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Accounting Valuation and Transfer Pricing Valuation: Are they close enough?

January 6, 2020[2020] 113 taxmann.com 60 (Article)
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Ind AS, a set of accounting recently introduced in India is based on two important pillars known as Substance and Transparency. The same principles are also important under tax laws to unveil any colorable transaction in its real form and understand its actual impact. Thus, substance requirements for accounting & transfer pricing have led to a concept wherein the transaction needs to be valued independently irrespective of actual transaction price.
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