Domestic transfer pricing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2014 Dear Sir,
My client is giving a more than 5 crore rupee as a security deposit to a party specified in sec 40A(2)(b) for construction of a building and that building will be given on rent to that related party in future.right now rent is not fixed. So i want to know whether such payment of security deposit cover in specified domestic transaction

CA Arjun Dhanoliya

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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31 July 2014 yes as per sec 92BA it is attracted for specifired domestic transaction.

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2014 sir but this is only as security deposit as like interest free loan and not a payment for expenditure.
Whether domestic transfer pricing provision applicable on loan also

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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31 July 2014 if its not an exp and if its refundable then will not apply as it uses "expenditure"

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Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2014 Thanks sir i satisfied with your reply

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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31 July 2014 you are welcome friend...........................