transfer pricing

dear sir,

 

In want to have clarification on transfer pricing. our head office in italy and we have susibdary independent comapny in banglaore and we are geting parts from italy and we manufature vavle etc in bangalaore and sell the same in india and export it outside .

i want to know following;;;;

whether trf princing applicalble to our company ?

is we have to exeucte transfer pricing agreement between bangalore company and italy compnay. please gudie me

 

 

 

Replies (1)
Hi Dinesh, Transfer Pricing is applicable in case of international transactions with the associated enterprises U/S 92. Though the ultimate sale is to outsiders, u need to adhere to the TP provisions of the IT Act. U need to execute an agreement for the same.

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