9911796707
TMI Blog2017 (9) TMI 1913X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is a subsidiary of Ariba Inc., USA and is engaged in providing Spend Management Solutions in the Indian market; Provision of online auction; Bid evaluation services; and Captive IT enabled support services to its associated enterprises (AEs). Certain international transactions were reported by the assessee in Form No. 3CEB. The Assessing Officer (AO) made reference to the Transfer Pricing Officer (TPO) for determining the arm's length price (ALP) of the international transactions. The dispute in this appeal is in only respect of international transaction of 'Provision of IT enabled services' with transacted value of Rs. 5,45,07,381/-. The assessee selected itself as the tested party and applied Transactional Net Margin Method (T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anies. Various services provided by the assessee within this segment can be categorized into five broader categories, viz., Legal support services, Pricing analysis, Financial analysis, Global sourcing support and IT support. Under the Legal support services, the assessee provides assistance with the drafting and reviewing of the legal contracts entered into by various Ariba group companies. This includes the sales contracts as well as the purchase contracts with various vendors. In providing such services, the assessee uses the pre-existing templates for contracts. Under Pricing support services, the assessee renders pre-sale support and post-sale support services. The sale team of the assessee specifies various parameters like details of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on, let us examine the comparability or otherwise of e-Clerx Services Ltd. This company was chosen by the TPO as comparable. The assessee objected to the same by contending that e-Clerx is functionally different. The TPO collected some information from the company u/s 133(6) of the Act. He did not accept the assessee's argument and finally included this company in the list of comparables. No relief was allowed in the first appeal. 6. Having heard both the sides and perused the relevant material on record, it can be seen from the Annual Report of this company, a copy of which has been placed in the paper book, that it paid Outsourcing charges to the tune of Rs. 8 crore and odd in addition to payment of Salary and wages etc. to its staff, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
