Engineering Instruments Ltd. is a 100% Indian subsidiary of a USA company. The parent company sells one of its products to the Indian subsidiary at a price of $200 per unit. The same product is sold to unrelated buyers i

CS Executive · Tax Laws and Practice · PYQS · December 2018
Engineering Instruments Ltd. is a 100% Indian subsidiary of a USA company. The parent company sells one of its products to the Indian subsidiary at a price of $200 per unit. The same product is sold to unrelated buyers in India at a price of $250 per unit. The Arm Length Price (ALP) of the product so sold to the Indian subsidiary by the parent company shall be taken in the case when there is no functional differences in both the prices at
(A) $50 per unit
(B) $250 per unit
(C) $200 per unit
(D) $450 per unit

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Income Tax Act, 1961

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