KPO Service Provider Is Not Comparable To ITES Service Provider For Purpose Of Benchmarking International Transactions: Delhi HC

The Delhi High Court has ruled that Knowledge Process Outsourcing (KPO) service providers are not comparable to Information Technology Enabled Services (ITES) providers for the purpose of benchmarking international transactions. The case involved a dispute over the appropriate comparables for determining arm’s length pricing in international transactions. The Court’s decision highlights that KPO and ITES services differ significantly in terms of complexity and value addition, thereby requiring distinct benchmarks for accurate pricing assessments.