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The Central Government notifies the price variation limits for international transactions and specified domestic transactions for assessment year 2017-18 and assessment year 2018-19. The variation does not exceed one per cent of the actual price for wholesale trading. The variation does not exceed three per cent of the actual price in all other cases. The actual transaction price is deemed to be the arm's length price when it meets these limits. Wholesale trading requires the purchase cost of finished goods to be eighty per cent or more of the total cost. Wholesale trading also requires the average monthly closing inventory of such goods to be ten per cent or less of sales.
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2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 9th June, 2017 [Income-tax]
S.O. 1866(E).—In exercise of the powers conferred by the third proviso to sub-section (2) of section 92C of the Income-tax Act, 1961 (43 of 1961)(hereinafter referred to as the ‘Act’), read with proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962, the Central Government hereby notifies that where the variation between the arm’s length price determined under section 92C of the Act and the price at which the international transaction or specified domestic transaction has actually been undertaken does not exceed one per cent. of the latter in respect of wholesale trading and three per cent. of the latter in all other cases, the price at which the international transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm’s length price for assessment year 2017-18 and assessment year 2018-19.
Explanation.- For the purposes of this notification, “wholesale trading” means an international transaction or specified domestic transaction of trading in goods, which fulfils the following conditions, namely:—
[Notification No. 50/2017/F. No. 500/1/2014-APA-II] PUNEET GULATI, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. RAKESH SUKUL Digitally signed by RAKESH SUKUL Date: 2017.06.10 16:09:34 +05'30'
