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Supreme Court recommends the Transfer Pricing Provisions should be extended to Domestic Transactions
A taxpayer was engaged in the business of manufacture and sale of consumer products and entered into an agreement with GlaxoSmithkline Consumer Healthcare Ltd ("GSKH") for a variety of services and paid for them at a cost plus 5 percent. The Revenue rejected the claim of the taxpayer on the basis that the costs incurred were excessive and the Tribunal and High Court ruled in favour of the taxpayer. Taxand India discusses the effect transfer pricing provisions will have on companies if extended to domestic transactions with a synopsis of various case updates that have been bought forward to Court.
There are number case updates that will have an effect on companies within those industries. Tax advisors and departments should ensure their accounting standards are up to date and should make management aware of any concerns.
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