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: empanelment :: due date for vat payment :: ACCOUNTING STANDARDS :: VAT RATES :: ACCOUNTING STANDARD :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: cpt :: articles on VAT and GST in India :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit
 
 
« Direct Tax »
 Senior IRS officer Rajendra Kumar appointed new CBDT member
 Income tax raids continue on premises of three Chennai businessmen
 Hopeful of meeting direct tax collection target for this financial year: CBDT
 Bengaluru tops in income tax probes after demonetisation
 Income Tax department rejects black money disclosures of over Rs 2 lakh crore
 CBDT urges people to protect bank accounts from 'unscrupulous elements'
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016

Central Board of Direct Taxes panel to formulate
January, 11th 2010

The Central Board of Direct Taxes (CBDT) has set up a committee to formulate rules for the safe harbour provisionsa set of rules that would enable the income tax (I-T) authorities to accept the transfer pricing returns without scrutiny.

Transfer pricing refers to the price at which one arm of a company, usually a multinational corporation, transfer goods or services to another division of the same organisation in order to calculate each arms profit and loss separately.

Chaired by director-general of international taxation, the committee comprises of senior tax officials and representatives of trade and industry as well as Institute of Chartered Accountants of India (ICAI). The objective of the committee is to set conditions under the safe harbour rules to facilitate acceptance of a transfer pricing return without scrutiny. Foremost among the committees task is to set an acceptable margin which would act as a benchmark for the industry.

For example, if the safe harbour rules stipulate that the margin in a particular industry is 20%, and if the transfer price declared by a company, engaged in the that industry, is not less than the margin, the I-T authorities would accept the return without questions.

However, experts feel that the margins should not be rigid. Deloitte India partner Samir Gandhi told ET: If a company reports a margin which is less than the stipulated benchmark, the authorities should give the enterprise an opportunity to defend its case.

The rules, once introduced, will lend an investment friendly image to India. It will also put an end to the requirement of collecting huge amount of data regarding transfer pricing transactions, thereby saving time and energy.

Tax regimes of many developed nations such as Australia, New Zealand and Canada have incorporated safe harbour rules in their tax laws to provide clarity on the tax liability of multi-national companies operating in their countries.

TP Ostwal, a senior chartered accountant said: It is high time India looked at safe harbour provisions. Several developed nations have their own safe harbour rules.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

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