Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: VAT RATES :: TDS :: cpt :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit
« Transfer Pricing »
 How advance pricing agreement helps India-Singapore business ties
  CBDT to accept transfer pricing MAP sans riders
 How transfer pricing documentation can make you a happier person
 Transfer pricing review and adjustments in Luxembourg
 Here is what Modi government can do for transfer pricing
 Transfer Pricing In International Transactions – An Overview
  Transfer pricing 2017 year-in-review
 New Transfer Pricing Regime to Regulate Documentation
  CBDT notifies secondary adjustment transfer pricing rules
  A web of requirements in transfer pricing regime
 Hong Kong bill would revise multinational firm tax and transfer pricing rules

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 2018 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