On 22.05.2015, the Ministry of Finance uploaded the draft outlines of the new scheme of the Finance Act, 2014, which amended the provision of Income-tax Act relating to transfer pricing regime, on the website of the Finance Ministry (www.finmin.nic.in) and website of the Income-tax Department (www.incometaxindia.gov.in) for comments from stakeholders and general public by 31.05.2015. The proposed amendment in Section 92C of the Income-tax Act facilitates introduction of “range” concept for determination of Arm’s Length Price of an international transaction or a specified domestic transaction, and use of ‘multiple year data’ for comparability analysis of transfer pricing.
-Ministry of Finance
Very nice post, However, Arm’s Length Price can be computed by the following methods.
1. Comparable Uncontrolled Price Method.
2. Resale Price Method.
3. Cost Plus Method.
4. Profit Split Method.
5. Transaction Net Margin Method.