Transfer pricing and related parties
This query is : Resolved
23 August 2014
An Indian Company is an importer and marketer of goods manufactured by a company in Srilanka.
One of the promoter-Directors of the Indian Company intends to join the board of the Srilankan Manufacturer Company.
One of the fellow CAs has opined that the Customs Act on transfer Pricing does not allow a producer in Srilanka and Marketing Company in India to have related promoters.
Can you please clarify and throw some light on this topic? Kindly suggest related readings of particular sections of the Act.
Also, if there is any such restriction, what can be an alternate route.
Regards,
Deepthi
One of the promoter-Directors of the Indian Company intends to join the board of the Srilankan Manufacturer Company.
One of the fellow CAs has opined that the Customs Act on transfer Pricing does not allow a producer in Srilanka and Marketing Company in India to have related promoters.
Can you please clarify and throw some light on this topic? Kindly suggest related readings of particular sections of the Act.
Also, if there is any such restriction, what can be an alternate route.
Regards,
Deepthi
14 September 2014
As per custom law if supplier and importer is related than you have to satisfy custom department that you relation not going to effect the price. If it is than you have to obtain permission from SVB (special valuation branch) cell that your relation is not effecting the price. you can import from Srilanka in every case.
ashok_saini@rediffmail.com
ashok_saini@rediffmail.com
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
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- 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
