Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: TDS :: ACCOUNTING STANDARDS :: VAT Audit :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: empanelment :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: form 3cd :: VAT RATES :: list of goods taxed at 4%
 
 
« News Headlines »
 Know how you can claim return of income in Form 26 AS case
 What you must know for tax filing this year
 How to file tax return if you have two Form 16s
 10 things you should know about Form 26 AS
 How to file income tax return without Form 16
 How to rectify income tax returns
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?
 7 changes that affect income tax return filing this year

Transfer pricing rules help Income -Tax dept
October, 12th 2009

Transfer pricing (TP) rules that were put in place by the government in the 2001-02 Budget has helped the countrys direct tax regime to earn an additional Rs 15,000 crore to date, according to figures available with the Income-Tax department.

Ever since the first assessment under the TP rules were made in 2003-04, the revenue realised through it has been on the ascent, rising at a rate of 20-25% every year. It is also expected to go up this fiscal, in view of the new Dispute Resolution Panel of collegium of commissioners, which will look into all the TP assessments.

The collegium of commissioners, comprising three commissioners, are appointed to pass a decision on the demands made by the TP officer. This order is binding on the I-T department. This system eliminates delay in realising the tax demand, and therefore, the department expects the tax via TP rules to increase substantially this year.

The TP rules, like in many other countries, were introduced in India with the objective of checking the possibility of revenue leakage in cross-border transactions between related parties. This is a major tool in the hands of the tax department to identify adjustments in transactions between related parties who are said to cover up the actual transaction value.

Those tracking the issue said there is a visible tendency among certain MNCs to park their profits in countries where the tax rate is low by inflating their transactions in such countries. Simultaneously, they also under-report the income generated from countries where the tax rate is high.

Over 60% of the global transactions are between related parties. Therefore, most developed countries have already put in place their own TP rules, especially the member countries of the Organisation for Economic Co-operation Development (OECD). However, there has been an increasing demand from African governments to legislate their own TP rules to manage issues related to taxing cross-border transactions.

According to estimates made by independent economists, about $800 billion escape tax net in these countries annually. This is on account of having no system to scrutinise related-party transactions. Normally, this is a huge burden on these countries, if one takes into account the size of their GDP, which is often less than the turnover of the MNCs that operate there.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions