The Central Government hereby notifies that where the variation between the arm’s length price determined under section 92C and the price at which the international transaction and specified domestic transaction has actually been undertaken does not exceed 1% of the latter in respect of wholesale trading and 3% of the latter in all other cases, the price at which the international transaction or specified domestic transactions has actually been undertaken shall be deemed to be the arm’s length price for the assessment year 2014-15.
“Wholesale Trading” means an international transaction or specified domestic transaction of trading in goods, which fulfills the following conditions, namely:-
1. purchase cost of finished goods is eighty percent or more of the total cost pertaining to such trading activities; and
2. average monthly closing inventory of such goods is ten percent or less of sales pertaining to such trading activities.
To view the full notification, please follow the link.