Relief to Burberry: Delhi HC upholds RPM Method for Distributors Reselling AE Products Without Modification

The Delhi High Court has provided relief to Burberry, ruling that the Resale Price Method (RPM) for determining the transfer pricing of its products sold by distributors is valid. Burberry had been in a dispute over the method used to price goods sold by its distributors, with the tax authorities challenging the RPM approach. However, the court upheld the decision, stating that the RPM was a consistent and appropriate method for Burberry’s business model, where products were sold without significant modification. This judgment strengthens the understanding that companies engaged in international trade can use RPM as a valid method for transfer pricing, especially in cases where modifications to products are minimal.