Amendment of section 80A.
23. In section 80A of the Income-tax Act, in sub-section (6), in the Explanation, after clause (ii), the following clause shall be inserted with effect from the 1st day of April, 2013, namely:—
“(iii) in relation to any goods or services sold, supplied or acquired means the arm’s length price as defined in clause (ii) of section 92F of such goods or services, if it is a specified domestic transaction referred to in section 92BA.”.
Notes on Clauses:
Clause 23 of the Bill seeks to amend section 80A of the Income-tax Act relating to deduction to be made in computing total income.
The existing provision of the Explanation to sub-section (6) of the aforesaid section 80A provides the definition of expression “market value” in relation to any goods or services sold or supplied and in relation to goods or services acquired.
It is proposed to amend the aforesaid Explanation so as to provide that “market value” in relation to any goods or services sold, supplied or acquired, in case of a transaction being a domestic transaction referred to in section 92BA shall be the arm’s length price as defined in clause (ii) of section 92F.
This amendment will take effect from 1st April, 2013 and will, accordingly, apply in relation to assessment year 2013-2014 and subsequent assessment years.
