Section 92E of ITA, 1961 : Section 92E: Report From An Accountant To Be Furnished By Persons Entering Into International Transaction Or Specified Domestic Transaction

Explanation using Example

Imagine a company in India, SpiceExport Ltd., which buys raw spices from a related company in Vietnam and sells them across the globe. Since SpiceExport Ltd. has transactions with a related foreign entity, these are considered international transactions. Under Section 92E of the Income-tax Act, 1961, SpiceExport Ltd. is required to obtain a report from a chartered accountant. This report will detail the transactions, ensuring they are conducted at arm's length prices to prevent profit shifting. The company must then submit this report to the tax authorities by the specified due date, typically November 30th, following the relevant financial year.