P K DE & Associates

Domestic Transfer Pricing

Assessments from financial year 2012-13 would require application of transfer pricing rules for domestic transactions with related parties. Following is the overview of the latest developments in Domestic Transfer Pricing regulations.Section 92BA provides the meaning of Specified Domestic Transactions to which various other provisions relating to transfer pricing will apply. These include the following:

Domestic Transfer Pricing

Assessments from financial year 2012-13 would require application of transfer pricing rules for domestic transactions with related parties. Following is the overview of the latest developments in Domestic Transfer Pricing regulations.Section 92BA provides the meaning of Specified Domestic Transactions to which various other provisions relating to transfer pricing will apply. These include the following:

Threshold exemption

In the legal context there are no specific legislative restrictions on the type of skills that may be brought in nor the numbers of staff. However, under Government Policy employment visas to foreigners are issued only for jobs requiring high skills and expertise.

Consequential amendments

The Government authorities dealing in issues relating to expatriate employment in India are the Ministry of Home Affairs and RBI In general, employers who are employing expatriates in India must satisfy the following conditions:

Domestic Transactions

All foreign nationals who enter India must obtain an appropriate visa from an overseas Indian Consular Post in their home country prior to entering India. A Foreigner entering India for the purpose of employment must possess a valid employment visa. An Employment Visa is given only for jobs that require very high level of skills and expertise.

Related party transactions

Multiple-entry employment visas are valid for one to five years. In other cases it is given for a specified period depending upon the need of the sponsoring organization, availability of Indian experts in the particular field, the benefit to be gained by the foreign nationals presence and necessity of visiting neghbouring countries.

Threshold exemption

In the legal context there are no specific legislative restrictions on the type of skills that may be brought in nor the numbers of staff. However, under Government Policy employment visas to foreigners are issued only for jobs requiring high skills and expertise.

Consequential amendments

The Government authorities dealing in issues relating to expatriate employment in India are the Ministry of Home Affairs and RBI In general, employers who are employing expatriates in India must satisfy the following conditions:

Domestic Transactions

All foreign nationals who enter India must obtain an appropriate visa from an overseas Indian Consular Post in their home country prior to entering India. A Foreigner entering India for the purpose of employment must possess a valid employment visa. An Employment Visa is given only for jobs that require very high level of skills and expertise.

Related party transactions

Multiple-entry employment visas are valid for one to five years. In other cases it is given for a specified period depending upon the need of the sponsoring organization, availability of Indian experts in the particular field, the benefit to be gained by the foreign nationals presence and necessity of visiting neghbouring countries.

International Transactions versus Specified Domestic Transactions

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