jamali.k (Chartered Accountant) (43 Points)
07 September 2016ASSESSEE IS A INDIVIDUAL AND HE WAS A DIRECTOR TO PVT LTD COMPANY AND HAVING THE VOTING RIGHTS 47% IN THAT COMPANY.
INDIVIDUAL ASSESSEE CARRYING BUSINESS AND ALL HIS BUSINESS PUCHASES ARE MADE FROM THE ABOVE PVT LTD COMPANY AND THE PURCHASES ARE AROUND THE 11 CRORES DURING THE FINANCIAL YEAR 2015-16.
MY QUESTION IS WHETHER SPECIFIED DOMESTIC TRANSACTIONS UNDER TRANSFER PRICING RULES APPLY TO SUCH INDIVIDUAL OR COMPANY?
saurabh kumar
(Tax Consultant)
(348 Points)
Replied 07 September 2016
Transfer pricing rules will apply to such individual for expenditure paid for purchase of goods to the company as per section 40 A(2) and if the transation has been done below the market price then it will be applied to the company as well since it will be covered as transaction under sec 80 A(6).Here the transaction is above the threshold limit Rs. 5 Cr.
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