FOR INDIA'S BEST CA CS CMA VIDEO CLASSES CALL 9980100288 OR VISIT HERE
Take This Quiz & Predict Your Score in the coming CA CS or CMA Exam!
  • How important it is for you to pass the exam in this attempt?
  • What percentage of course you have finished well so far roughly?
  • How many hours you study in a day?
  • How many times you have revised the topics you have finished
  • Have you taken online or pen drive or live class from a renowned faculty?
  • What percentage of the classes you have watched?
  • Have you attempted mock tests or practice tests yet?
  • Are you planning to attempt mock tests conducted by external bodies- ICAI, ICSI, ICMAI or other institute?
  • How many tests you have taken?
  • Did you manage to finish the test papers on time?
  • Are you strictly following study material provided by the exam conducting authority such as ICAI/ICSI/ICMAI/Other Body?
  • How is your health in general?
  • How is your food habit?
  • Any interest in yoga or exercise or play sports regularly?
  • Planning to sleep well nights before the exams?
  • Planning to have light food and water before exams?

Domestic Transfer Pricing

Domestic Transfer Pricing

Journey towards Domestic TP in India

• Partially existent way before introduction of TP

Expenditure in respect of which payment has been made to related parties referred to in Section 40A(2)(b) can be disallowed if it is excessive having regard to the fair market value

Computation of tax holiday of eligible undertakings based on fair market value of goods / services, in case of transactions with other units in the same legal entity and based on ordinary profits in case of transactions with closely connected persons

• Supreme Court in the case of Glaxo Smith Kline Asia (P) Ltd. suggested in its order that TP regulations be made applicable where fair market value needs to be assigned to transactions between domestic related parties

• In response, the Government introduced “Domestic Transfer Pricing”

Functional analysis

The revenue/ profits generated by a company are attributable to

• Functions performed;

• Assets deployed and

• Risks assumed in its business operations

A functional analysis facilitates the characterization of related parties in respect of a specific transaction taking into account their functions, assets and risks and assists in establishing a degree of comparability with similar transactions in uncontrolled conditions

• FAR is a fact finding process covering inter alia: – Group Overview

– Company Overview and Product Profile

– Organisation Structure (Roles)

– Group Business Strategy

– Industry Overview

– Understanding of value-chain (FAR)

– Agreements

– Public Documents (Annual Report, Website)

 Domestic Transfer Pricing

Domestic Transfer Pricing

At CAKART www.cakart.in you will get everything that you need to be successful in your CA CS CMA exam – India’s best faculty video classes (online or in pen drive) most popular books of best authors (ebooks hard copies) best scanners and all exam related information and notifications.Visit www.cakart.in and chat with our counsellors any time. We are happy to help you make successful in your exams.

.

www.cakart.in.

Click Here to download FREE CA CS CMA Text Books.

 

 

 

 

Leave a comment

Your email address will not be published. Required fields are marked *