INCOME-TAX NOTIFICATION NO.83

INCOME-TAX NOTIFICATION NO.83

MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 19th October, 2020
[INCOME-TAX]

S.O. 3660 (E) .—In exercise of the powers conferred by the third proviso to sub-section (2) of section 92C
of the Income-tax Act, 1961 (43 of 1961)(hereinafter referred to as the „said Act‟), read with proviso to sub-rule (7) of
rule 10CA of the Income-tax Rules, 1962, the Central Government hereby notifies that where the variation between
the arm‟s length price determined under section 92C of the said Act and the price at which the international
transaction or specified domestic transaction has actually been undertaken does not exceed one per cent. of the latter
in respect of wholesale trading and three per cent. of the latter in all other cases, the price at which the international
transaction or specified domestic transaction has actually been undertaken shall be deemed to be the arm‟s length
price for assessment year 2020-2021.


Explanation.- For the purposes of this notification, “wholesale trading” means an international transaction or
specified domestic transaction of trading in goods, which fulfils the following conditions, namely:-
(i) purchase cost of finished goods is eighty per cent. or more of the total cost pertaining to such trading
activities; and
(ii) (ii) average monthly closing inventory of such goods is ten per cent. or less of sales pertaining to
such trading activities.

[Notification No. 83/2020/F. No. 500/1/2014-APA-II]
RUCHIKA SHARMA, Under Secy


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