Arms Length Transactions

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R.Jayakrishnan (Querist)
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18 August 2008 What is the definition of arms length transaction? Is physical transfer of money a must in an arms length transaction?

CA Nallathambi Srinivasan

CA Nallathambi Srinivasan (Expert)
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21 August 2008 Transfer Pricing - Arm's length price

92F (ii) arms length price means a price which is applied or proposed to be applied in a transaction between persons other than associated enterprises, in uncontrolled conditions;

R.Jayakrishnan

R.Jayakrishnan (Querist)
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21 August 2008 Is physical transfer of money is a must in an arms length transaction?

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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27 August 2008 No, it is not so. It relates to International Transaction whereby the taxability is worked out on the basis of Armed Length Price calculated in terms of provisions contained in section 92 to 92F.

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