Transfer Pricing

When unrelated parties deal with each other the condition of their financial and commercial relations are ordinarily determine by the market forces, however, when related parties deal with each other their commercial and financial relationship will not get effected by the same forces. Accordingly the transaction between such related parties may take place at a price, which are different from market price.

Transfer pricing is a price at which related parties transfer goods and services to each other which may not be in accordance with the price charged by them from unrelated parties. Finance at was introduced in Income tax law, detailed transfer pricing regulations are applicable with effect from financial year ending March 31, 2002

» OVERVIEW OF TRANSFER PRICING IN INDIA

» AIM, OBJECTIVE AND EFFECT OF TRANSFER PRICING

» DEFINITION OF TRANSFER PRICING

» DEFINITION OF PERMANENT ESTABLISHMENT

» DEFINITION OF TRANSACTION

» DEFINITION OF INTERNATIONAL TRANSACTION

» TO WHICH TRANSACTION TRANSFER PRICING APPLIES

» WHAT DOES ASSOCIATED ENTERPRISE MEAN

» WHAT IS ARM LENGTH PRICE

» HOW TO COMPUTE ARM LENGTH PRICE

» WHAT INFO AND DOCUMENTS ARE REQUIRED BY PERSON WHOM TRANSFER PRICE APPLIES

» ON WHOM BURDEN OF PROOF LIES

» WHAT ARE THE PENALTIES UNDER TRANSFER PRICING LAW

» OECD PRINCIPLE REGARDING TRANSFER PRICING

» HOW TO FIND UNCONTROLLED COMPARABLES