Transfer pricing issues.

This query is : Resolved

Adolf Pacheco (Querist)
Follow

16 March 2009 Under Transfer pricing is there a provission where payent/remittance of foreign currency to sister concern is to be made within 6 months from the date of booking of Invoice for material supplied.
Please let me know the relevant section under Transfer Pricing if its applicable. If not please let me know the duration for such payments/ remittances.

Thanking you in advance.

With warm Regards,

Adolf Pacheco.

Rajesh Kumar

Rajesh Kumar (Expert)
Follow

17 March 2009 There is no such provision in transfer pricing provisions of Income Tax Act. However, when you export any goods to any person outside India (may or may not be an associated enterprise), under Foreign Exchange Management Act RBI guidelines, you should receive remittance within 6 months. Similar provision may be there for export of your associated enterprise in their domestic laws, if they export material to you.

Adolf Pacheco

Adolf Pacheco (Querist)
Follow

17 March 2009 Thank you verry much for the prompt reply and it has solved my query.

Upgrade to CAclubindia Pro. Subscribe Now!