COST ACCOUNTING
TRANSFER PRICING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Article 18 Paragraph (3) of the PPh Law and Article 2 paragraph (1) of the VAT Law
|
|
|
Article 18 Paragraph (3) of the PPH Law and Per 43/PJ/2010 stdtd Per 32/PJ/2011
|
|
|
Article 18 Paragraph (3) of the Income Tax Law; Article 2 paragraph (1) of the VAT Law; and Per 22/PJ/2013
|
|
|
Article 18 Paragraph (3) of the Income Tax Law; Article 2 paragraph (2) of the VAT Law; and PMK 213 of 2016
|
Detailed explanation-1: -Section 92(3) provides that the application of the transfer pricing provisions should not result in reducing the income computed on the basis of books of account.
Detailed explanation-2: -Transfer Pricing was introduced through inserting Section(s) 92A-F and relevant Rule(s) 10A-E of the Income Tax Rules 1962. It ensures that the transaction between ‘related’ parties is at a price that would be comparable if the transaction was occurring between unrelated parties.
Detailed explanation-3: -The transfer pricing documentation shall be required if the value of international transactions exceeds INR 1 crore and specified domestic transactions exceed INR 20 crore in a financial year.
Detailed explanation-4: -In view of Rule 10D every person entering into specified domestic transactions shall keep and maintain documents relating to such transactions for a period of 8 years from the end of the relevant assessment year.