Domestic transfer pricing

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2014 Dear Sir,
My client is giving a more than 5 crore rupee as a security deposit to a party specified in sec 40A(2)(b) for construction of a building and that building will be given on rent to that related party in future.right now rent is not fixed. So i want to know whether such payment of security deposit cover in specified domestic transaction

CA Arjun Dhanoliya

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

31 July 2014 yes as per sec 92BA it is attracted for specifired domestic transaction.

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2014 sir but this is only as security deposit as like interest free loan and not a payment for expenditure.
Whether domestic transfer pricing provision applicable on loan also

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

31 July 2014 if its not an exp and if its refundable then will not apply as it uses "expenditure"

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2014 Thanks sir i satisfied with your reply

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

31 July 2014 you are welcome friend...........................

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