Transfer Pricing

Transfer Pricing

Transfer pricing refers to the rules and methods for pricing transactions between enterprises under common ownership or control. Due to the potential for cross-border controlled transactions to distort taxable income, tax authorities in many countries have the power to adjust intra-group transfer prices that deviate from what would have been charged by unrelated enterprises dealing at arm’s length.

In India, a separate code on transfer pricing is covered under Sections 92 to 92F of the Income Tax Act, 1961 (the Act). This code applies to intra-group cross-border transactions from 1 April 2001 and to specified domestic transactions from 1 April 2012.

•  Advisory and Audit relating to transfer pricing as per Income Tax Act.

• Issuance of Transfer pricing Report / transfer pricing certification (Form 3 CEB).

• Preparation of detail documentation relating to international and specified domestic transactions under transfer pricing as per Income Tax Act.

• Transfer pricing study/advisory for new transaction or specified transactions such as intangibles, Loans & Guarantee, Intra Group services, R&D centers, Purchase and sale of marketable securities etc.