Hi All,
We have a Seller company and Buyer company having common directors.Both the company situates in India. The transaction value exceeds the threshold limit of 5 Crores.In the Seller company only one Director has more than 20% stake however the same director is just a shareholder with 5% stake in the Buying company .Now my questin Is it a specified transaction for Domestic Transfer Pricing ?? Does the Domestic Transfer Pricing provision here applies here ???.
All directors of a company where any director of such company has substantial interest in the reporting enterprise and their relatives are included.
A company of which a director has a substantial interest in the business or profession of the the assessee, or any director of such company or any relative of such director - are related parties.
In view of the above the parties are related. However Reporting is only required by the company making payments as Section 40A(2) does not hit the income side - Domestic TO Applicable. For further quesries mail at ankitagarwal130986 @ gmail.com
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