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: due date for vat payment :: articles on VAT and GST in India :: VAT RATES :: Central Excise rule to resale the machines to a new company :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: empanelment :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt :: ACCOUNTING STANDARD :: VAT Audit
« Budget Extravaganza »
 Why advancing the Union Budget date may not make much difference
 Govt keen 2017-18 budget should not clash with polls: Arun Jaitley
 Finance Ministry seeks industry suggestions on taxation for Budget
 Budget should focus on fiscal firm up
 Finance ministry keen to present Budget on February 2 or earlier
 Poor railway performance may mar merged Budget
 Cabinet’s formal nod to be sought for Budget on Feb. 1
 Finance Ministry may talk to EC before finalising Budget date
 Govt starts biggest ever overhaul of Budget
 How does an early budget impact you
 Welcome steps to overhaul the Budget

Budget 2014: Private sector contributions to NPS may be taxed for past 5 years
July, 14th 2014

Doing business in India just got easier for international companies and home-grown multinationals with Finance Minister Arun Jaitley announcing new measures to reduce litigation on the transfer pricing front.

Three measures have been introduced on transfer pricing in the Budget — “roll back” provision in advance pricing agreements (APAs), range concept for determining arm’s length price and allowing multiple-year data for comparable analysis.

These steps will provide certainty to the taxpayer and go a long way in reducing “frivolous adjustments” in the Indian transfer pricing regime, SP Singh, Senior Director, Deloitte in India, told Business Line.

All these initiatives are international best practices prevalent in most developed countries, he said. Indian tax authorities have in recent years faced criticism for taking an “aggressive” stance on international taxation front, especially on transfer pricing issues.

The value of transfer pricing adjustments had run into several billion dollars in recent years and most of the demands have landed up in appellate forums.

An APA is an agreement between a taxpayer and tax authority determining the transfer pricing methodology for pricing the taxpayer’s international transactions for future years. The APA provisions were introduced in the income tax law from July 1, 2012.

A “roll-back” facility in APA would mean that an APA entered for future transactions could be applied for previous four years in specified circumstances.

This facility will help resolve recent pending disputes, said Rahul Mitra, Partner, Pricewaterhouse.

All the three measures will help reduce litigation around benchmarking analysis, he added.

Singh pointed out that a taxpayer availing of “roll-back” will get certainty for nine years (four years in the past and five years for the future).

The Finance Minister’s proposals to reduce litigation on transfer pricing gives a strong positive signal to investors that the Government is serious about reducing hurdles in doing business, said Arun Chhabra, Partner, Walker Chandiok & Associates.

Long-standing demands
The Budget has resolved some of the long-standing demands of taxpayers, especially roll-back of APAs, said Vijay Iyer, Partner and National Leader-Transfer Pricing, EY.

“Though the details are yet to be notified, the concepts of range and multiple year data have been advocated by taxpayers since the inception of transfer pricing rules in India. This would provide respite to the taxpayers,” Iyer said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

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