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What is specified domestic transactions ?

Varun Bhat (Student CA IPC / IPCC) (151 Points)

30 August 2016

Can anyone explain ,in simple words, the meaning of specified domestic transactions ?

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3 Replies

saurabh kumar (Tax Consultant) (348 Points)
Replied 30 August 2016

It relates to transfer pricing.It includes

Transaction for expenditure for which payment to be made to close relatives(as per sec 40A(2))

Inter unit/Inter business transfer not at market price(as per sec 80A(6))

Inter unit/Inter business transfer of goods/services meant for eligible business(infra development) not at market price(as per sec 80IA (8))

Transaction as per pre arrangement for excessive profit between assessee doing eligible business(Infra development) and his/her close relative(as per sec 80IA(10))

Any other inter unit/business transaction( related to any other sec under chapter VI-A or sec 10AA(newly established SEZ provisions) in the nature of above two type(sec80IA(8)/Sec80IA(10).

provided these are not international transactions and their agreegate value is more than Rs. 5 Cr in the previous year.

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BIPIN (CA ) (82 Points)
Replied 30 August 2016

Specific domestic transaction covered by Transafer Pricing Regulation
Specific Domestic Transaction term use for related party transaction which threshold limit specified U/s 92 of Income Tax Act, 1962. for more information you can refer Section 92 or 40A of Income tax act, 1962