An Indian Company is an importer and marketer of goods manufactured by a company in Srilanka.
One of the promoter-Directors of the Indian Company intends to join the board of the Srilankan Manufacturer Company.
One of the fellow CAs has opined that the Customs Act on transfer Pricing does not allow a producer in Srilanka and Marketing Company in India to have related promoters.
Can you please clarify and throw some light on this topic? Kindly suggest related readings of particular sections of the Act.
Also, if there is any such restriction, what can be an alternate route.
Regards,
Deepthi
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