Transfer pricing

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RAGI.K (Querist)
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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)
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11 April 2014 yes transfer pricing applicable in this case also.......

RAGI.K

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

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