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: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: empanelment :: VAT Audit :: articles on VAT and GST in India :: due date for vat payment :: TDS :: list of goods taxed at 4% :: form 3cd :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company
 
 
« Transfer Pricing »
 Relief for Indian MNCs likely as government mulls diluting POEM rules
 EY Azerbaijan holds seminar on transfer pricinga
 India among top 3 investment destinations over medium term
 India notifies amended tax treaty with Singapore
 Rollback provision available in respect of bilateral advance pricing agreement under the India-Korea DTAA
 Advance pricing agreement with rollback provision from April 1 under India-Korea DTAA
  India among the top three nations where transfer pricing policies faced official examination
 World Tax and World Transfer Pricing submissions open
 African Tax Officials Receive Transfer Pricing Training
 India-Russia spar over pricing and transfer of tech in Kamov copters
 Highlights Of Recent Amendments In The Communiqué Concerning The Mergers And Acquisitions

Government should end transfer pricing and other tax woes
January, 27th 2015

India and the US have done well to finalise a framework to resolve long-pending transfer pricing disputes. Stitched up before US President Barack Obama’s visit, the solution ensures that an MNC is not taxed twice on the same income, and will get the due tax credit. It is a huge relief for taxpayers and also makes conciliation through the mutual agreement procedure (MAP), a preferred route available in bilateral tax treaties, to settle cross-border disputes.

Transfer pricing agreements mandate transactions between group companies to be priced at market rates. India’s tax office has raised hefty claims, especially on US software MNCs with operations here, alleging that they transferred profits to tax havens. India hasn’t got a penny so far as many companies contested their tax demands through MAP. The government will now get revenues, even if the amount is lower than the original tax demand. A time limit must be set to resolve MAP cases in future to ensure they don’t drag on. More important, the resolution opens a window for advance pricing arrangements (APAs) between the two countries, and that’s welcome. APA is an agreement between a taxpayer and the tax authority to compute transfer prices in advance. It lends certainty to MNCs about their tax liability and will help draw investments from US companies.

The government should also quickly make rules to align India’s transfer pricing regulation with best practices as promised in this year’s Budget. Faster resolution of all international tax disputes also calls for efficient functioning of the dispute resolution panel set up some years ago. India has joined the global effort to end aggressive tax planning by large companies. It should also make tax laws clear and simple to minimise disputes.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

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