Notification of the variation range for transfer pricing purposes

The Indian authorities have issued Notification No. 31/2012 dated 17 August 2012 whereby when the variation between the arm's length price determined under section 92C of the Income Tax Act 1961 (i.e. the transfer pricing provisions) and the price at which the international transaction has actually been undertaken does not exceed 5%, the authorities will accept the international transaction price to be the arm's length. This would be applicable for the financial year 2011/12 (i.e. assessme…