Rule 82 - Exercise of option for determination of arm's length price for multiple years in a single proceeding

Exercise of option for determination of arm's length price for multiple years in a single proceeding. 82. (1) The option or options as per section 166(9)(a) may be exercised by an assessee for determination of arm's length price for multiple years in a single proceeding by furnishing Form No. 46. (2) The Form No. 46 in respect of international transactions or specified domestic transactions shall be furnished, within the period, beginning from the end of the third tax year and ending on the 30th June succeeding the third tax year. (3) Every Form No. 46 furnished under sub-rule (2) shall be accompanied by a certificate from the accountant, as defined in section 515(3)(b), in Form No. 47. (4) In a case where the international transactions or the specified domestic transactions fulfil the conditions prescribed in sub-rule (5), the Transfer Pricing Officer shall, within one month from the end of the month in which such option or options are exercised, pass an order, in writing, declaring whether the option or options exercised in Form No. 46 are valid or invalid. (5) The conditions referred to in sub-rule (4) include, among others: similarity of the transactions across the years covered; consistency of the transfer pricing methodology applied; material consistency of the functions performed, assets employed and risks assumed; no material change in the relevant business activities; and no material change in the contractual terms or in the associated enterprises involved — the complete set of prescribed conditions should be verified against the official rule text. (6) If the assessee objects to the order of the Transfer Pricing Officer under sub-rule (4) declaring the option to be invalid, it may file its objections with the Commissioner, to whom the Transfer Pricing Officer is subordinate, within fifteen days of receipt of the order. (7)–(10) set out the Commissioner's review procedure on such an objection (including an opportunity of hearing before a final order on validity) and the procedure and grounds for cancelling a previously validated option — including where information furnished is found inaccurate or a prescribed condition ceases to be fulfilled — subject in each case to a reasonable opportunity of being heard; the exact procedural wording of these sub-rules should be checked against the official consolidated text.