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 :: cpt :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARD :: TDS :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: VAT RATES :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India
 
 
« Transfer Pricing »
 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
 New transfer pricing decree: a step closer to international standards

Heated debate over transfer pricing
September, 01st 2014

A key challenge facing companies in India is the litigation over transfer pricing. India's government and foreign companies doing business in the country are debating whether business conducted between two companies belonging to the same parent is artificially mispriced for the purpose of lowering their tax bills.

The deputy head of accounting firm KPMG in India, Dinesh Kanabar, argued in July that the problem had become "rampant," citing estimates that 70 percent of all cases occur domestically despite India accounting for less than 2 percent of global trade.

Much of the fault lies in the government’s attempts to shore up its tax base and fund a fiscal deficit exacerbated by wasteful fuel subsidies, estimated at last count to be the fourth largest in the world.

In a landmark case that sent shockwaves through the business community, India’s government altered its tax code in 2012 with retroactive effect in order to circumvent a Supreme Court ruling weeks earlier that barred it from demanding roughly 1.8 billion euros in back taxes from Vodafone. As a result, India fell three rungs to 134th out of 189 countries in terms of ease of doing business according to the most recent World Bank annual rankings while Transparency International deems India more corrupt than Liberia.

Recent signals from the newly installed cabinet under Prime Minister Narendra Modi of the Hindu nationalist party BJP have been promising, however. Not only does the government pledge it will invest about 6.5 billion euros to build more roads and highways, double the amount earmarked in last year’s budget, but it also plans to simplify taxes and adopt an industry proposal on transfer pricing. Although the business community was disappointed that no effort was made to change the so-called “retro tax” that blindsided Vodafone two years ago, Finance Minister Arun Jaitley has indicated the new government would refrain from fresh levies on past transactions.

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

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