Direct Tax

Q. What is transfer pricing?

The establishing, evaluation, recording, and modification of prices for products, services, or the use of property (including intangible property) between related parties is known as transfer pricing.

Q. Is it mandatory?

Yes, in accordance with Sections 92 to 92F of the 1961 Income Tax Act.
Section 92 of the Income-tax Act of 1961 was replaced by new sections 92 and 92A to 92F in the Finance Act of 2001. According to these new rules, business outcomes from cross-border dealings between related companies must adhere to the arm's length concept.
The best suitable approach must be used to determine the arm's length pricing. According to the Income-tax Act, the business must compute ALP using one of the following techniques:

• Comparable Uncontrolled Price method (“CUP”)
• Resale Price Method (“RPM”)
• Cost Plus Method (“CPLM”)
• Profit Split Method (“PSM”)
• Transactional Net Margin Method (“TNMM”)

What we provide?

According to ALP, which was declared by the relevant authorities, we offer full-strength professional services on transfer pricing-related operations. We help you with transfer pricing in the following areas:

• Planning, assessing, and evaluating the process for transfer pricing.
• adherence to and compliance with current laws' requirements and regulations on transfer pricing.
• advocacy in front of the appropriate authorities.
• Professional tax planning combined with a flexible approach to transfer pricing methodology implementation.
• consulting services regarding any risks connected to current laws and the organization's policies in order to prevent taxes and legal repercussions.

Transfer pricing assessment U/s 92CA

During TP assessment, the transfer pricing officer assess arm’s length price of international transactions and any other discrepancies.

Services:

• representation in front of income tax authorities about investigations, assessments, etc.
• Appellate Authorities Representation
• Dispute Resolution Panel Representation
• Help with preparing and submitting applications to the Authority for Advance Rulings in order to get an advance ruling
• Representation before the Advance Ruling Authority

BEPS initiatives have boosted tax compliance with regard to foreign transactions and multinational corporations.

Services:

• Filing of Form 3CEB
• Filing of master file and CbC Report
• Filing of Form 15CA and Form 15CB
• Filing of flipside returns

When multinationals look at business opportunities beyond the boundaries of their countries, they are faced with the crucial step of structuring. This is where professionals like us can offer our expertise and guide the corporates in putting together a structure, which is tax-optimum and legally compliant.

Inbound Investments:

• Advising on entry strategies and evolving optimal ownership/jurisdiction structures for investment in India.
• Advising on entity structuring for selecting an optimal entry vehicle such as a branch, subsidiary, joint venture, to name a few.
• Assistance in filing/obtaining necessary regulatory approvals including those from the Reserve Bank of India, the Foreign Investment Promotion Board, Government of India and other Regulatory Authorities.
• Incorporation/registration of entry vehicle.
• Advisory/compliances associated with other mode of inbound investments such as foreign institutional investors, venture capital funds, etc.

Outbound investments:

• Advising on cross border investment strategies and evolving optimal ownership/jurisdiction structures for investment into a particular jurisdiction which include setting up an international holding company, global sales company, etc.
• Advising and assistance on entity structuring, capital structuring and regulatory approval process in selected jurisdiction.
• Assistance in finalizing/review of shareholders, joint venture and other relevant business agreements.
• Striving to enhance tax credit and income deferral in India, mergers, acquisitions and due diligences.

Services for FIIs:

• A foreign financial institution must register as a Foreign Institutional Investor (FII) with the shares and Exchange Board of India (SEBI) in India if it plans to invest in Indian company shares on the Indian stock market.
• We help clients find the foreign tax concerns that affect ongoing investment transactions and the investment structure.

Due to the disparities between domestic and DTAA law, international transactions and agreements are more likely to be litigated. Therefore, before engaging in any kind of transaction or arrangement, tax advice should be obtained in order to prevent litigation and future tax burden.

Services:

• Providing opinions with respect to DTAA and Domestic Law