Applicability of Transfer Pricing provision

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Bimal Thacker (Querist)
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09 February 2011 M/S “M” Pvt. Ltd Co. having three directors Mr. A, Mr. B &C (Indian resident) wants to appoint Mr. D (non resident) as director. Mr. D is employee of M/S “L” of Switzerland.

M/S M Pvt. ltd is in the business of repairs and maintenance and supply of parts of Machinery. M/S M Pvt. Ltd purchases more then 90 percent of parts from M/S L of Switzerland. M/S M Pvt. Ltd does majority of repairs works in India and supply of parts is of Machinery supply by L to Indian markets. Some times M/S M Pvt. Ltd billed to M/S L for repair worked done on behalf of M/S L (machinery under warranty period).

Whether the transaction between M/S M Pvt. Ltd and M/S L of Switzerland is international transaction under chapter X i.e. Section 92 etc before appointment of Mr. D or after appointment of Mr. D? What care should be taken?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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13 February 2011 Your case is already covered in sec.92A(2)(h) and there is no additional TP requirement if Mr. D is appointed as Director.

Anuj
9810106211

Bimal Thacker

Bimal Thacker (Querist)
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14 February 2011 Thanks Mr. Anuj Gupta, But I thinks Section 92A(2)(h) Covers Materials & Consumables for Manufacture or processing of goods or articles ? M/S M Pvt. Ltd is not manufacturer or processor. Whether any other section - subsection will hit?

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