02 May 2013
As we know the transfer pricing is applicable to specified domestic transactions w.e.f. FY 2013-14, my question is as under
It is first of all clarified that transfer pricing provisions are applicable to following person.
Suppose, one person has paid interest to his brother which is 9% p.a. but the same person has paid interest @ 18 % p.a. to outsiders.
Now, as far as I know, transfer pricing is applicable when excessive expense is debited and profit is reduced which is not there in this case. Further, for the brother of this person, interest is income and not an expense, so his income can also not be increased.
CAclubindia
