The requirement of transfer pricing has significantly increased with rise in international trade, foreign investments, cross border transactions and regulatory developments. Significant increase in tax disputes and profit shifting has made transfer pricing a focus area for stakeholders.
The Indian Transfer Pricing Regulations (TP Regulations) comprise Sections 92 to 92F of the Income-tax Act, 1961 (“the Act”) and Rules 10A to 10T of the Income Tax Rules, 1962 (‘the Rules’) which provides for meaning and computation of the transfer price and suggests detailed documentation requirements.
The Finance Act, 2012 has also expanded scope of TP regulations by insertion of a section 92BA in the Indian Income tax Act, 1961 to include Specified Domestic Transactions (SDTs) within the ambit of transfer pricing. SDTs would include domestic transactions entered between associated enterprises. In addition the Finance Act, 2012 also introduced Section 92CC and 92CD read with Rules 10F to 10T and 44GA to provide the Advance Pricing Agreement Regime in the Indian transfer pricing environment.
We at EasyStart, understands the need of business owners and requirements of Indian tax authorities to provide a customized solutions to the management of company along with providing them solutions to make critical decisions.
Our range of services includes:
Transfer Pricing Planning
Before entering into any international transactions or specified domestic transactions with associated enterprise it is essential that the transaction is evaluated, structured and planned in accordance with the regulatory requirements considering the impact of transfer pricing. We help the business owners/management in effective planning of various transactions with associated enterprises, so as to avoid any transfer pricing disputes.
Transfer Pricing Documentation
Rule 10D of the Indian Income Tax Act, 1962, prescribes mandatory documentation in relation to transfer pricing to demonstrate the arm length nature of internal and specified domestic transactions with associated enterprise. We assist clients in preparing a comprehensive transfer pricing documentation in accordance with prescribed regulatory guidelines.
Accountants Report in Form 3CEB
The transfer pricing provisions requires the taxpayer subject to transfer pricing to file an Accountant’s Report in Form 3CEB with the Income Tax Department within the due date of filing of return of income. The accountant certifies the arm length nature of related party transactions and confirmation on maintenance of prescribed transfer pricing documentation.
Transfer Pricing Assessments
In certain cases considering the nature and volume of transactions companies may receive show cause notice from income tax department to substantiate arm length nature of international and specified domestic transactions with associated enterprises. We help clients by appearing before income tax authorities and present the case with best professional practices.