Officer shall serve a notice on the assessee requiring him to
produce or cause to be produced on a date to be specified therein, any
evidence on which the assessee may rely in support of the computation
made by him of the arm’s length price in relation to the international
transaction referred to in sub-section (1).
(3) On the date specified in the notice under sub-section (2), or as
soon thereafter as may be, after hearing such evidence as the assessee
may produce, including any information or documents referred to in
sub-section (3) of
section 92D
and after considering such evidence as the Transfer Pricing Officer may
require on any specified points and after taking into account all
relevant materials which he has gathered, the Transfer Pricing Officer
shall, by order in writing, determine the arm’s length price in relation
to the international transaction in accordance with sub-section (3) of
section 92C
and send a copy of his order to the Assessing Officer and to the
assessee.
[(3A) Where a reference was made under sub-section (1) before the 1st
day of June, 2007 but the order under sub-section (3) has not been made
by the Transfer Pricing Officer before the said date, or a reference
under sub-section (1) is made on or after the 1st day of June, 2007, an
order under sub-section (3) may be made at any time before sixty days
prior to the date on which the period of limitation referred to in
section 153,
or as the case may be, in
section 153B
for making the order of assessment or reassessment or recomputation or
fresh assessment, as the case may be, expires.]
[(4) On receipt of the order under sub-section (3), the Assessing
Officer shall proceed to compute the total income of the assessee under
sub-section (4) of
section 92C
in conformity with the arm’s length price as so determined by the
Transfer Pricing Officer.]
(5) With a view to rectifying any mistake apparent from the record, the
Transfer Pricing Officer may amend any order passed by him under
sub-section (3), and the provisions of
section 154
shall, so far as may be, apply accordingly.
(6) Where any amendment is made by the Transfer Pricing Officer under
sub-section (5), he shall send a copy of his order to the Assessing
Officer who shall thereafter proceed to amend the order of assessment in
conformity with such order of the Transfer Pricing Officer.
(7) The Transfer Pricing Officer may, for the purposes of determining
the arm’s length price under this section, exercise all or any of the
powers specified in clauses (a) to (d) of sub-section (1)
of
section 131
or sub-section (6) of
section 133.
Explanation.—For
the purposes of this section, “Transfer Pricing Officer” means a Joint
Commissioner or Deputy Commissioner or Assistant Commissioner authorised
by the Board32
to perform all or any of the functions of an Assessing Officer specified
in sections 92C and 92D in respect of any person or class of persons.]
Maintenance
and keeping of information and document by persons entering into an
international transaction.
92D.
(1) Every person who has entered into an international transaction shall
keep and maintain such information and document in respect thereof, as
may be prescribed
(2) Without prejudice to the provisions contained in sub-section (1),
the Board may prescribe the period for which the information and
document shall be kept and maintained under that sub-section.
(3) The Assessing Officer or the Commissioner (Appeals) may, in the
course of any proceeding under this Act, require any person who has
entered into an international transaction to furnish any information or
document in respect thereof, as may be prescribed under sub-section (1),
within a period of thirty days from the date of receipt of a notice
issued in this regard :
Provided
that the Assessing Officer or the Commissioner (Appeals) may, on an
application made by such person, extend the period of thirty days by a
further period not exceeding thirty days.
Definitions of certain terms relevant to computation of arm’s length
price, etc.
92F.
In
sections 92,
92A,
92B,
92C,
92D
and
92E,
unless the context otherwise requires,—
(i) “accountant” shall have the same meaning as in
the Explanation below sub-section (2) of
section 288;
(ii) “arm’s length price” means a price which is
applied or proposed to be applied in a transaction between persons other
than associated enterprises, in uncontrolled conditions;
(iii) “enterprise” means a person (including a
permanent establishment of such person) who is, or has been, or is
proposed to be, engaged in any activity, relating to the production,
storage, supply, distribution, acquisition or control of articles or
goods, or know-how, patents, copyrights, trade-marks, licences,
franchises or any other business or commercial rights of similar nature,
or any data, documentation, drawing or specification relating to any
patent, invention, model, design, secret formula or process, of which
the other enterprise is the owner or in respect of which the other
enterprise has exclusive rights, or the provision of services of any
kind, [or in carrying out any work in pursuance of a contract,] or in
investment, or providing loan or in the business of acquiring, holding,
underwriting or dealing with shares, debentures or other securities of
any other body corporate, whether such activity or business is carried
on, directly or through one or more of its units or divisions or
subsidiaries, or whether such unit or division or subsidiary is located
at the same place where the enterprise is located or at a different
place or places;
[(iiia) “permanent establishment”, referred to in clause (iii),
includes a fixed place of business through which the business of the
enterprise is wholly or partly carried on;]
[(iv) “specified date” shall have the same meaning as assigned
to “due date” in Explanation 2 below sub-section (1) of
section 139;]
(v) “transaction” includes an arrangement,
understanding or action in concert,—
(A) whether or not such arrangement, understanding or
action is formal or in writing; or
(B) whether or not such arrangement, understanding or
action is intended to be enforceable by legal proceeding.]
