Q. If International Transfer pricing report is already applicable whether for domestic associates concern transaction exemption limit of 30 crores is available.

Question

A unit in Ludhiana has an associate concern in Qatar having transaction value of 5 crores and we are filing International Transfer Pricing Report. Now this unit is also having another associate company registered u/s 115BAB in Punjab with transaction value of 15 crores. Do it need to file domestic transfer pricing report also as it is already covered in transfer pricing reporting due to foreign connection. whether 30 crores limit of domestic transfer pricing is available and we continue to file only international transfer pricing report.

Answer 1

Transfer pricing norms on specified domestic transaction is applicable only if aggregate value of specified domestic transaction exceed INR 20 crore. TP on SDT does not apply automatically due to the applicability of the foreign transactions.