Saturday 6 July 2013

IT Update

TRANSFER PRICING – CBDT WITHDRAWS CIRCULAR ON PROFIT SPLIT METHOD (PSM)

Circular no- 05/2013
Dated: 29th June 2013

CBDT had issued Circular No. 2  on 26th March 2013 regarding application of Profit Split Method.

The Circular appeared to give the impression that there was a hierarchy among the 6 methods listed in section 92C and that Profit Split Method (PSM) was the preferred method in the case involving unique intangible or in multiple interrelated international transactions.


Accordingly, CBDT withdraws Circular No 2 dated 26th March 2013 with immediate effect.

Regards

CA. Mona Singhal
Partner

Arpit Gupta & Associates
Chartered Accountants

701, Nirmal Tower,
26, Barakhamba Road,
Connaught Place, Delhi-110001

Mobile:- +91-9873082769 
Website: www.caaga.co.in

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