Transfer Pricing

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CHANDRASEKHAR REDDY (Querist)

10 November 2010 Hi, We are into Consulting & engineering business is Transfer pricing is applicable? if applicable what is procedure to file? and required documents details? please anyone help me

Tilak Agrawal

Tilak Agrawal (Expert)

10 November 2010 Dear Chandrasekhar

Tranfer Pricing is applicable in case of International Transaction with Associated Enterprise and nature of business carried on does not affect applicability of Tranfer Pricing Provisions.

You Should Refer Section 92C of IT Act for further Details.

For Documents to be Maintained u should refer Income Tax Rules.

CHANDRASEKHAR REDDY

CHANDRASEKHAR REDDY (Querist)

10 November 2010 We are doing design & infrastructure work under contract at South Africa but rules they have mentioned (Transfer price is, thus, a price which represents the value of good; or services between independently operating units of an organisation. But, the expression “transfer pricing” generally refers to prices of transactions between associated enterprises which may take place under conditions differing from those taking place between independent enterprises.)
is this applicable

Tilak Agrawal

Tilak Agrawal (Expert)

10 November 2010 Dear Chandrashekhar

Tranfer Pricing Provisions are applicable when u have International Transaction with Associated Enterprise.

Tranfer Pricing provision aims to make sure that transactions are priced between AE (Associated Enterprises) same as it would have been priced had they were not AE i.e Transaction between independent Enterprises Because it is assumed that association between enterprises would have affected prices.

In your case if you have transaction with any of your enterprise abroad then TP Provisions are applicable.

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