On 26 June 2023, the Indian Central Board of Direct Taxes (CBDT) has issued Notification No. 46/2023, setting arm’s-length pricing variation limits for the 2023-24 assessment year. The limits are 1 percent for wholesale trading and 3 percent for other cases. The notification aims to regulate fair pricing in transactions and deems the transaction price as the arm’s-length price if it falls within these limits. The notification also defines “wholesale trading” and assures that no adverse effects will result from its retrospective effect. This measure promotes transparent pricing practices and structured assessment of taxable income in India.
Related Posts
India: CBDT issues additional guidance on Direct Tax Vivad se Vishwas Scheme
The Central Board of Direct Taxes (CBDT) of India has released Circular No. 19 of 2024, offering additional guidance on the Direct Tax Vivad se Vishwas (DTVSV) Scheme 2024, which came into effect on 1 October 2024. This provides further guidance
Read MoreSwitzerland suspends MFN clause in tax treaty with India
The Swiss Federal Tax Administration declared the suspension of the Most Favoured Nation (MFN) clause under the 1994 Swiss-India tax treaty on 11 December 2024. That will be effective from 1 January 2025. Switzerland is rescinding its unilateral
Read MoreIndia expands scope of mandatory e-invoicing
The Indian tax administration announced that businesses with an annual turnover exceeding INR 10 crores will be required to report e-invoices to the Invoice Registration Portal (IRP) within 30 days of issuance. This new requirement will start
Read MoreIndia scraps windfall tax on fuel and crude oil domestic production, exports
India's Central Board of Indirect Tax and Customs (CBITC) has issued Notification 29/2024 on 2 December 2024, which repeals the previous directives related to implementing the Special Additional Excise Duty (windfall tax) on the domestic production
Read MoreIndia extends transfer pricing safe harbor rules to FY 2024-25, updates filing deadline for international transactions
India's Central Board of Direct Taxes (CBDT) has released Notification No. 124/2024 outlining the Income Tax (Tenth Amendment) Rules, 2024 on 29 November 2024. According to the amendment, the transfer pricing safe harbor rules under Rule 10TD of
Read MoreIndia, Nigeria hold talks on income tax treaty
According to a release, officials from India and Nigeria held discussions on bilateral relations from 17 to 18 November 2024, with a focus on finalising negotiations for an income tax treaty. During this period, Prime Minister Shri Narendra Modi
Read More