Excerpt from the article “Related Party Transaction (RPT) simply means any transaction between two parties who are joined together through a special relationship. Corporates generally transact amongst group entities or related parties for operational ease. However, it can easily be misused by the corporates as a tool to evade taxes. This is also evident from some of the recent corporate scams.”
“Government has been finding various means and ways to regulate these types of transactions. Thus, various legislations operational in India have made it mandatory to report the transactions to the concerned authority. The reporting regime prevalent in India aims to assess the genuineness of the transaction by comparing it with Arm’s length transaction.” Read more…..
This Article has been published in Taxmann on January 11, 2018