R
elated party transactions refers to business transac-
tions, involving sale/purchase of goods or services,
transfer of assets (tangible or intangible), inter-corpo-
rate loans, loans to directors/senior management/con-
sulting contracts/real estate deals/legal or accounting
services, etc. These transactions are usually between
parties related in any manner—a parent company and
its subsidiaries and/or aliates, owners, directors or
management, family members of the promoters or se-
nior executives, etc. Abuses in the related party trans-
actions have implications from the point of view of
corporate regulation as well as tax administration par-
ticularly income tax, customs and central excise.
Related party transactions, if left unregulated, can ...