As 18 and sec 40 a (2)(b)

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09 September 2013 CAN SOMEONE EXPLAIN ME THE DIFFERENCE BETWEEN AS 18 AND SEC 40 a (2)(b) OF INCOME TAX

Hardik A. Mehta

Hardik A. Mehta (Expert)
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09 September 2013 AS 18 is an Accounting Standard which mentions the reporting requirements for the company which enters into any financial transactions with related party as defined in AS18.

Section 40A(2)(b) of the Income-tax Act, 1961 lists down the relationship with whom the assessee should enter into a financial transaction at arms length. Further please note that Finance Act 2012 has introduced Section 92BA which lists down the Specified Domestic Transactions that refer to Section 40A(2)(b)

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