Domestic transfer pricing

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Sunil Sharma (Querist)
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29 October 2012 Can i get a clarity on Domestic transfer pricing. Will the Limit of Rs. 5 crore be applicable partywise or will the same be applicable in aggregation.
Sunil

CA. Subhash Dangi

CA. Subhash Dangi (Expert)
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29 October 2012 The following transactions with the
aggregate value exceeding INR 50 million (US$ 1 million) are covered.

• Expenditure for which payment is made or to be made to specified domestic related parties.
• Transfer of goods or services to/from eligible business (tax holiday undertaking) from/to other business (non-tax holiday
undertaking).
• Business transactions between eligible business (tax holiday unit) and other person(s) producing more than ordinary profits owing to close connection.

Transactions between the specified persons and also between the inter-unit transactions of taxpayers would be covered. e.g.normal operating transactions, remuneration to directors, allocation of costs, etc.

Therefore domestic transfer pricing is on transaction wise.

Most of Real estate companies will hit by DTP policy.

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Ajay Mishra

Ajay Mishra (Expert)
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29 October 2012 Hi

Go to the following link, it may help you:

-- https://www.caclubindia.com/articles/domestic-transfer-pricing-13806.asp#.UIkIL8U3uz4

https://www.business-standard.com/india/news/pandoras-box-opensdomestic-transfer-pricing/468223/

Sunil Sharma

Sunil Sharma (Querist)
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29 October 2012 Dear ajay
I am not able to access the link

Sunil Sharma

Sunil Sharma (Querist)
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29 October 2012 So say if the company has following transactions will the Domestic Transfer Pricing be applicable:
1. Directors Remuneration Rs. 1 crore to each of its 6 director
2. Purchase from a Holding Company Rs. 4 crore.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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10 November 2013 Mr. Sunil Sharma,

The answer is YES

kantijain

kantijain (Expert)
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12 November 2013 CA.Anuj Gupta, it will be great if u can elaborate on your reply as Holding co is a separate legal entity & 6 directors are also drawing different remunerations.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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15 November 2013 Kantijain,

Your query is not clear.

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