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ARTICLE · 30 JANUARY 2004

Transfer Pricing

Transfer pricing means the value or price at which transactions take place amongst related parties. Transfer prices are the prices at which an enterprise transfers physical goods and intangible property and provides services to Associated Enterprises.

IndiaWealth Management
Rajkumar Dubey
Rajkumar Dubey

Transfer pricing means the value or price at which transactions take place amongst related parties. Transfer prices are the prices at which an enterprise transfers physical goods and intangible property and provides services to Associated Enterprises.

POSITION IN INDIA

A need was felt for a detailed and separate regulation for administering transfer pricing with globalisation of Indian economy. Absence of such Regulations not only results in litigation but loss of revenue to the exchequer. In absence of Transfer Pricing Regulations, India was losing its legitimate share of revenue.

The sections and rules under the Income Tax Act, 1961 which deal with Transfer Pricing Regulations are sections 92 to 92F and rules 10A to 10E and sections 271(1)(c) , 271AA ,271BA and 271G.

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