If a company is not meeting the Arm Length Price (International Transaction - with group companies), what is the penalty company needs to pay. can any one clarify
20 January 2013
Penalty provisions of Section 271AA prescribe Penalty of a sum equal to 2% of the value of each international transaction . This penalty may be levied in addition to Section 271 and 271BA penalties. .
26 July 2013
Yes I agree with the expert and they penalty does not relate to maintenance or non maintenance of records. It is levied on the violation of pricing norms which means it is for discouraging under invoicing.