Ch 3 · Transfer Pricing (Sec 92 to 92F)

5 concept points · 3 formulas · 4 exam-critical points.

📘 Core concepts

• 1International transaction between associated enterprises must be at arm's length price (ALP).
• 2Methods: CUP, RPM, CPM, PSM, TNMM, Other Method (Rule 10AB).
• 3Specified Domestic Transactions (SDT) covered if exceeding ₹20 cr threshold.
• 4TP Documentation: Master File (10DA), Local File, CbC Reporting (10DB) — three-tier.
• 5Penalty: 2% of value (failure to maintain docs), 50%-200% of tax (concealment).