Transfer pricing

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Dear All,

 

Bonus shares are issued to Non Resident Foreign Director by an Indian company.

Is this covered under the defination of International Transaction in transfer pricing?

 

Thanks in advance.

 

Regards,

Pari

Replies (3)

This does not fall within the purview of International TP. This will not be reported in Form 3CEB and the Documentation Report in Rule 10D. No need to ascertain the method of TP to find out Arm's Length Price.

Regards,

Thanks for the help Mam.

Further, what about production & licensing fees given to a AE...whether its covered as international transaction?

Yes, definitely it is an International Transaction as per section 92B of the IT Act 1961.


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