Domestic Transfer Pricing
|
|
- Harry Hill
- 6 years ago
- Views:
Transcription
1 Domestic Transfer Pricing Ameya Kunte 20 March 2015
2 Contents Background why domestic TP? SC observations in Glaxo ruling Amendments by Finance Act, 2012 Domestic TP Framework SDT and International Transaction Related party payments u/s 40A(2) Case studies Compliance provisions Penalty Arm s length under Companies law and Cost Accounting records 2
3 Need for Coverage Scenario 1 Particulars Co. A Co. B Taxed in 33% 33% Sales to RP Other Income Purchases from RP Other Expenses Profit/Loss (100) 100 Tax - 33 Scenario 2 Particulars Co. A Co. B Taxed in 33% 33% Sales to RP Other Income Purchases from RP Other Expenses Profit/Loss (50) 50 Tax - 17 Domestic Transactions resulting in tax base erosion/deferral Use of loss making units and tax holiday entities 3
4 Domestic Transfer pricing new? Disallowance of excessive / unreasonable expenditure u/s 40A(2)(b) Fair value Legitimate needs of the business Benefits test Conditions u/s 80IA (8)/(10) in case of tax holiday units Ordinary profits 4
5 Domestic Transfer pricing new? Immovable property transfers u/s 50C / 43CA and Sec 56 Use of stamp duty valuation / fair valuation Cost of acquisition of depreciable assets where higher cost is used with the objective of reduction of tax liability explanation to Sec 43(1) Value of any benefit or perquisite derived from exercise of business or profession Sec 28(iv) 5
6 SC observations in Glaxo ruling SC ruling of July 2010 Domestic transactions between related entities will not be revenue neutral if Profit shifted from profitable entity to loss-making entity Tax arbitrage on transactions between related units due to difference in tax rates E.g. shifting of profits from non-sez unit to SEZ unit SC recommends amendments to provisions like Sec 40A (2) and Sec 80IA(10) to empower AO to make adjustments to the income having regard to the fair market value of the transactions between the related parties 6
7 SC observations in Glaxo ruling The AO may thereafter apply any of the generally accepted methods of determination of arm's length price, including the methods provided under Transfer Pricing Regulations One of the suggestions which needs consideration is whether the law should be amended to make it compulsory for the taxpayer to maintain Books of Accounts and other documents in line with Rule 10D and whether the assessee should be required to obtain an audit report from CA 7
8 Amendments by Finance Act, 2012 Finance Act, 2012 introduced TP provisions to specified domestic transactions (SDT) Memorandum to Finance Bill: Proposals in line with SC decision in Glaxo Smithkline [TS-47-SC-2010-TP] Objectives as per Memorandum Bring in objectivity in determination of income/reasonableness of expenditure arising from domestic related party transaction Legally enforceable obligation on assessee to maintain documentation Monetary threshold of aggregate transactions of Rs. 5 Cr for avoiding unnecessary compliance & administrative burden 8
9 Domestic TP - Framework Applicability Implications Undertakings to which incentive deductions are provided (e.g. 10AA, 80-IA, 80-IB), covering: inter-unit transfer of goods and services; and transactions between entities having close connection Expenditure for which payment made to related parties defined u/s 40A(2) Aggregate transaction value exceeds Rs. 5 / 20 Cr in a financial year These transactions have to be undertaken at arm s length price by selecting most appropriate method Maintain contemporaneous documentation Report transaction in the Accountant s Report Any other transaction that may be specified Penalty of 2% on transactions value each for failure to report / maintain or furnishing documentation 9
10 SDT Value threshold SDT provisions applicable only if aggregate of all SDT during relevant previous year exceeds Rs 5 cr (upto FY ) Finance Bill 2015 proposes to increase the value-threshold from Rs 5 cr to Rs 20 cr Memorandum on Finance Bill 2015 In order to address the issue of compliance cost in case of small businesses on account of low threshold of five crores rupees, it is proposed to amend section 92BA to provide that the aggregate of specified transactions entered into by the assessee in the previous year should exceed a sum of twenty crore rupees for such transaction to be treated as specified domestic transaction. This amendment will take effect from 1st April, 2016 and will, accordingly, apply in relation to the assessment year and subsequent assessment years. 10
11 SDT Definition Sec.92BA Transactions covered: Expenditure in respect of which payment has been made or is to be made to a person covered u/s 40A(2)(b); Any transaction referred to in Sec. 80A inter-unit transfers; Any transfer of goods or services referred in Sec 80IA(8) inter-unit transfer; Any business transacted between the assessee and other person referred in 80-IA(10) Transactions between connected persons; Any transaction, referred in Chapter VIA or Sec 10AA, to which provisions of Sec. 80-IA(8) or (10) apply; and Any other transaction as may be prescribed 11
