New Section 92BA in Transfer Pricing

Romancing the New Section

New Section 92BA

Specified Domestic Transaction (SDT)

This section provides that an SDT means any of the following transactions (not being an international transaction): 

• Expenditure for which payment is made to a related party as specified u/s 40A(2)(b);
• any transaction in relation to transfer of goods or services between various businesses of the same assessee as referred to in section 80A;
• any transfer of goods or services referred to in section 80-IA(8) – inter-unit transfers;
• any business transacted between the assessee (covered u/s 80IA) and its associated enterprise – section 80-IA;
• any transaction, referred to in any other section under Chapter VI-A or section 10AA, to which provisions of sections 80-IA(8) or 80IA(10) are applicable; or
• any other transaction as may be prescribed by the CBDT,

These provisions are applicable to an assessee only where the aggregate value of the above mentioned transactions exceeds rupees 5 crores during the relevant financial year and they come into effect from Assessment year 2013-14 relevant to the financial year 2012-13 onwards.