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: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ACCOUNTING STANDARDS :: empanelment :: VAT Audit :: list of goods taxed at 4% :: VAT RATES :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: cpt :: TDS :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India
 
 
« Transfer Pricing »
 India Finalizes Pricing Reporting Rules Under OECD Plan
 Final Transfer Pricing Rules For Multi-Nationals Notified
 Govt eases transfer pricing norms for offshore funds
 India’s final transfer pricing master file rules retain unique flavor
 Transfer pricing: tighter reporting norms for multinationals notified
 Transfer pricing once again comes to the fore for MNCs
 Valuation rules under GST could lead to transfer pricing disputes
 A web of requirements in transfer pricing regime
 RBI panel reveals ad hoc, arbitrary practices by banks to inflate interest rates
 Taxman tightens reporting norms for MNCs
 Sabh Infrastructure Ltd Vs. Asstt. Commissioner Of Income Tax

New rules to cut transfer pricing disputes
September, 14th 2017

India has unveiled a new set of rules that aim to further provide certainty to multinationals and reducing transfer pricing disputes and litigation.

The Central Board of Direct Taxes (CBDT) has revamped the norms called the safe harbour rules, unveiled in 2013, under which income tax authorities do not question pricing of dealing between multinational companies and a related party such as their subsidiaries. The rules were not much relied upon by the industry that wanted them further aligned with the prevailing sectoral standards. The new norms will benefit a host of sectors such as IT and ITeS, pharma and automobile.

“In order to reduce transfer pricing disputes, to provide certainty to taxpayers, to align safe harbour margins with industry standards and to enlarge the scope of safe harbour transactions, the CBDT has notified a new safe harbour regime based on the report of the Committee set up in this regard,” the CBDT said in a statement on Thursday.

Tax experts say India has made changes in line with the Multilateral Convention of Base Erosion and Profit Shifting (BEPS). “India has derived the principles for acceptability of management fee from BEPS Action 10 and though India has not accepted the BEPS Action 10 report on low value added service fees, it has partly aligned itself to the report of the OECD [Organisation for Economic Cooperation and Development]. It’s a huge relief for smaller taxpayers and would help in reducing TP controversy,” said Vijay Iyer, national leader-transfer pricing services at EY.

Management fee has been a big pain point for MNCs with subsidiaries in India and has been a matter of many appeals filed with the tribunal.

The new rules come into effect from April 1, 2017, and shall continue to remain in force for two succeeding years, up to assessment year (AY) 2019-2020.

Assessees eligible under the present safe harbour regime up to AY 2017-18 shall also have the right to choose the safe harbour option most beneficial to them.

A new category of transactions — Receipt of Low Value-Adding Intra-Group Services — has also been introduced.

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

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