Transfer pricing
This query is : Open
02 May 2013
As we know the transfer pricing is applicable to specified domestic transactions w.e.f. FY 2013-14, my question is as under
It is first of all clarified that transfer pricing provisions are applicable to following person.
Suppose, one person has paid interest to his brother which is 9% p.a. but the same person has paid interest @ 18 % p.a. to outsiders.
Now, as far as I know, transfer pricing is applicable when excessive expense is debited and profit is reduced which is not there in this case. Further, for the brother of this person, interest is income and not an expense, so his income can also not be increased.
Is it ok?
It is first of all clarified that transfer pricing provisions are applicable to following person.
Suppose, one person has paid interest to his brother which is 9% p.a. but the same person has paid interest @ 18 % p.a. to outsiders.
Now, as far as I know, transfer pricing is applicable when excessive expense is debited and profit is reduced which is not there in this case. Further, for the brother of this person, interest is income and not an expense, so his income can also not be increased.
Is it ok?
03 May 2013
Domestic TP is applicable if the amount exceeds Rs. 5 crore.
Anuj
femaquery@gmail.com
Anuj
femaquery@gmail.com
03 May 2013
Sir, I have already clarified in my question that TP provisions are applicable in this case, so please come to the main question.
Thanks
Thanks
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