The increasing globalisation of businesses has thrown up new challenges for the governments worldwide. Tax regulators have been struggling to curtail tax planning by multi-national conglomerates by structuring transactions in a manner to reduce payment of tax. Transfer pricing regulations were introduced by the regulators to ensure that companies having presence in multiple nations pay the tax due in each country.
Transfer pricing requires that the business demonstrate that the profit taxable in a country is commensurate with the functions undertaken, assets employed and risk taken. Further, documentation in this respect is required to be maintained by such businesses.
From financial year starting on April 1, 2012, transfer pricing regulations in India have been extended to domestic transactions between related parties as well.
- Compiling the required documentation and preparation of transfer pricing
- Benchmarking transactions with associated enterprises
- Determination of most appropriate method
- Preparation and issue of report of accountant (Form 3CEB)
- Advising clients on optimal Pricing Policy.
- Conducting Transfer Pricing Audits and Certification for both International and Domestic transactions.
- Representation before various authorities
- Handling Advance Pricing Agreement (APA) assignments.
- Representation before the transfer pricing officer
- Representation before the Dispute Resolution Panel
- Compliances w.r.t Country by Country Reporting and Master File.