Transfer Pricing
This query is : Resolved
14 August 2020
One of our clients is 100% subsidiary of a foreign company and provide services (export) only to the foreign parent company.
For this there is a contract where they raise an invoice on monthly basis to the parent company which has a markup of 15%.
Due to unforeseen business reasons our client will not be providing any services for till end of the year and hence no invoice will be raised.
From Transfer pricing Income tax point of view, will there be any challenges? Will Income Tax department, based on the contract consider any deemed income?
Thanks you in advance.
For this there is a contract where they raise an invoice on monthly basis to the parent company which has a markup of 15%.
Due to unforeseen business reasons our client will not be providing any services for till end of the year and hence no invoice will be raised.
From Transfer pricing Income tax point of view, will there be any challenges? Will Income Tax department, based on the contract consider any deemed income?
Thanks you in advance.
Message likes :
1 times
15 August 2020
No deemed income as no service is provided.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Liable to deduct tds and 44ADA
- Clarification regarding Import E-way bill transaction type // Regular or Bill from Dispatch From
- GST Reverse
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Sale of Equity shares for Purchase of Residential Property
- Subscription paid to foreign customer
- PRESUMTIVE TAXATION SCHEME
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- TDS PROCEDURE ON SALE OF IMMOVABLE PROPERTY BY NRI
- Refund of 20%pre-deposit paid for stay application
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
