Hello,
Specified domestic transactions cover any expenditure in respect of which payment has been made or is to be made to a person referred to in Section 40A(2)(b). Now my query is whether only expenditure is to be looked at irrespective of the income from the persons covered in section 40A(2)(b)?
Or whether net of income and expenditure is to be considered for the SDT?
Kindly advice.
Dear Bhavini,
As My Knoweldge only, Expenditure is only taken into account for Domestic transactions irrespective of income from persons fot transfer pricing
Both income and Expenditure would have been considered if it would been involved an foreign party.
regards
BHAVIN N SHETH
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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