12 Persons covered u/s 40A(2) Company Director / his Relatives Hindu Undivided Family Member / his Relative Association of Persons Member / his Relative Partnership firm Partners / his Relatives Individual Relative Any individual (or his relative) who has substantial interest in the assessee s business / profession. Any company (or director), firm (or partner), AoP / HUF (or member) or their relatives who has substantial interest in the assessee s business / profession including company in which such company is holding substantial interest Any company, firm, AOP or HUF if director/partner/ member of which has substantial interest Other director/partner/ members of such entities Any person in whose business / profession, assessee or his relative has substantial interest. 12
13 Related party payments u/s 40A(2) Relative husband, wife, brother, sister or any lineal ascendant or descendant of the individual Substantial Interest In case of Companies 20% control on voting power In case of other entities 20% share in profits Provision cover payment and compliance required for party making payment Whether 20% threshold needs to be examined qua an individual director or qua all directors put together? 13
14 Case Study - Direct vs. indirect ownership Whether beneficial ownership includes direct as well as indirect shareholdings? ICAI Revised Guidance Note (2013) A A X X Y Y 14
15 ICAI Guidance Note Para 4A.16 However, Explanation to Section 40A(2) deems a person to have substantial interest if such person is beneficial owner of shares carrying not less than twenty per cent of voting power. The expression beneficial owner needs to be construed in contrast to legal owner and not in the context of determining indirect ownership of shares. Hence, the emphasis is on covering the real owner of the shares and not the nominal owner. This proposition is also supported by legal jurisprudence which states that in a multitier structure, a parent cannot be regarded as the beneficial owner of shares in a downstream subsidiary merely because it owns the shares of the intermediate subsidiary companies. It is important to respect the fact that the entities are separate legal entities. In other words, for purposes of Section 40A(2)(b), it may be appropriate to consider only direct shareholding and not derivative or indirect shareholding. 15
16 International transaction vs SDT International Transaction Covers both income and expense transactions Substantial interest for international transaction - AE threshold 26% APA, Safe Harbour framework available Deemed Transaction concept applicable Specified Domestic Transaction u/s 40A(2) only expenditure is covered. u/s 80A(6)/ 80-IA(8)/80- IA(10)/section 10AA, both expense/ profits from transactions are covered Substantial interest threshold of 20% APA, Safe Harbour framework not applicable Deemed Transactions concept not applicable 16
17 Case Study cross border transactions Entity A (Indian Company) 23% Import (Purchase) of goods Entity B (US Company) Will this transaction qualify as International transaction or specified domestic transaction? 17
18 Case Study non-resident transactions Whether SDT will get triggered if both parties to the transaction are non-resident? Entity A (Foreign Company) Outside India Director of Foreign Company India Salary PE in India 18
19 Related party payments u/s 40A(2) Illustration on transactions covered Expenditure on buying goods Expenditure on procurement of services Expenditure on interest payments Expenditure on salary, training services, marketing expenses Expenditure on purchase of tangible and intangible property Director s remuneration, commission, sitting fees Group charges Reimbursement expenditure Guarantee fee expenditure 19
20 SDT applicability Trade discount- not an expenditure 40A(2) not applicable United Exports [333 ITR 549 (Del)] Grandpix [128 TTJ 60(Delhi)] Sales to sister concern/income from sister concern CIT v. Glaxo Smithkline Asia (P) Ltd [TS-47-SC-2010-TP], Udhoji Shrikrishnadas [TS-1-HC-1980(MP)-TP], A. K. Subbaraya Chetty & Sons [TS- 1-HC-1979(MAD)-TP], Durga Rice & Gen Mills [TS-446-ITAT-2012(CHANDI)], CIT v. Rajnish Ahuja [(TS-116-HC-2013(P & H))] Capital expenditure - Depreciation / investment allowance? Nectar Beverages [TS-110-SC-2009], Vishnu Anant Mahajan [TS-396-ITAT- 2012(Ahd)] (on 14A) depreciation is allowance not an expenditure Payment to partners payments covered u/s 40(b) - Yoganand Textile [202 ITR 869 (Guj)], Ganesh Factory [180 ITR 416 (P&H)] 20
21 Case Study - Intra group funding Situation 1 Entity A (Indian Company) Loan given Interest Paid 12 % (ALP at 8%) Tax Holiday entity Situation 2 Entity A (Indian Company) Guarantee given No fee paid (ALP at 8%) Tax Holiday entity 21
22 Director remuneration Benchmarking difficult - payments by other companies to their directors will represent controlled transactions. Difficulty in finding uncontrolled transactions for comparability Revenue neutrality situation Use of 6 th method for TP benchmarking 22
23 Relevant provisions Sec 92C and Rule 10B & 10AB Sec. 92CA(2) Sec 92D and Rule 10D Sec 92E and Rule 10E Six methods for computing ALP Safe harbour provisions applicable Reference to TPO Extended assessment timelines apply Maintenance of Contemporaneous Documentation Accountant s Report Form 3CEB in electronic form to be filed before due date 23
24 Reference to TPO For international transactions, AO must mandatorily refer all transactions to TPO if value exceeds Rs. 15 crores CBDT may issue suitable instruction for specified domestic transactions. TPO s powers to determine ALP of Transaction not referred by AO ( restricted to international transaction) SDT not covered Transaction not disclosed in Form 3CEB SDT not covered [Sec 92 CA (2B)] 24
