Latest Expert Exchange Queries
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: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: form 3cd :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: VAT Audit :: due date for vat payment
 
 
« Transfer Pricing »
 Central Board of Direct Taxes (CBDT) signs two Unilateral Advance Pricing Agreements (APAs) with Indian taxpayers
 Duff & Phelps Acquires Leading Transfer Pricing Asia-Pacific Advisory Firm
  Updated UN manual reveals India’s transfer pricing positions
  Transfer pricing: Centre moves forward, introduces ‘secondary adjustments’
 India Issues First Comprehensive Report on Advance Pricing Accords
 Godrej & Boyce Manufacturing Co Ltd vs. DCIT (Supreme Court)
  Domestic transfer pricing leeway provides a loophole for Indian companies
 CBDT signs two unilateral APAs with taxpayers
 India signs record 88 APAs in FY17
 Relief for Indian MNCs likely as government mulls diluting POEM rules
 EY Azerbaijan holds seminar on transfer pricinga

Government amends rules to reduce Transfer Pricing disputes
October, 28th 2015

The government has issued the final rules to incorporate range concept and use of multi-year data in transfer pricing calculations to reduce litigation and bring Indian laws in line with international practices. The Income Tax Department had issued the draft of the rules in May inviting stakeholder comments. The new regime will be applicable for calculating the arm's length pricing of international transactions and specified domestic transactions from April 1, 2014, the finance ministry said on Tuesday.

Transfer pricing refers to fixing the price of goods or services transferred between two related entities, which could be cross-border or domestic. Tax officials have elaborated rules to fix these prices to ensure companies pay appropriate tax.

Most rules are based on how these goods or services would be priced if the transaction was at

an 'arm's length' or between unrelated entities. Transfer pricing is one of the main reasons for tax disputes in India. The tax department has made these changes to provide more clarity. "The use of range concept, being astatistical tool, enhances the reliability of analysis undertaken for

computation of ALP (arm's length price)," the finance ministry said in apress release. Essentially, after comparing prices with that of comparable companies, if transfer prices shown by the assessee company are within a range, the tax authorities will accept the pricing.

This will help reduce adjustments to only cases where transfer prices are outside the range.

The new rules also provide for use of multi-year data, which will take care of annual fluctuations.

Stay on top of business news with The Economic Times App. Download it Now!

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

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