11 October 2014
If the subsidiary company(it is Pvt ltd company, fully owned by foreign company(Parent company) rendered service in India of INR 10 Crore, subsequently the parent company raised bill to subsidiary company of INR 8 Crore i.e. 80% of revenue because the parent company also rendered service in India for the revenue of subsidiary company.
Whether Transfer Pricing will apply and what are the compliance to be done?
11 October 2014
well that would depend on the computation of arm's length pricing.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
11 October 2014
It is software Company, if we consider Cost plus method under arms length pricing , if the billing made by Parent Company to subsidiary company is Rs 8 Crore ,whether it has to declare 10 percent or 15 percent profit (average percent consider) on Rs 8 Crore???