CBDT Keeps tolerance level for transfer pricing unchanged for AY 2015-16

CBDT vide notification no.86/2015/F.No.500/1/2014-APA-II, notified  the tolerance limits for international transactions / specified domestic transaction entered into by the assessee’s with associated enterprises as under:

  1. Wholesale Trading : 1%
  2. Others cases : 3%
transfer_pricing

For the purpose of this notification: Wholesale trading means an international transaction or specified domestic transaction of trading in goods which fulfills the following conditions:

  1. purchase cost of finished goods is 80% or more of the total cost pertaining to such trading activities;
  2. average monthly closing inventory of such goods is 10% or less of sales pertaining to such trading activities

The notification can be downloaded by clicking –> govt-notifies-old-tolerance-limit-of-1-and-3-under-new-tp-rule

CDBT Clarifies Extended Due date is also applicable for e-filing of Tax Audits

CBDT vide F.No.225/207/2015/ITA.II clarified that the due date for obtaining and E-filing of audit reports under various provisions of the Income-tax Act for assessees covered under clause(a) of Explanation 2 sub-section (1) of section 139(1) also stands extended to 31 October 2015.

Tax-Burden

Clarification can be downloaded by clicking –> extended-due-date-of-oct-31-2015-is-also-applicable-for-e-filing-of-audit-reports-cbdt-clarifies