Determination of income in the case of non-residents.
10.
In
any case in which the [Assessing Officer] is of opinion that the actual
amount of the income accruing or arising to any non-resident person
whether directly or indirectly, through or from any business connection
in India or through or from any property in India or through or from any
asset or source of income in India or through or from any money lent at
interest and brought into India in cash or in kind cannot be definitely
ascertained, the amount of such income for the purposes of assessment to
income-tax [* * *] may be calculated :—
(i) at such percentage of the turnover so accruing or
arising as the [Assessing Officer] may consider to be reasonable, or
(ii) on any amount which bears the same proportion to
the total profits and gains of the business of such person (such profits
and gains being computed in accordance with the provisions of the Act),
as the receipts so accruing or arising bear to the total receipts of the
business, or
(iii) in
such other manner as the [Assessing Officer] may deem suitable.
[Meaning
of expressions used in computation of arm’s length price
10A.
For the purposes of this rule and rules 10B to 10E,—
(a) “uncontrolled transaction” means a transaction
between enterprises other than associated enterprises, whether resident
or non-resident;
(b) “property” includes goods, articles or things, and
intangible property;
(c) “services” include financial services;
(d) “transaction” includes a number of closely linked
transactions.
Determination of arm’s length price under section 92C.
10B.
(1) For the purposes of sub-section (2) of section 92C, the arm’s length
price in relation to an international transaction shall be determined by
any of the following methods, being the most appropriate method, in the
following manner, namely :—
(a)
comparable
uncontrolled price method, by which,—
(i) the price charged or paid for property transferred or
services provided in a comparable uncontrolled transaction, or a number
of such transactions, is identified;
(ii) such price is adjusted to account for differences, if
any, between the international transaction and the comparable
uncontrolled transactions or between the enterprises entering into such
transactions, which could materially affect the price in the open
market;
(iii) the adjusted price arrived at under sub-clause (ii)
is taken to be an arm’s length price in respect of the property
transferred or services provided in the international transaction;
(b) resale price method, by which,—
(i) the price at which property purchased or services
obtained by the enterprise from an associated enterprise is resold or
are provided to an unrelated enterprise, is identified;
(ii) such resale price is reduced by the amount of a
normal gross profit margin accruing to the enterprise or to an unrelated
enterprise from the purchase and resale of the same or similar property
or from obtaining and providing the same or similar services, in a
comparable uncontrolled transaction, or a number of such transactions;
(iii) the price so arrived at is further reduced by the
expenses incurred by the enterprise in connection with the purchase of
property or obtaining of services;
(iv) the price so arrived at is adjusted to take into
account the functional and other differences, including differences in
accounting practices, if any, between the international transaction and
the comparable uncontrolled transactions, or between the enterprises
entering into such transactions, which could materially affect the
amount of gross profit margin in the open market;
(v) the adjusted price arrived at under sub-clause (iv)
is taken to be an arm’s length price in respect of the purchase of the
property or obtaining of the services by the enterprise from the
associated enterprise;
(c) cost plus method, by which,—
(i) the direct and indirect costs of production incurred
by the enterprise in respect of property transferred or services
provided to an associated enterprise, are determined;
(ii) the amount of a normal gross profit mark-up to such
costs (computed according to the same accounting norms) arising from the
transfer or provision of the same or similar property or services by the
enterprise, or by an unrelated enterprise, in a comparable uncontrolled
transaction, or a number of such transactions, is determined;
(iii) the normal gross profit mark-up referred to in
sub-clause (ii) is adjusted to take into account the functional
and other differences, if any, between the international transaction and
the comparable uncontrolled transactions, or between the enterprises
entering into such transactions, which could materially affect such
profit mark-up in the open market;
(iv) the costs referred to in sub-clause (i) are
increased by the adjusted profit mark-up arrived at under sub-clause (iii);
(v) the sum so arrived at is taken to be an arm’s length
price in relation to the supply of the property or provision of services
by the enterprise;
(d) profit split method, which may be applicable
mainly in international transactions involving transfer of unique
intangibles or in multiple international transactions which are so
interrelated that they cannot be evaluated separately for the purpose of
determining the arm’s length price of any one transaction, by which—
(i) the combined net profit of the associated enterprises
arising from the international transaction in which they are engaged, is
determined;
(ii) the relative contribution made by each of the
associated enterprises to the earning of such combined net profit, is
then evaluated on the basis of the functions performed, assets employed
or to be employed and risks assumed by each enterprise and on the basis
of reliable external market data which indicates how such contribution
would be evaluated by unrelated enterprises performing comparable
functions in similar circumstances;
