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
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- Regarding Applicability of Tax Audit u/s 44AB
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Putting a heading on received mail
- Foreign lottery ticket bought online from India: legality, tax and consequences
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Reprocessing of rectification order AY 2025-26
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
