No TP adjustment required under TNMM when company had charged higher/lower amount of depreciation than its comparables

EXL Service.com (India) (P) Ltd. v. Asst. CIT [2014] 52 taxmann.com 352 (Delhi Tribunal)

No transfer pricing adjustment could be allowed simply for the reason that one company had charged higher amount of depreciation vis-à-vis its comparable companies. However, the position might be different when there was a difference in the rates of depreciation charged by two companies on similar category of assets. It was this difference in the amounts of depreciation, which calls for bringing both the companies at par.

Advertisements

One thought on “No TP adjustment required under TNMM when company had charged higher/lower amount of depreciation than its comparables

  1. Great Information!!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s