16 March 2009
Under Transfer pricing is there a provission where payent/remittance of foreign currency to sister concern is to be made within 6 months from the date of booking of Invoice for material supplied. Please let me know the relevant section under Transfer Pricing if its applicable. If not please let me know the duration for such payments/ remittances.
17 March 2009
There is no such provision in transfer pricing provisions of Income Tax Act. However, when you export any goods to any person outside India (may or may not be an associated enterprise), under Foreign Exchange Management Act RBI guidelines, you should receive remittance within 6 months. Similar provision may be there for export of your associated enterprise in their domestic laws, if they export material to you.
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