Penalty under Section 271AA for failure to maintain TP docs:
ARs. 50,000
B2% of transaction value
CRs. 1,00,000
D10% of tax
Answer & Solution
Correct answer: B. 2% of transaction value
1. Section 271AA penalises failure to keep/maintain/furnish info under 92D/286.
2. Penalty 2% of value of each international transaction or SDT.
3. 271AA(2) also for failure to furnish CbC report on time.
_Source: ICAI BoS CA Final Paper 7, Ch 24 "Transfer Pricing"_
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