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Transfer pricing

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13 September 2012 A foreign company having its registered office in Singapore made investment in an Indian Company and acquire 26% Equity in Indian Company.
Further foreign company form a subsidiary company in India and made a secured loan to that Indian Company.
Indian Company paid Interest on this loan to Subsidiary Company of foreign company.
Whether there is any implication of Transfer Pricing Regulation on this transaction.
Pls help!!!

14 September 2012 Yes. as it acquired 26% holding. Interest should be at arms length Price.



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