09 August 2012
Suppose Company A Lrd (Domestic Company) invesated money in equity shares of its Subsidiary Company B Ltd (Non domestic company) i.e. associate enterprise. Whether the said transaction is necessary to be reported in Transfer price report in form 3CEB u/s 92E of Income Tax Act, 1961. Please advise.
09 August 2012
Yes it should be reported in Annexure 13 –Any Other Transactions
‒Transactions pertaining to sale / buyback of shares-In case the company is listed on a stock exchange the price on the stock exchange is CUP. If otherwise, the valuation based on independent chartered accountant can be used. ‒Transactions related to initial infusion of capital, receipt or payment .
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