Transfer Pricing

Transfer pricing is a valuing the transactions between associated enterprises at an arm’s length Price. Transfer Pricing regulations are required since there are:

• Cross border transactions in the nature of
• Intra Group transactions and
• Tax rates in two countries are different and
• Management of an enterprise is likely to avoid taxin a particular country by manipulating transfer prices.

This is the basic idea of International Transfer Pricing.

The Finance Act 2012, extends the scope of TP provision to ‘Specified Domestic Transactions’ between related parties w.e.f. 1 April 2012 commonly known as Domestic Transfer Pricing, whereby the transactions between related parties are also covered. This is to keep an eye on transactions between related parties whether or not taking place at arm’s length price.

We provide various services which include furnishing of CA Report, Memorandum stating corporate background and analysis based on FAR, representing the assessee in front of the department, etc