Transfer Pricing
Transfer Pricing Advisory helps businesses comply with arm’s length pricing rules for inter-company transactions, minimizing tax risks and regulatory scrutiny.
Types Of Transfer Pricing
These services can be divided based on scope of review.
Policy Development
Establishing transfer pricing policies aligned with global and domestic regulations.
Benchmarking Analysis
Determining arm’s length prices using OECD and Indian standards.
Documentation Support
Preparing comprehensive TP reports for tax authorities.
Audit & Controversy Support
Representing clients during TP audits and disputes.
Advance Pricing Agreements (APA)
Structuring APAs to lock pricing mechanisms with authorities.
Cross-Border Advisory
Ensuring compliance for international transactions and intercompany agreements.
Why Transfer Pricing Is Important?
Regulatory Compliance
Adheres to Income Tax and OECD guidelines.
Risk Management
Minimizes penalties and litigation risk.
Documentation Expertise
Maintains complete records for audits.
Valuation Support
Provides accurate pricing methods for transactions.
FAQs
What is Transfer Pricing?
It regulates pricing of intercompany transactions to ensure fair taxation.
Who needs it?
Companies engaged in domestic and international intercompany transactions.
Is documentation mandatory?
Yes, TP documentation is required under Income Tax rules.
What are APAs?
Agreements with tax authorities to pre-fix pricing methods.
Can it reduce tax disputes?
Yes, proper TP compliance minimizes risks of adjustments and penalties.
Why is advisory important?
Ensures regulatory compliance and avoids penalties.