Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get 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) | 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: form 3cd :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: TDS :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: VAT RATES :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: due date for vat payment
 
 
Transfer Pricing »
 A web of requirements in transfer pricing regime
 RBI panel reveals ad hoc, arbitrary practices by banks to inflate interest rates
 Taxman tightens reporting norms for MNCs
 Sabh Infrastructure Ltd Vs. Asstt. Commissioner Of Income Tax
 Transfer Pricing For Multinational Entities
 The wash up - Transfer pricing and the Commissioner of Taxation
 Bosnia's Serb Republic tax body looks into transfer pricing in Nestro Group - report
 Catherine Harlow is new head of transfer pricing at AstraZeneca
  Transfer Pricing Adjustments - The Current Irish Landscape
 Transfer Pricing Adjustments - The Current Irish Landscape
 Will politics trump economics on petrol, diesel pricing?

New transfer pricing norms to reduce tax litigation
October, 20th 2015

In a bid to promote business-friendly taxation regime, the Centre has issued guidelines for transfer pricing (TP) provisions that are expected to reduce the rising volume of tax litigation.

According to the guidance note on international transactions issued by the Central Board of Direct Taxes (CBDT), one transfer pricing officer (TPO) will handle only up to 50 important and complex cases at a time, compared with 70 now. The move is expected to improve the quality of assessment and rationalise transfer pricing dispute cases that impair smooth operation of businesses in the country.

The government is also in the process of formulating guidance with respect to specified domestic transactions within the group. The guidelines will also be framed to determine the 'complex and important' cases.

Before making a reference to the TPO, the assessment officer (AO) will require to seek the approval of the principal commissioner or commissioner. The assessment officer must be satisfied there is an income or potential income arising from the case. Moreover, orders passed by the TPO will have to contain details of the data used and the reasons for arriving at a certain arm's length price (ALP) and the applicability of methods as they will be subject to judicial scrutiny.

Transfer pricing is the practice of computing arm's length price for transactions between group companies in different countries for determining profit and levying taxes.

The number of cases scrutinised has nearly quadrupled from 1,061 in 2005-06 to 4,290 in 2014-15. India has the highest TP litigation across the globe. "This does not augur too well for the Indian government, which is seriously looking at restoring the confidence of foreign investors and wooing them to invest in India," the latest Deloitte and Taxsutra report titled Transfer Pricing Dispute Trends suggests.

CBDT, the nodal body for tax policy, pointed out, "The application of method, including the application of the most appropriate method, the data used, factors governing the applicability of respective methods, computation of price under a given method will all be subject to judicial scrutiny. It is, therefore, necessary that the order of the TPO contains adequate reasons on all these counts."

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

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