Business Standard

I-T department keeps tolerance range for transfer pricing unchanged

This implies that there will be no taxation relief for businesses dealing in related-party transactions

tax, ITAT, DISPUTE, ASSESSMENT
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The average monthly closing inventory of such goods must be 10 per cent or less of sales pertaining to such trading activities.

Dilasha Seth New Delhi
In a disappointment to businesses reeling from the Covid impact, the income tax department has kept the tolerance range for transfer pricing unchanged for 2019-20. 

This implies that there will be no taxation relief for businesses dealing in related-party transactions.

The CBDT on Monday re-notified the prevailing 1 per cent tolerance range for wholesale trading and 3 per cent range for all other transactions undertaken during the financial year ending March 31, 2020. 

Amit Agarwal, Partner Nangia & Co, said given the pandemic, it was expected the CBDT would take into account economic and business realities while notifying the tolerance range for transfer

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First Published: Oct 20 2020 | 1:51 AM IST

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