**Summary:**
This notification, S.O. 3660(E), issued by the Ministry of Finance, Department of Revenue on October 19, 2020, pertains to the determination of the arm's length price in international transactions and specified domestic transactions under Section 92C of the Income-tax Act, 1961.
The Central Government notifies that if the variation between the arm's length price determined under Section 92C and the actual transaction price does not exceed:
* One percent of the actual transaction price for wholesale trading.
* Three percent of the actual transaction price in all other cases.
Then, the actual transaction price will be deemed the arm's length price for the assessment year 2020-2021.
For the purpose of this notification, "wholesale trading" is defined as the international transaction or specified domestic transaction of trading in goods, which satisfies the following criteria:
* The purchase cost of finished goods is eighty percent or more of the total cost pertaining to such trading activities.
* The average monthly closing inventory of such goods is ten percent or less of sales pertaining to such trading activities.
This notification is issued under the authority of the third proviso to subsection (2) of section 92C of the Income-tax Act, 1961, read with the proviso to sub-rule (7) of rule 10CA of the Income-tax Rules, 1962.
The notification number is 83/2020, and the file number is F. No. 5001/2014-APA-II. Ruchika Sharma, Under Secretary, is the contact person.
Key Entities Referenced
Ministry of Finance: The government ministry responsible for the economy of India.
Department of Revenue: A department within the Ministry of Finance responsible for tax collection and administration.
Income-tax Act, 1961: An Act of the Parliament of India that governs the income tax.
Income-tax Rules, 1962: The rules framed under the Income-tax Act, 1961, providing detailed procedures for income tax assessment and collection.
Section 92C: A section of the Income-tax Act, 1961, that deals with the determination of arm's length price in international transactions.
Rule 10CA: A rule of the Income-tax Rules, 1962, related to determining arm's length price.
Central Government: The executive authority of India.
New Delhi: The capital of India, where the notification was issued.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
xxxGIDHxxx
सी.जी.-डी.एलxx.x-GअI.D-E1x9x1x 02020-222545
CG-DL-E-19102020-222545
असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (ii)
PART II—Section 3—Sub-section (ii)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 3245] नई ददल्ली, सोमिार, अक्त बू र 19, 2020/आजि न 27, 1942
No. 3245] NEW DELHI, MONDAY, OCTOBER 19, 2020/ASVINA 27, 1942
जित्त मंत्रालय
(रािस्ट्ि जिभाग)
अजधसचू ना
नई ददल् ली, 19 अक् तूबर, 2020
[आयकर]
का.आ. 3660 (अ) .— केंद्रीय सरकार, आयकर जनयम, 1962 के जनयम 10गक के उपजनयम (1) के परंतु के साथ
पठित आयकर अजधजनयम 1961 (1961 का 43) की धारा 92ग की उपधारा (2) के तीसरे परंतु द्वारा प्रदत्त िजियों का
प्रयोग करत े हुए यह अजधसूजचत करती ह ै दक उक्त अजधजनयम की धारा 92ग के अधीन जनजित आर्म स स ल्े थ मल्ू य रर िह
मूल् य जिस पर अतं रास्र ीय लेन-दने या जिजनर्दद् ट घरेलू लेन-दने िास्ट् तजिक रूप स े हुआ ह,ै के बीच अंतर थोक व् यापार के
जलए परिती के एक प्रजतित अ् य सभी मामलों म ें तीन प्रजतित स े अजधक नहीं होता ह ै उस जस्ट्थजत म ें िह मल्ू य जिस पर
अंतरास्र ीय लने -दने या जिजनर्दद् ट घरेलू लने -दने िास्ट् तजिक रूप स े हुआ ह,ै को कर जनधासरण िर्स 2020-2021 के जलए
आर्म सस ल्े थ मूल् य समझा िाएगा।
स्ट्प ्ट ीकरण - इस अजधसूचना के प्रयोिन के जलए ‘थोक व् यापार’ का अथस माल के उस अतं रा्स र ीय लेन-देन या जिजनर्दद् ट
घरेलू लेन-देन से ह ैिो जनर्मन जलजखत िततों को पूरा करता ह,ै अथासत् -
(i) तैयार माल खरीद की लागत ऐसे व् यापार की गजतजिजधयों से संबंजधत मूल लागत का अस्ट्स ी प्रजतित या उसस े
अजधक हो; रर
4998 GI/2020
(1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(ii)]
(ii) ऐसे माल की रसत माजसक अंजतम माल सूची ऐसी व् यापाठरक गजतजिजधयों से संबंजधत जबरी ी का दस प्रजतित या
उससे कम हो।
[अजधसूचना स.ं 83/2020/फा. स.ं 500/1/2014-एपीए-II]
रुजचका िमास, अिर सजचि
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 19th October, 2020
[INCOME-TAX]
S.O. 3660 (E) .—In exercise of the powers conferred by the third proviso to sub-section (2) of section 92C
of the Income-tax Act, 1961 (43 of 1961)(hereinafter referred to as the „said Act‟), read with proviso to sub-rule (7) of
rule 10CA of the Income-tax Rules, 1962, the Central Government hereby notifies that where the variation between
the arm‟s length price determined under section 92C of the said Act and the price at which the international
transaction or specified domestic transaction has actually been undertaken does not exceed one per cent. of the latter
in respect of wholesale trading and three per cent. of the latter in all other cases, the price at which the international
transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm‟s length
price for assessment year 2020-2021.
Explanation.- For the purposes of this notification, “wholesale trading” means an international transaction or
specified domestic transaction of trading in goods, which fulfils the following conditions, namely:-
(i) purchase cost of finished goods is eighty per cent. or more of the total cost pertaining to such trading
activities; and
(ii) (ii) average monthly closing inventory of such goods is ten per cent. or less of sales pertaining to
such trading activities.
[Notification No. 83/2020/F. No. 500/1/2014-APA-II]
RUCHIKA SHARMA, Under Secy.
Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064
and Published by the Controller of Publications, Delhi-110054.