Transfer pricing for companies in sez's

DDDDDD (.) (176 Points)

16 February 2012  

Whether the provisions of transfer pricing is applicable to companies incorporated in SEZ's?

One of my client is incorporated in SEZ. As per there agreement with their parent co (incorporated in london). They sholud bill the parent co at cost plus 25%. But as a normal practice they a billing their parent company only at cost plus 16%

Please tell me whether TP provisions will get attracted in this case.