« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  A job half done... CPM backs phaseout of PNs, tax sops for NRIs... » Taxman calls on global auto firms September, 05th 2006 I-T dept says Toyota, Suzuki violating transfer pricing norms. Transfer pricing has emerged as a bone of contention between the income-tax department and global automobile majors operating in India. According to official sources, the I-T department has asked Japanese auto major Toyota to pay around Rs 190 crore. Another demand of around Rs 150 crore has been made on Suzuki. These demands were raised in March 2006 for the 2003-04 assessment year, sources said. The department is of the view that auto components imported by Indian subsidiaries from their parent are not priced according to the arms length pricing norms, thus violating rules. Transfer pricing is the method by which the goods imported or loans extended by foreign companies to their Indian subsidiaries or vice versa are priced. The I-T department is concerned that the margins earned by these companies are not comparable with their peers in the industry. A faxed query to Toyota Kirloskar Motors, the Indian subsidiary of Toyota, did not elicit any response. Meanwhile, the official spokesperson from Maruti Suzuki India said Maruti had appealed to the income tax commissioner in this regard. As the matter is subjudice, the company did not comment. The matter assumes significance as the Central Board of Direct Taxes is considering a proposal to revise the pricing norms. The proposal says that industries earning a margin of 5 per cent or less than the arms length price should be linked to the profitability of the industry and not the margin. This is significant as the transfer pricing norms specify that if the margin varies between 5 per cent of the arms length price, no adjustments can be made. Incidentally, most auto companies have margins which are 5 per cent or less.