Article
Customs valuation and transfer pricing – different valuations for the same transaction? -
The similarity between customs valuation and transfer pricing methodologies is that the objective of both is to establish whether or not the price at which the transaction has been entered into has been influenced by the relationship between the parties entering into the transaction. However, there are many differences. In India, various Benches of ITAT have upheld the view that the methodology specified under the TP regulations and customs valuation are different and specific in their own way
Ratio Decidendi
- Deeming fiction under Section 47A(3) cannot be inducted to levy tax on capital gains – High Court of Bombay
- To be deemed as AEs, influence over the AE must be dominant leading to de facto control – ITAT, Chennai
- Draft assessment order need not be issued when no variation prejudicial to the assessee is contemplated – ITAT, Chennai
- Receipts pertaining to services not effectively connected with the PE can be taxed as FTS – ITAT, Delhi
