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Q. > Please Help: Transfer pricing
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120 views • Question added Feb 23, 2015 • Income Tax • By CA Ashish Aggarwal , CA , Chandigarh


Their is a threshold limit in case of domestic transaction i.e 5 crores. Whether this limit should be considered on annual basis or total eg one party opening balance RS 3.5 crores and during the year the transaction is of Rs 2.5 Crores and the outstanding balance in that party account exceeds Rs 5 crore. whether this case falls in the ambit of transfer pricing or not ??

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Parrkash Daga

25-Feb-2015 , 11:19:01 am

This case is not fall in the ambit of Transfer Pricing. Aggregate purchase or revenue expenditure from Specified Persons is more than 5 Cr during the year than case come to Transfer Price. Aggregate Purchase or Revenue Expenditure does not include OPENING BALANCE.

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