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: ACCOUNTING STANDARD :: VAT RATES :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: due date for vat payment :: cpt :: VAT Audit :: articles on VAT and GST in India :: empanelment :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS
 
 
« Transfer Pricing »
  Domestic transfer pricing leeway provides a loophole for Indian companies
 Transfer Pricing Times: U.S. Tax Court Rules In Favor Of Amazon In Latest Transfer Pricing Case
 Government enters into 9 unilateral APAs with taxpayers in July
 BMR Advisors’ corporate tax practice deal goes down to the wire
 Over 300 Income Tax commissioners transferred across country
 GST won't apply to transfer of immovable property
 Outlining the transfer pricing law in Thailand
 OECD releases 42 comments on transfer pricing guidance for hard-to-value intangibles
 Transfer pricing toolkit for developing nations’ tax systems
 Transfer Pricing adjustment for excessive marketing expenses taking a twist in India
 Indian secondary adjustments for transfer pricing: what you need to know about the new rules

Government releases draft rules on range concept in transfer pricing
June, 19th 2015

The Central Board of Direct Taxes proposed alteration of norms for computation of Arm's Length Price (ALP) for international and domestic transactions. The proposed norms by the tax department include changes in methodology for computation of ALP to the range concept and use of multiple year data, it said in a release.

ALP is a practice used by MNCs whereby the amount charged for goods and services by a related party to another will be the same as if they weren't related. The issue has been a major concern on tax liability and profitability.

Finance Minister Arun Jaitley in his budget statement last year had talked about aligning transfer pricing regulations in India with best available practices. The finance minister had proposed the use of range concept and use of multiple years data compared with the prevalent practice of using arithmetic mean and one year’s data for comparable analysis.

The new methodology proposed by the CBDT stipulates that for computation of range, a minimum of nine entities would be used as comparable entities with selected party and that the weighted average of three year data shall be used for construction of data set. The data points between the 40th and 60th percentile should be considered for the range. If the points fall outside the range then the median of the range would be taken as ALP and adjustment to transfer price shall be made.

"The range concept shall be used only in case the method used for determination of ALP is Transactional Net Margin Method (TNMM), Resale Price Method (RPM) or Cost Plus Method (CPM)", the CBDT said.

While for entities for which comparable data are not available, arithmetic mean method will still be in effect. The CBDT has invited suggestion for the norms till May 31.

The transfer pricing norms come at a time when the government has been aggressively working towards streamlining tax issues which have been a source of contention between the MNCs and the tax department in the past. The efforts by the government to reduce corporate taxes and to implement Goods and Services Tax (GST) have met serious opposition in the Parliament. The government has also been embroiled with MNCs over the issue of retrospective taxation.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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