URGENT!!! Please explain all questions in one statement possibly. Tell me practical aspect.
I have a query on Transfer Pricing-
If transfer pricing is to be applied for Pvt. Ltd. Software company-
What sort of possibilities are being taken into consideration?
Is a separate CA being appointed in this regard?
If turnover goes beyond 5 crores then is it applicable as oer I-T act, 1961?
As a matter of billability clause of Software projects, if we are keeping all agreements intact, then is it the only requirement or is it mandatory for Softex for STPI and as per I-T act to file the details?
How do we apply practically the one aspect out of seven in any company?
17 March 2009
It is applicable to all companies, who is doing international transaction with some associated enterprise. If however, the Indian company is exmept from paying Income Taxes, transfer pricing provisions is of no use. The companies engaged in international transaction with associated enterprises are required to maintain certain documents (Section 92D) and required to give a certificate that the pricing is based on arm lenth transaction principles.
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