Transfer Pricing Advisory
983399
*The price is exclusive of any amount payable to Government/Regulatory Authorities and GST.
Our Expert will provide consultation relating to your Transfer Pricing Queries
Price
999
Services covered :
- Consult with our expert regarding transfer pricing
FAQ ()
Question :
What is transfer pricing?
Answer :
In layman terms, transfer price is the price at which one party transfers its products or services.
Transfer pricing regulations and compliances were introduced to ensure that global related parties conduct their business in a manner that there is no base erosion or profit shifting. Accordingly, every tax jurisdiction gets its due taxes.
To understand transfer pricing compliance in a simple manner, the related parties transacting, need to ensure that they conduct business in such a manner as if they’d be dealing with an unrelated party in an uncontrolled scenario, i.e., at arm’s length.
Question :
What does a transfer pricing consultant deliver?
Answer :
A transfer pricing consultant provides value for clients in three distinct ways:
1) ensuring compliance with transfer pricing guidelines,
2) providing guidance in planning and optimizing transfer pricing policies, and
3) assisting with dispute resolution.
Question :
What is meant by Arm's Length Price?
Answer :
Arm's length price simply means a price which is charged to unrelated parties in the open market.
Question :
What are the different methods to calculate the arm’s length price?
Answer :
The various procedures to calculate the arm’s length price with respect to an international transaction are the following.
1. Transactional net margin procedure
2. Resale price procedure
3. Comparable uncontrolled price procedure
4. Cost plus procedure
5. Profit split procedure.
Question :
Is transfer pricing applicable in domestic transactions?
Answer :
The following transactions where, the aggregate value of domestic transaction entered into by related parties exceeds Rs.20 crore, then transfer pricing is applicable.
1. Any transaction referred to in sec 80IA(8) and sec 80IA(10)
2. Any transaction referred in Sec 80A
3. Any transaction referred in any other section under VIA or Section 10AA to which provision of 80-IA (8)/(10) are applicable
4. Any business transacted between the persons referred to in sec 115 BAB
5. Any other transaction as may be prescribed.
Question :
What are the penalty provisions in transfer pricing?
Answer :
1. Failure to maintain/furnish documents or failure to report a transaction or fails to maintain/furnish correct info or document- 2% of transaction value
2. Failure to furnish master file- Rs.5 lacs
3. Failure to furnish form 3CEB- Rs.1 lac
4. Failure to report any transaction would constitute ' misreporting of income' - 200% of taxes apply.
