What are the practical difficulties in applying Arm's length price?
CS Professional · Advanced Tax Laws · PYQS · June 2021
What are the practical difficulties in applying Arm's length price?
Answer & Explanation:
The practical difficulties involved in application of Arm's length price are as follows: True comparison difficult in certain cases. Availability of data and reliability of available data. Absence of market price. Absence of comparable market price for "intangible" transactions. Administrative burden. Time lag.
Topics: Income Tax - Transfer Pricing
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