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international ampere in Hindi international ampere meaning in Hindi

In present case there is no such clear agreement i.e. extends of AMP functions performed for the AE. Yum Restaurants – Matter was referred to revenue to determine existence of an international transaction between assessee and its AE involving AMP expenses. From the above definition it is apparent that a transaction is an arrangement, understanding or action in concert, whether formal or in writing or whether enforceable or not by legal proceedings. The case of the Revenue is that brand-building by the assessee for its foreign AE via incurring AMP expenses to the extent of more than what other independent entities proportionately incur for advertisement of their products in a similar situation, has resulted into a transaction. On the other hand, it has been argued by the Id.

ampe international

Further, I rely on the order of the Hon’ble ITAT in following case where the part of the AMP expenses reimbursement has been taken as basis for treating AMP functions as International Transactions. The facts are clearly distinguishable in present case, as specifically held by the Hon’ble ITAT that entire AMP functions is an actions in concert u/s 92F and therefore, an International Transactions. Such findings are not appearing in any of the judgments of Hon’ble ITAT, New Delhi in any case. In present case there is no such agreement clearly defining the AMP functions for AE & ceiling of AMP Expenses and approval of such AMP Expenses.


In our opinion, a perceived/notional indirect benefit to the AE, due to incurring of certain expenditure by an assessee in India, is not covered by the TP provisions. It is a fact that the payment under the head AMP expenditure was made to third parties and that those parties were located in India. At the outset, the ld. AR argued that establishment of an existence of an international transaction is sine qua non for any further step to be taken under Chapter X. It was argued since the first step itself has not been fulfilled, the question of quantification and the approach to be adopted for that purpose do not arise.

ampe international

In subsequent paragraphs, AS-26 records that expenditure on materials and services used or consumed, salary, wages and employment related costs, overheads, etc., contribute in generating internal intangible asset. Thus, it is possible to compute good- will or brand equity/value at a point of time but its future valuation would be perilous and an iffy exercise. International transaction cannot be identified or held to be existing simply because excess AMP expenditure has been incurred by the Indian entity.

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The dispute pertains to adequacy of compensation for incurring and performing marketing and ‘non-routine’ AMP expenses in India by the AE. The expenses incurred or the quantum of expenditure paid by the Indian assessee to third parties in India, for incurring the AMP expenses is not in dispute or under challenge. This is not a subject matter of arm’s length pricing or determination. The contention that AMP expenses are not international transactions has to be rejected. There seems to be an incongruity in the submission of the assessee on the said aspect for the simple reason that in most cases the assessed have submitted that the international transactions between them and the AE, resident abroad included the cost/value of the AMP expenses, which the assessee had incurred in India. In other words, when the assessed raise the aforesaid argument, they accept that the declared price of the international transaction included the said element or function of AMP expenses, for which they stand duly compensated in their margins or the arm’s length price as computed.

ampe international

They incur substantial AMP expenditure. If we apply the “bright line test” with reference to indicators mentioned in paragraph 17.4 as well as the ratio expounded by the majority judgment in L. G. Electronics India Pvt. Ltd.’s case in paragraph 17.6 to bifurcate and segregate the AMP expenses towards brand building and creation, the results would be startling and unacceptable. The same is the situation in case we apply the parameters and the “bright line test” in terms of paragraph 17.4 or as per the contention of the Revenue, i.e., AMP expenses incurred by a distributor who does not have any right in the intangible brand value and the product being marketed by him. This would be unrealistic and impracticable, if not delusive and misleading (aforesaid reputed Indian companies, it is patent, are not to be treated as comparables with the assessee, i.e., the tested parties in these appeals, for the latter are not the legal owners of the brand name/trade mark).

Pepsico India Holdings Pvt. Ltd. Vs ACIT (ITAT Delhi)

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  • At the outset, the ld.
  • It is conceded that the comparable cannot be limited to application of the BLT.
  • Impact of Chapter X of the Act cannot be controlled or curtailed by reference to the allowability of expenditure under Section 37 of the Act.
  • In 1946 the CIPM formally adopted a definition of the ampere based on the original EMU definition and redefined the ohm in terms of other base units.
  • It relates to income or receipts, and also expenses and interest but in a different context.

Sony Ericsson – Held that international transaction in respect of AMP with AE exists. A combined reading of the above provisions shows that this is clearly an international transaction. Tofler Company network is a powerful feature that allows you to explore and discover common directorships between companies.

AR that there is a lack of agreement or unison between the assessee and its foreign AE on the question of incurring AMP expenses for brand-building on behalf of the foreign entity. The contention has been made by the Id. AR that in the absence of any mutual agreement between the assessee and its foreign AE, it cannot result into a transaction. Ampere International Trading And Contracting Private Limited is an unlisted private company incorporated on 15 November, 2019. It is classified as a private limited company and is located in Thiruvananthapuram, Kerala.

There can be no scope for inferring any brand-building without there being any advertisement for the brand or logo of the foreign AE, either separately or with the products and name of the assessee. The AO/TPO can satisfy himself by verifying if the advertisement expenses are confined to advertising the products to be sold in India along with the assessee’s own name. If it is so, the matter ends. The AO will have to allow deduction for the entire AMP expenses whether or not these are proportionately higher.

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Out of the total expenditure of Rs.92.61 Cr., direct expenses debited on sales commission rebate are of Rs.78 Cr. It is submitted that agreement between JFL and its AE would have to be examined to ascertain the nature and extent of the obligation of brand promotion that is placed on JFL or the absence thereof. It is conceded that the comparable cannot be limited to application of the BLT. The Company’s status is Active. It’s a company limited by shares having an authorized capital of Rs 1.00 lakh and a paid-up capital of Rs 1.00 lakh as per MCA. USA Import data reveals the international trade transaction for USA import and overseas suppliers.

