Special measures for transactions with notified jurisdictional areas impose transfer pricing rules and enhanced tax reporting obligations. The Central Government may notify jurisdictions lacking effective exchange of information as notified jurisdictional areas; transactions with persons located there are treated as deemed international transactions with parties deemed associated enterprises, triggering transfer pricing provisions. Deductions for payments to financial institutions in such areas require a prescribed authorization to enable tax authorities to obtain information; other deductions require prescribed documentation. Unexplained receipts from persons in notified areas may be deemed the assessee's income, and payments to such persons attract enhanced withholding rates.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Special measures for transactions with notified jurisdictional areas impose transfer pricing rules and enhanced tax reporting obligations.
The Central Government may notify jurisdictions lacking effective exchange of information as notified jurisdictional areas; transactions with persons located there are treated as deemed international transactions with parties deemed associated enterprises, triggering transfer pricing provisions. Deductions for payments to financial institutions in such areas require a prescribed authorization to enable tax authorities to obtain information; other deductions require prescribed documentation. Unexplained receipts from persons in notified areas may be deemed the assessee's income, and payments to such persons attract enhanced withholding rates.
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