24 November 2016
Title of your query and the query itself are completely different. In layman terms, a transfer pricing audit needs to be done in the following cases a) if an assessee has any "international transactions" i.e. a transaction affecting its profit/loss, asset/liability with an associate concern who is non-resident. b) if an assessee has "specified domestic transactions" exceeding Rs. 20 crore in a year. Specefied Domestic Transactions are those entered into between an assessee and related parties as defined u/s 40A(2)(a) or within its own business units, in case of deductions claimed under certain sections like 80-IA, 10A etc. The subject is complicated and cannot be answered easily but this is the best i could do.
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