TPO accused of cherry-picking comparables
March 22, 2011
Sophie Ashley - TPW
The Mumbai Income Tax Tribunal (ITAT) has sent back the file of Teva India, dealing with pharmaceuticals, to the transfer pricing officer (TPO) to reassess whether Vimta Labs, a contract research and testing organisation with abnormally high profit, is comparable to a contract R&D provider.
TPOs have been using Vimta Labs to argue that contract service providers warrant a high cost plus mark-up.
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