The Goods and Services Tax (GST), implemented in India from July 2017, integrates various indirect taxes into a unified system aimed at eliminating cascading effects and creating a seamless national market. For businesses, especially concerning Related Party Transactions (RPTs), understanding GST regulations is crucial. RPTs involve exchanges between entities with shared control or familial ties, necessitating meticulous documentation and valuation at an ‘Arm’s Length Price’ to prevent tax evasion. However, determining the open market value for such transactions poses challenges, impacting compliance efforts.
Navigating GST Implications for Related Party Transactions in India
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