ECONOMICS

Detailed explanation-1: -The expression “transfer pricing” includes the value attached to transfers of goods, services, and technology between related entities as well as value attached to transfers between unrelated parties with a common ownership or control. In India, law relating to transfer pricing is codified in the Income Tax Act, 1961.

Detailed explanation-2: -[4] The term “transfer pricing” refers to the value placed on the transfer of goods, services, and technology between connected companies as well as the value placed on the transfer of goods, services, and technology between unrelated parties that share common ownership or control. Globally, tax rates vary greatly.

Detailed explanation-3: -Documentation Requirement for Transfer Pricing the entity is a part along with the name, address, legal status and tax residence of each of the enterprises comprised in the group with whom specified domestic transactions have been entered into by the entity and ownership linkages among them.