Typical case of transfer pricing
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Title: Typical case of transfer pricing

Essay Details:

Subject: Business
Author: Margaret T
Date: April 9, 2016
Grade: A
Length: 5 / 1350

Essay text:

This is because capital gains arising from such a transfer would be classified as income arising from an international transaction. In view of this, the price charged for such a transfer should be justified using ALP and the corresponding documentation & accountants report should be maintained by both the parties. Further, with effect from April 1, 2003, 100% tax exemption has been granted to long term capital gains arising from the transfer of the shares of a company listed on the BSE-500 Index of the Mumbai Stock exchange or another recognizable stock exchange in India. Thus, in the event the shares of the Indian entity transferred by one non-resident to another non-resident are listed on the specified stock exchange, it may possible to contend that transfer pricing regulations do not apply to long term gains arising out of such a transfer...

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