Assessments from financial year 2012-13 would require application of transfer pricing rules for domestic transactions with related parties. Following is the overview of the latest developments in Domestic Transfer Pricing regulations.
Specified Domestic Transactions
Section 92BA provides the meaning of Specified Domestic Transactions to which various other provisions relating to transfer pricing will apply. These include the following:
a) 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);
b) Any transaction referred to in section 80A;
c) Any transfer of goods or services referred to in section 80IA(8);
d) Any business transacted between the assessee and other person as referred to in section 80- IA(10);
e) Any transaction, referred to in any other section under Chapter VI-A or section 10AA or the provisions of sub-section (8) or sub-section (10) of section 80-IA are applicable; or f)Any other transaction as may be prescribed,
where the aggregate of such transaction entered into by the assessee in the previous year exceeds a sum of two hundred million Indian rupees.
We provide unprecedented support to clients having dealings in foreign currency and help them to comply with provisions with respect to specified domestic transactions.