Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (7) TMI 1110 - ITAT BANGALORE

2015 (7) TMI 1110 - ITAT BANGALORE - TMI - Intra group services rendered by the AE to the assessee - whether the activities are at armís length? - mark-up charged by the AE on the cost - Held that:- The CIT(A) has already disallowed the mark-up and determined the ALP at cost of the group services which has been contributed by the assessee. We further note the CIT(A) has noted that the fact for assessment year 2008-09, the payment of intra group services was accepted y the TPO at armís length und .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e AEs at a mark-up of 5.8%. As it is evident from the facts and submissions, the payment is clearly for the Ďcost contributioní and therefore, there should not be any mark-up on such allocations made by the Parent Company. Hence, for the same reason, the mark-up of 5.8% paid towards Ďcost contributioní is not at armís length and the ALP for the markup is treated as nil. No error or illegality in the order of the CIT(A) qua this issue - Decided against revenue - IT(TP)A No.446(B)/2012 - Dated:- 2 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as it relates t the following grounds is opposed to law and facts of the case. 2. The ld.CIT(A) erred in holding that intra group services are at arm s length as the assessee failed to establish that services were rendered by AE for the direct benefit of the assessee. 3. The only issue arises from the grounds raised by the revenue is whether the intra group services rendered by the AE to the assessee are at arm s length. The assessee entered into various international tran .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

parables selected by the TPO at 10.11%. The TPO accepted TNMM as most appropriate method for determination of ALP in respect to all other international transactions except the payment for intra group services. The assessee is making the payment for intra group services with a markup of 5.8% whereas the TPO has determined the ALP in respect of the group services at nil by holding that the intra group services did not result increase any profit margin. 4. On appeal, the CIT( .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ant material on record. The assessee has made the payment towards the cost contribution on account of intra group services. The AO as well as the TPO has not disputed the actual cost of services which is contributed by the assessee, though the AE of the assessee has allocated the cost with the mark-up of 5.8%. The TPO has determined the ALP of group services at nil on the ground that the services has not resulted in any increase in the profit margin of the assessee. It is pertinent to .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version