Page 458 - MANUAL OF SOP

General Issues

howsoever described, of the other shall be deemed to be related for the
purpose of these rules, if they fall within the criteria of this sub-rule.
19.5. The aforesaid definition of related party under the Customs Valuation
(Determination of Value of Imported Goods) Rules, 2007 is similar to as contained
in the Article 143 of the implementing provisions of Council Regulation (EEC)
No 2454/93 of the European Union. Both of these are based on the definition
of related party provided under paragraph 4 of Article 15 of the Agreement on
Implementation of Article VII of the General Agreement on Tariffs and Trade 1994
(WTO Customs Valuation Agreement). Therefore, this definition of ‘related party’
has been incorporated in the Exporter’s Questionnaire as well as in Application
Format for New Shipper Review also.

Indian Companies Act, 2013
19.6. The Indian Companies Act 2013 requires the companies especially Public
Limited Companies to disclose all transactions with related parties. It may, however,
be noted that the NIP of any company is worked out based on the audited data
submitted by the respective company. Related Party has been defined under section
2(76) of The Companies Act, 2013 is as under:

19.7. Related party, with reference to a company, means-

(i) A director or his relative;
(ii) A key managerial personnel or his relative;
(iii) A firm, in which a director, manager or his relative is a partner;

(iv) A private company in which a director or manager or his relative is a member
or director;
(v) A public company in which a director or manager is a director and holds
along with his relatives, more than 2% of its paid up share capital;

(vi) Anybody corporate whose Board of Directors, managing director or
manager is accustomed to act in accordance with the advice, directions or
instructions of a director or manager;

(vii) Any person on whose advice, directions or instructions a director or manager
is accustomed to act:
Provided that nothing in sub-clauses (vi) and (vii) shall apply to advice,
directions or instructions given in professional capacity;

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