Transfer pricing

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Rawther Riswan (Querist)
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28 May 2015
Sir/Madam,

A company in dubai sold goods to an Indian Company for Rs. 10 Crore, The Indian Company sold the goods to other indian company at a same price of Rs. 10 Crore without any profit margin in favour of dubai Company.

i. Will transfer pricing applicable to this?

ii. Also will there be any changes in applicability of Transfer pricing in case of being an related party or not being an related party?

Kindly help? It would be thankful if any article provided on accounting of transfer pricing?

Regards,
M. Rawther Riswan

Amol S Joglekar

Amol S Joglekar (Expert)
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28 May 2015 http://www.incometaxindia.gov.in/Pages/international-taxation/transfer-pricing.aspx

you can follow the same for a better understanding of transfer pricing. It is Govt of India's income tax department's site.

Basically, as is evident from the sections of Income Tax Act, the provisions are applicable for Associated enterprises and Permanent Establishments.

In your case, prima facie, there appears no connection as such.