The submission on behalf of Yum India that for that purpose, the franchise marketing model of JFL is an ideal comparable would then require to be considered. The Court is of the view that after the decision in Sony Ericsson Mobile Communication India P. Ltd. , the adoption of the BLT for determining the existence of an international transaction involving AMP is expenses no longer legally permissible. In that scenario, there would be a need for a detailed examination of the operating Agreement between Yum India, Yum Marketing and the franchisees to ascertain if any part of the AMP expenses is for the purpose of creating marking intangibles for the AE of Yum India. It is only after an international transaction involving Yum India and its AE in relation to AMP expenses is shown to exist, that the further question of determining the ALP of such international transaction would arise.

The said provision relates to reasonability of the quantum. Similarly, Chapter X of the Act relates to arm’s length pricing adjustment. Chapter X is not concerned with disallowance of expenditure but relates to determination of arm’s length price/cost of an international transaction between the two AEs. It relates to income or receipts, and also expenses and interest but in a different context. Thus, Section 37 and Chapter X provisions pertain to different fields.

We also fail to understand the contention or argument that there is no international transaction, for the AMP expenses were incurred by the assessed in India. The question is not whether the assessed had incurred the AMP expenses in India. This is an undisputed position. The arm’s length determination pertains to adequate compensation to the Indian AE for incurring and performing the functions by the domestic AE.

Bacardi Ltd. contains Bacardi Ltd Global Marketing principles . In present case there is reimbursement of AMP expenses of Rs. 46,04,13,031/- by AE. [Kindly refer to table in Para 3 of TP order ]. In the order of Hon’ble ITAT in ITA No. 1197/Del/2016, similar reimbursement is mentioned at item no. 6 of the table in Para 8 contained in Page 15 of the TP order. This reimbursement is on account of AMP function performed by the assessee on behalf of AE, which is treated by the assessee as an International Transactions. ParticularsAmount Promotional Expenses448,136,356Trade Schemes243,520,326Rebates and discounts131,085,623Market Research/Consumer Insights21,544,164Sales Commission and commission paid to selling agent81,837,867Total926,124,33612.

Without prejudice, the TPO/DRP/AO erred in applying the Bright Line Method (“BLT”), under the guise of “Other Method”, for the purposes of computing the ALP of the alleged “international transaction” of AMP Expenses, incurred by the Appellant. Without prejudice, the TPO/DRP/AO erred in adopting the “Other Method”, without justifying the non-applicability of all the other prescribed methods under the Rules, for the purposes of computing the ALP of the alleged “international transaction” of AMP Expenses incurred by the Appellant. Without prejudice, the TPO/DRP/AO grossly erred in concluding that carrying out of AMP expenses was an “international transaction” for the purposes of section 92B of the Act based on assumptions, surmises and conjectures. Under Sections 92B to 92F, the pre-requisite for commencing the TP exercise is to show the existence of an international transaction. The next step is to determine the price of such transaction. The third step would be to determine the ALP by applying one of the five price discovery methods specified in Section 92C. The fourth step would be to compare the price of the transaction that is shown to exist with that of the ALP and make the TP adjustment by substituting the ALP for the contract price.

Without prejudice, the TPO/DRP/AO erred in arbitrarily construing the alleged “international transaction” of incurring AMP Expenses as a “service”, without bringing any evidence on record to establish such “arrangement” between the Appellant and its AE. Without prejudice, the TPO/DRP/AO erred in https://1investing.in/ concluding that AMP expenses incurred by the Appellant resulted in the enhanced brand value of the brands owned by the AE. The basic purpose of introducing the various provisions of chapter X, was to prevent tax evasion in the transactions undertaken between an Indian entity and its overseas AE.

Regarding the BLT, the Hon’ble High Court of Delhi in Sony Ericsson Mobile Communications India Pvt. Ltd. 374 ITR 118 held that BLT could not be applied for either determining the existence of an international transaction involving AMP expenses or for determining ALP of such transaction. Thus, the decision of the Special Bench of ITAT in LG Electronics relied upon by the revenue was rendered non-existent. 9.10.

The company Ampere International Trading And Contracting Private Limited is registered with RoC-Ernakulam and its primary location is Thiruvananthapuram in the country India. Define 1 ampere current in international system of units. Without prejudice, the TPO/DRP/AO failed to appreciate that AMP Expenses incurred by the Appellant formed a part of the excisable value of goods and hence, partook the character of “manufacturing expenses”, which could not Make a Buy List of Undervalued Stocks have been re-characterized. That the TPO/DRP/AO erred in not following the decision of this Hon’ble Tribunal in Appellant’s own case for immediately preceding years, wherein this Hon’ble Tribunal deleted identical Transfer Pricing Adjustment on account of AMP Expenses. We have gone through the issue and we are unable to accept with the contention of the revenue that the waiver of the royalty by the AE would not give any perpetual right to the assessee.

The fact that this expenditure was incurred and has to be allowed as deduction under Section 37 of the Act has not been challenged by the Revenue. Revenue in their written submission accepts and has rightly stated that the test of allowability of expenditure under Section 37 is whether the said expenditure is incurred wholly or exclusively for the business consideration. So long as the expenditure is for business consideration, the Assessing Officer cannot question the quantum or the wisdom of the assessee in incurring the expense. Issue of arm’s length price, per se does not arise, when deduction under Section 37 is claimed.

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