The scope of Transfer Pricing was only restricted to international transactions only, but with effect from 1st April, 2013. Its scope has been extended to Domestic level also from Assessment ear (AY) 2013-2014.

• Section 92BA of the TP regulations defines specific domestic transactions under TP which states that specific domestic transaction in case of the assessee means any of the following transactions-

• Any expenditure incurred or to be incurred in connection with a payment made or to be made to a person referred to in section 40A

(2) (b).3. Transactions referred to in section 80A.

• Any transfer of goods or provision of services as provided in subsection 8 of section 80- IA.

• Any business transaction between the assessee and another person as referred to in subsection 8 of section 80-IA.

• Any transactions which have been mentioned under chapter VI-A or section 10AA , or a person to whom provision of section 8 or subsection 10 of 80IA is applicable.

• And where the aggregate of such transactions entered into by the assessee in the previous year exceeds 20 crores.

• Any other transactions as may be prescribed.