Comprehensive Transfer Pricing Services
Ensure Compliance with Experienced Tax Advisors and specialists in Transfer Pricing
What is Transfer Pricing ?
Transfer pricing regulations and laws in India govern the pricing of inter-company transactions between related parties, such as a parent company and its subsidiaries, in order to prevent tax evasion and ensure that transactions are conducted at arm's length prices.
The Indian transfer pricing regulations are based on the arm's length principle, which requires that prices charged in inter-company transactions be consistent with prices that would be charged between unrelated parties in similar circumstances. The regulations apply to both domestic and international transactions and are enforced by the tax authorities through audits and assessments.
To ensure compliance with Indian transfer pricing regulations, multinational corporations operating in India should design appropriate transfer pricing policies, maintain transfer pricing study report on yearly basis.
Transfer Pricing Planning Services
Transfer pricing planning services include but not limited to:
Developing a transfer pricing policy that is consistent with the company's business objectives and meets the requirements of relevant tax authorities.
Analyzing the company's operations and identifying intercompany transactions that may be subject to transfer pricing regulations.
Conducting a benchmarking analysis to identify comparable transactions and determine the appropriate transfer prices based on market conditions.
Identifying potential transfer pricing risks and opportunities, such as tax planning opportunities and potential compliance issues.
Developing and implementing transfer pricing documentation and compliance procedures to ensure that the company meets regulatory requirements and minimizes the risk of tax disputes.
Providing ongoing support and advice on transfer pricing issues as they arise.
Effective transfer pricing planning services can help multinational corporations to reduce their tax liabilities, minimize compliance risks, and improve their overall financial performance.
Transfer Pricing Study
Transfer pricing study (also refers to as ‘transfer pricing documentation’) refers to the set of documents that multinational corporations must prepare to demonstrate their compliance with transfer pricing regulations. Transfer pricing study typically include a detailed analysis of the company's transfer pricing practices, as well as supporting data and evidence to justify the prices charged for intercompany transactions.
In India, transfer pricing regulations require multinational corporations to conduct a transfer pricing study to determine the appropriate prices for inter-company transactions. The transfer pricing study should be conducted using a methodology that is consistent with the arm's length principle, which requires that prices for inter-company transactions be equivalent to prices that would be charged between unrelated parties in similar circumstances.
The transfer pricing study must be prepared by an experienced professional or a transfer pricing expert and should include the following information:
A description of the taxpayer's business operations and organizational structure.
A detailed analysis of the controlled transactions, including the nature and value of the transactions, the functions performed, and the risks assumed by the parties involved.
A description of the transfer pricing methodology used to determine arm's length prices, including an explanation of the factors considered in determining the appropriate comparables and the reasons for any adjustments made to the data.
An analysis of the comparables used to determine arm's length prices, including a description of the selection criteria, the sources of data, and the reasons for any adjustments made to the data.
A summary of the financial results of the controlled transactions, including a comparison of the actual results with the results that would have been obtained if arm's length prices had been charged.
The transfer pricing study must be completed and submitted to the Indian tax authorities annually along with the company's tax return. In addition, the company must maintain documentation supporting the study for a period of eight years, in case of any audit or inquiry by the tax authorities.
The transfer pricing study provides tax authorities with the information they need to determine whether a company's transfer pricing practices are consistent with arm's length principles. By preparing thorough and accurate transfer pricing study, companies can reduce the risk of tax audits, penalties, and disputes with tax authorities.
Customized Transfer Pricing Solutions
Our experienced tax advisors provide tailored solutions to meet your unique transfer pricing needs, ensuring compliance and reducing risk.
Expert Transfer Pricing Documentation
We prepare and review transfer pricing documentation to support your intercompany transactions and minimize the risk of penalties and disputes.
And let's not forget
Transfer Pricing Compliance Support
Our team offers ongoing support to ensure that your transfer pricing policies and practices align with changing regulations and best practices.
We are Chartered Accountants with 12+ years of experience in the domain area from Big4s and Industry. We bring about 50+ years of experience to the table to serve the clients better. Specializing in transfer pricing compliance and documentation for transactions among associated entities. Our customized solutions mitigate risk and optimize results for our clients.
We have a team of qualified and semi qualified Chartered Accountants to support all your tax compliances. We are based out of Hyderabad with associates in 12 major cities in India.
Reach us through "Get in Touch" section below for a quick discussion over your challenges or queries.