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: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: Central Excise rule to resale the machines to a new company :: VAT RATES :: VAT Audit :: TDS :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: articles on VAT and GST in India :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: cpt
 
 
« News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

Experts moot safe harbour norm to keep MNC biz
January, 25th 2007

Do not kill the golden goose! Cautioning that India could lose out on the global offshoring pie if taxation practices are not corrected, industry and tax experts are pitching for introduction of safe harbour provisions in transfer pricing policies for captive BPOs in Budget-07.

Although Indias importance as the global offshoring hub is growing unabated, we must not forget there are competitors ready to grab a share of the offshoring pie. If over-zealous transfer pricing officers adopt margins as high as 25% for software services and 37% for ITeS, it may defeat the very purpose of offshoring and MNCs may be compelled to leave India for more competitive destinations, according to BSR & Co partner Sudhir Kapadia.

Nasscom president Kiran Karnik said business hated uncertainty and would prefer to operate in a regime which offered certainty on taxation.

With three years of assessment experience in transfer pricing, the time is ripe for introducing safe harbour provisions, BSR&Co said in a memorandum to the FM. In a sense, safe harbour provisions are akin to presumptive basis taxation, which is not foreign to the Indian I-T statute. E&Y partner Amitabh Singh favours advance pricing arrangements, which, he said, could help the situation to quite an extent.

A safe harbour provides circumstances in which a taxpayer can follow a simple set of rules under which transfer prices are automatically accepted by the tax authority.

Kapadia said Indias transfer pricing regulations are based on arithmetical mean standard. The firm suggested the inter-quartile range, a statistical measure which eliminates outlier companies those earning higher-than-normal profits or lower-than-normal profits.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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