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Transfer Pricing in India are applicable to Specified Domestic Transactions with effect from 1st April 2012. Specified Domestic Transactions includes transactions entered into between domestic related parties, or by an undertaking (enjoying benefits under chapter VI-A or Section 10AA of the Income Tax Act) with other units or undertakings of the same entity which exceeds the threshold limits of INR 5 crores.
As per Section 92BA of the Income Tax Act, following transactions are covered under specified domestic transactions:
- Any payment made or to be made by a company to person referred to in Section 40A(2)(b) of the Income Tax Act. It also include payments made to directors or persons having substantial interest in the company (i.e. beneficial interest of not less than 20 percent)
- Transactions referred to in Section 80IA(8) of the Income Tax Act
- Transactions referred to in Section 80IA(10) of the Income Tax Act
- Transactions referred to in Chapter VI-A or section 10AA of the Income Tax Act
- Any other transactions as may be prescribed.
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| Tag : Specified Domestic Transactions , transfer pricing in india , transfer pricing documentation , transfer pricing assessment , transfer pricing study , transfer pricing audit , transfer pricing agreement |
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