(iii) the combined net profit is then split amongst the
enterprises in proportion to their relative contributions, as evaluated
under sub-clause (ii);
(iv) the profit thus apportioned to the assessee is taken
into account to arrive at an arm’s length price in relation to the
international transaction :
Provided
that the combined net profit referred to in sub-clause (i) may,
in the first instance, be partially allocated to each enterprise so as
to provide it with a basic return appropriate for the type of
international transaction in which it is engaged, with reference to
market returns achieved for similar types of transactions by independent
enterprises, and thereafter, the residual net profit remaining after
such allocation may be split amongst the enterprises in proportion to
their relative contribution in the manner specified under sub-clauses (ii)
and (iii), and in such a case the aggregate of the net profit
allocated to the enterprise in the first instance together with the
residual net profit apportioned to that enterprise on the basis of its
relative contribution shall be taken to be the net profit arising to
that enterprise from the international transaction;
(e) transactional net
margin method, by which,—
(i) the net profit margin realised by the enterprise from
an international transaction entered into with an associated enterprise
is computed in relation to costs incurred or sales effected or assets
employed or to be employed by the enterprise or having regard to any
other relevant base;
(ii) the net profit margin realised by the enterprise or
by an unrelated enterprise from a comparable uncontrolled transaction or
a number of such transactions is computed having regard to the same
base;
(iii) the net profit margin referred to in sub-clause (ii)
arising in comparable uncontrolled transactions is adjusted to take into
account the differences, if any, between the international transaction
and the comparable uncontrolled transactions, or between the enterprises
entering into such transactions, which could materially affect the
amount of net profit margin in the open market;
(iv) the net profit margin realised by the enterprise and
referred to in sub-clause (i) is established to be the same as
the net profit margin referred to in sub-clause (iii);
(v) the net profit margin thus established is then taken
into account to arrive at an arm’s length price in relation to the
international transaction.
(2) For the purposes of sub-rule (1), the comparability of an
international transaction with an uncontrolled transaction shall be
judged with reference to the following, namely:—
(a) the specific characteristics of the property
transferred or services provided in either transaction;
(b) the functions performed, taking into account
assets employed or to be employed and the risks assumed, by the
respective parties to the transactions;
(c) the contractual terms (whether or not such terms
are formal or in writing) of the transactions which lay down explicitly
or implicitly how the responsibilities, risks and benefits are to be
divided between the respective parties to the transactions;
(d)
conditions prevailing in the markets in which the respective parties to
the transactions operate, including the geographical location and size
of the markets, the laws and Government orders in force, costs of labour
and capital in the markets, overall economic development and level of
competition and whether the markets are wholesale or retail.
(3) An uncontrolled transaction shall be comparable to an international
transaction if—
(i) none of the differences, if any, between the
transactions being compared, or between the enterprises entering into
such transactions are likely to materially affect the price or cost
charged or paid in, or the profit arising from, such transactions in the
open market; or
(ii) reasonably accurate adjustments can be made to
eliminate the material effects of such differences.
(4) The data to be used in analysing the comparability of an
uncontrolled transaction with an international transaction shall be the
data relating to the financial year in which the international
transaction has been entered into :
Provided that data relating to a period not being more than two years
prior to such financial year may also be considered if such data reveals
facts which could have an influence on the determination of transfer
prices in relation to the transactions being compared.
Most
appropriate method.
10C.
(1) For the purposes of sub-section (1) of section 92C, the most
appropriate method shall be the method which is best suited to the facts
and circumstances of each particular international transaction, and
which provides the most reliable measure of an arm’s length price in
relation to the international transaction.
(2) In selecting the most appropriate method as specified in sub-rule
(1), the following factors shall be taken into account, namely:—
(a) the nature and class of the international
transaction;
(b) the class or classes of associated enterprises
entering into the transaction and the functions performed by them taking
into account assets employed or to be employed and risks assumed by such
enterprises;
(c) the availability, coverage and reliability of data
necessary for application of the method;
(d) the degree of comparability existing between the
international transaction and the uncontrolled transaction and between
the enterprises entering into such transactions;
(e) the extent to which reliable and accurate
adjustments can be made to account for differences, if any, between the
international transaction and the comparable uncontrolled transaction or
between the enterprises entering into such transactions;
(f) the nature, extent and reliability of assumptions
required to be made in application of a method
Information
and documents to be kept and maintained under section 92D.
