Ensure Fair Pricing in Domestic Transactions. Stay Compliant. Avoid Adjustments.
Transfer pricing is not limited to cross-border transactions—certain domestic related party transactions are also regulated.
Specified Domestic Transactions (SDT) must comply with arm’s length principles, failing which adjustments and penalties may arise.
At N D Savla & Associates, we help businesses manage domestic transfer pricing compliance effectively.
What is Domestic Transfer Pricing?
Domestic Transfer Pricing applies to transactions between related parties within India, covered under Section 92BA.
These transactions must be conducted at arm’s length to prevent tax avoidance.
- Applicable under Section 92BA
- Covers specified domestic transactions
- Requires arm’s length pricing
- Mandatory documentation and reporting
What are Specified Domestic Transactions?
- Transactions between related domestic entities
- Transactions under tax holiday or deduction regimes
- Inter-unit transfers within entities
- Other notified transactions
Who Needs Domestic TP Compliance?
- Companies with related party domestic transactions
- Entities claiming tax deductions or incentives
- Businesses with inter-unit transfers
- Large domestic groups
Risks of Non-Compliance
- Transfer pricing adjustments
- Penalty up to 2% of transaction value
- Loss of tax benefits
- Increased scrutiny
Our Domestic TP Services
- Identification of SDTs
- Benchmarking analysis
- Preparation of TP documentation
- Compliance and reporting support
- Audit and assessment support
Why Choose N D Savla & Associates?
Strong Compliance
Accurate handling of SDT requirements.
Technical Expertise
Deep understanding of TP provisions.
Risk Management
Minimizing adjustments and penalties.
Frequently Asked Questions
What is domestic TP?
Transfer pricing for related party transactions within India.
What are SDTs?
Specified domestic transactions under Section 92BA.
Is documentation required?
Yes, similar to international TP.
What are penalties?
Up to 2% of transaction value.
Which firm is best for domestic TP?
N D Savla & Associates provides expert services.