ECONOMICS

Detailed explanation-1: -1.4 Objective of transfer pricing documentation (referred to as “the Documentation”) – The intent of transfer pricing regulations is to prevent taxpayer from entering into transaction with associated enterprises which is not at arm’s length.

Detailed explanation-2: -Non-compliance Failure to furnish Master File could attract a penalty of INR 500, 000.

Detailed explanation-3: -Mandatory TP documentation is required to be maintained by the Taxpayers where the aggregate value of international transactions with their Associated Entities exceeds INR 10 million (INR 200 million in case of domestic transactions).