10D.
(1) Every person who has entered into an international transaction shall
keep and maintain the following information and documents, namely:—
(a) a description of the ownership structure of the
assessee enterprise with details of shares or other ownership interest
held therein by other enterprises;
(b) a profile of the multinational group of which the
assessee enterprise is a part along with the name, address, legal status
and country of tax residence of each of the enterprises comprised in the
group with whom international transactions have been entered into by the
assessee, and ownership linkages among them;
(c) a broad description of the business of the
assessee and the industry in which the assessee operates, and of the
business of the associated enterprises with whom the assessee has
transacted;
(d) the nature and terms (including prices) of
international transactions entered into with each associated enterprise,
details of property transferred or services provided and the quantum and
the value of each such transaction or class of such transaction;
(e) a description of the functions performed, risks
assumed and assets employed or to be employed by the assessee and by the
associated enterprises involved in the international transaction;
(f) a record of the economic and market analyses,
forecasts, budgets or any other financial estimates prepared by the
assessee for the business as a whole and for each division or product
separately, which may have a bearing on the international transactions
entered into by the assessee;
(g) a record of uncontrolled transactions taken into
account for analysing their comparability with the international
transactions entered into, including a record of the nature, terms and
conditions relating to any uncontrolled transaction with third parties
which may be of relevance to the pricing of the international
transactions;
(h) a record of the analysis performed to evaluate
comparability of uncontrolled transactions with the relevant
international transaction;
(i) a description of the methods considered for
determining the arm’s length price in relation to each international
transaction or class of transaction, the method selected as the most
appropriate method along with explanations as to why such method was so
selected, and how such method was applied in each case;
(j) a record of the actual working carried out for
determining the arm’s length price, including details of the comparable
data and financial information used in applying the most appropriate
method, and adjustments, if any, which were made to account for
differences between the international transaction and the comparable
uncontrolled transactions, or between the enterprises entering into such
transactions;
(k) the assumptions, policies and price negotiations,
if any, which have critically affected the determination of the arm’s
length price;
(l) details of the adjustments, if any, made to
transfer prices to align them with arm’s length prices determined under
these rules and consequent adjustment made to the total income for tax
purposes;
(m) any other information, data or document, including
information or data relating to the associated enterprise, which may be
relevant for determination of the arm’s length price.
(2) Nothing contained in sub-rule (1) shall apply in a case where the
aggregate value, as recorded in the books of account, of international
transactions entered into by the assessee does not exceed one crore
rupees :
Provided
that the assessee shall be required to substantiate, on the basis of
material available with him, that income arising from international
transactions entered into by him has been computed in accordance with
section 92.
(3) The information specified in sub-rule (1) shall be supported by
authentic documents, which may include the following :
(a) official publications, reports, studies and data
bases from the Government of the country of residence of the associated
enterprise, or of any other country;
(b) reports of market research studies carried out and
technical publications brought out by institutions of national or
international repute;
(c) price publications including stock exchange and
commodity market quotations;
(d) published accounts and financial statements
relating to the business affairs of the associated enterprises;
(e) agreements and contracts entered into with
associated enterprises or with unrelated enterprises in respect of
transactions similar to the international transactions;
(f) letters and other correspondence documenting any
terms negotiated between the assessee and the associated enterprise;
(g) documents normally issued in connection with
various transactions under the accounting practices followed.
(4) The information and documents specified under sub-rules (1) and (2),
should, as far as possible, be contemporaneous and should exist latest
by the specified date referred to in clause (iv) of section 92F:
Provided
that where an international transaction continues to have effect over
more than one previous year, fresh documentation need not be maintained
separately in respect of each previous year, unless there is any
significant change in the nature or terms of the international
transaction, in the assumptions made, or in any other factor which could
influence the transfer price, and in the case of such significant
change, fresh documentation as may be necessary under sub-rules (1) and
(2) shall be maintained bringing out the impact of the change on the
pricing of the international transaction.
(5) The information and documents specified in sub-rules (1) and (2)
shall be kept and maintained for a period of eight years from the end of
the relevant assessment year.
Report
from an accountant to be furnished under section 92E.
10E.
The report from an accountant required to be furnished under section 92E
by every person who has entered into an international transaction during
a previous year shall be in
Form No. 3CEB
and be verified in the manner indicated therein.]
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