Transfer Pricing in India is regulated by a separate code under Sections 92 to 92F of the Indian Income Tax Act, 1961 covering intra-group cross-border transactions which is applicable from 1 April 2001 and specified domestic transactions which is applicable from 1 April 2012. Since the introduction of the code, transfer pricing has become one of the most important international tax issue affecting enterprises operating in India.
“The Indian Transfer Pricing Code prescribes that income arising from international transactions or specified domestic transactions between associated enterprises should be computed having regard to the arm’s-length price. It has been clarified that any allowance for an expenditure or interest or allocation of any cost or expense arising from an international transaction or specified domestic transaction also shall be determined having regard to the arm’s-length price”
Transfer pricing provisions should be adhered on a continuous basis and should be factored in the business model itself in order to minimize the related tax risks in the long run without putting business model into question by tax authorities.
Sheladiya & Jyani Transfer pricing Practice is a one stop portal for managing all your transfer pricing requirements. Our consulting approach is marked by analysis of our client’s business activity and providing solutions to meet the requirements of transfer pricing legislation. Our services include:
- Transfer Pricing Planning
- Assistance in preparing transfer pricing documentation
- Preparing transfer pricing study
- Advice on Advance Pricing Arrangement
- Legal Work
- Assistance in drafting responses to notices, enquiries and such other communication received from tax authorities
- Assistance in handling of assessments and appeals
- Providing in-house training to manage requirements of transfer pricing legislation like documentation, reports, database, etc