Transfer pricing

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RAGI.K (Querist)

11 April 2014 Sir,

I want to know whether Transfer pricing applicable only to Expenses or not.
I sold goods to related party at a price below market price. I want to know whether transfer pricing applicable in my case.
From Guidelines i concludes,it applicable to sale also.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

11 April 2014 yes transfer pricing applicable in this case also.......

RAGI.K

RAGI.K (Querist)

11 April 2014 Thank you sir.
I have one doubt also. While reading ICAI guidelines for transfer pricing,In page no. 48 there is an example for ALP.
Scenario 1:TP is 7000 & ALP is 7433
- 3% variation-6790/-& + ve variation 7210.
Scenario 2:TP is 7200 & ALP is 7433
-3% variation 6984 & +ve 7416/-
Guidelines says Scnario 1 is not at Aarms lngth & scnario 2 is at arms lngth. Can you exp[lain it in simple words?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

11 April 2014 it means u compare 7433 with 7210 so variation is more then 3% on +ve side in scenerio.

same way for -ve variation 7416 is within 7433 so its within the range of ALP.

RAGI.K

RAGI.K (Querist)

11 April 2014 Sir,Transfer price apply to Domestic transaction(Sale) also?

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