banner_ad

Related party transaction

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
20 July 2015 On a plain reading of Section 188 of the companies act 2013, it is provided that

'Nothing in this sub section shall apply to any transaction entered into by the company in its normal course of business other than transactions which are not on an arm's length basis'

Here we assume that Intra group (associate-subsidiary or part of same group) transaction between companies are being done with proper TP markup and in ordinary course of business.

So if the Intra company transactions are done with transfer pricing markups, will it be considered as per 'arm's length basis' and therefore need not require the board approval as it is being done with TP ??
Profile Image

Pratik Shah

Profile Image

Pratik Shah (Expert)
20 July 2015 Yes..generally a company who is complying with TP rules, transacts on arm's length basis (you must be knowing TP comes only when there is transaction between Indian entity and foreign entity).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
14 May 2026
Financial Analyst - Remote Finance Expert

HiringBridge

Ahmedabad

CA

View Details
Company
14 May 2026
Senior Accounts Executive

Karan Gupta & Co.

New Delhi

Graduate (Any)

View Details