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Transfer pricing

jyoti rani (secnderabad) (1852 Points)

30 November 2012

Hello Freinds,

I am hereby attach the PDF format of FORM 3CEB for filing purpose of the transfer pricing return,

As we know that 30th nov. is the last date of filing the return so i here by attached the form 3CEB in PDF format.

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9 Replies

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 30 November 2012

Thanks Jyoti Rani for sharing.

I wish to know if dividend paid by indian subsidiary company to its foreign holding company is to be reported in Form 3CEB.

Also can you opine what should be the TP method to determine Arm's length price of international transactions where there are only international transactions with foreign related parties (AE) and there is a loss. Should it be TNMM or CUP. There are no international transactions with unrelated parties.

Regards,

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Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 05 December 2012

Any responses...

Regards,

jyoti rani (secnderabad) (1852 Points)
Replied 06 December 2012

hiiiiiiiii there is thirteen conditions which is mentined sec 92A, for the applicability of transfer pricing.

if any indian subsidary company paid dividend to its foreign holding company.......there is no need in mention inthe report Form 3ECB ,

As it is not covered in that 13 condition which is mentioned in the above said section.

jyoti rani (secnderabad) (1852 Points)
Replied 06 December 2012

Sorry its form 3CEB

jyoti rani (secnderabad) (1852 Points)
Replied 06 December 2012

If there is no transaction with unrelated parties ,

then TNMM method should apply for the calculation of Arm's length Price.

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Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 07 December 2012

Jyoti rani

Thanks for your valuable responses. In this forum discussion on such issues are very limited.

But can TNMM be applied if there is a loss. Our CA who certified 3CEB is of the opinion that TNMM cannot be applied if there is a loss.

Regards,

jyoti rani (secnderabad) (1852 Points)
Replied 10 December 2012

ya if there is loss the no TNMM is not apply,

Step 1- first you to check whether there is associated and related parties is there or not.

step2- under which condition transfer pricing is applicable for that company.

step3. If it is applied how they are valued the pricing, means on what basis.

step4- which method is suitable for that company.

step5. after calculating Arms Length priceif there is loss, no need of considereing. it is applicable only in case of profit.

Dipjyoti Majumdar (CA in service & CS. dipmaj@ rediffmail.com ) (3468 Points)
Replied 11 December 2012

Jyoti Rani

So, if TNMM cannot be applied then which method to be used. Because, you see, CUP cannot be used as there are no comparable sales prices with unrelated parties in the year.

TNMM is a modified version of Cost Plus method-- so if TNMM cannot be used , Cost plus is also ruled out.

Our nature of service is such that Resale price method is not applicable also because there is no distribution of services.

Look forward to your valued views, please.

Regards,