Income Tax Rules, 2002

CHAPTER-VI

TRANSFER PRICING

From: 2023-11-01 - To: 0000-00-00 26. Cost plus method.- (1) The cost plus method determines whether the amount charged in a controlled transaction gives rise to an arm’s length result by reference to the cost plus markup realised in a comparable uncontrolled transaction. (2) The following steps shall apply in determining the arm’s length result under the cost plus method, namely:- (a) determine the costs incurred by the person in a controlled transaction; (b) to this amount is added a mark up (referred to as the “cost plus mark up” to make an…