30 November 2009
MY CLIENT IS NRI. HE IS IN ONLINE BUSINESS OF BOOKS AND CD.HIS INDIAN RESIDENT BROTHER EXCLUSIVELY WORKING FOR HIM.HIS INDIAN RESINDENT BROTHER RESOLVING QURIES OF NRI ,AND SOMETIME PURCHASING THE BOOKS ON BEHALF MY CLIENT THROUGH INTERENT FROM INDIA(LIKE BPO SERVICES). MY CLIENT PAID HIM SOME RESONABLE CONSIDERATION FOR HIS SERVICES. WILL THIS TRANSACTION COVERED UNDER TRANSFER PRICING ? IF YES, WHAT WILL BE THE TAX LIABILITY OF MY CLIENT AND HIS INDIAN RESINDENT BROTHER ?, AND WHAT RATE WILL BE APPLICABLE ?