25 Penalty Sec 271AA Sec 271BA Sec 271G 2% of transaction value for: failure to maintain prescribed documents or information. failure to report any specified domestic transaction which is required to be reported. maintaining/ furnishing incorrect information/ documents. Penalty of Rs. 1 lakh for failure to furnish accountant s report u/s 92E 2% of transaction value for failure to furnish information / documents as required u/s Sec 92D(3). Concealment penalty u/s 271(1)(c) 100%- 300% of tax sought to be evaded also applicable to SDT 25
26 Arm s length - Company Law New Companies Act has introduced arm s length concept for related party transactions (RPT) Various approvals required from Board of Directors/ shareholders not applicable if the RPT entered on arm s length basis & in ordinary course of business Company not prohibited from entering into RPT which is not on arm s length basis, but Board of Directors required to give justification for every transaction Related party transactions disclosure in cost audit report under the Companies (Cost Audit Report) Rules 2011 Report requires disclosure of transfer price, normal price and basis adopted to determine normal price Non disclosure of normal price and basis amounts to incomplete information 26
27 Case Study Scope of Sec 92BA Can Sec 92BA invoked independent of Sec 40A(2) disallowance? 27
28 Case Study Work in Progress SPV (subsidiary) set up to construct a road project. SPV sub-contracts part work to holding company on EPC basis. EPC work done by the holding company shown as CWIP as the construction is not yet completed. Advances have been issued by SPV to Holding Company. Domestic TP if no deduction claimed during the year? Unique wording of Sec 80IA(10) 28
29 Case Study Cost allocation Should the common Head office costs be allocated between units? If yes, whether mark-up should be charged on it? 29
30 Case Study Inter Unit Transfer In case goods/services are transferred between 2 tax holiday units of the same entity? Will it require reporting in Form 3CEB? 30
31 Thank you 31
32 Section 40A(2) Where the assessee incurs any expenditure in respect of which payment has been or is to be made to any person referred to in clause (b) of this sub-section, and the Assessing Officer is of opinion that such expenditure is excessive or unreasonable having regard to the fair market value of the goods, services or facilities for which the payment is made or the legitimate needs of the business or profession of the assessee or the benefit derived by or accruing to him therefrom, so much of the expenditure as is so considered by him to be excessive or unreasonable shall not be allowed as a deduction. Provided that no disallowance, on account of any expenditure being excessive or unreasonable having regard to the fair market value, shall be made in respect of a specified domestic transaction referred to in section 92BA, if such transaction is at arm s length price as defined in clause (ii) of section 92F. Slide 10 32
33 Section 92 Section Heading : Computation of income from international transaction having regard to arm s length price. Sec 92 (2A): Any allowance for an expenditure or interest or allocation of any cost or expense or any income in relation to the specified domestic transaction shall be computed having regard to the arm s length price. Sec 92 (3) The provisions of this section shall not apply in a case where the computation of income under sub-section (1) or sub-section (2A) or the determination of the allowance for any expense or interest under sub-section (1) or sub-section (2A), or the determination of any cost or expense allocated or apportioned, or, as the case may be, contributed under sub-section (2) or subsection (2A), has the effect of reducing the income chargeable to tax or increasing the loss, as the case may be, computed on the basis of entries made in the books of account in respect of the previous year in which the international transaction or specified domestic transaction was entered into. 33
34 Section 92BA For the purposes of this section and sections 92, 92C, 92D and 92E, specified domestic transaction in case of an assessee means any of the following transactions, not being an international transaction, namely: (i) any expenditure in respect of which payment has been made or is to be made to a person referred to in clause (b) of sub-section (2) of section 40A. (ii) any transaction referred to in section 80A; (iii) any transfer of goods or services referred to in sub-section (8) of section 80-IA; (iv) any business transacted between the assessee and other person as referred to in subsection(10) of section 80-IA; (v) any transaction, referred to in any other section under Chapter VI-A or section 10AA, to which provisions of sub-section (8) or sub-section (10) of section 80-IA are applicable; or (vi) any other transaction as may be prescribed, and where the aggregate of such transactions entered into by the the previous year exceeds a sum of five crore rupees. assessee in 34
35 Section 80IA(8) (8) Where any goods or services held for the purposes of the eligible business are transferred to any other business carried on by the assessee, or where any goods or services held for the purposes of any other business carried on by the assessee are transferred to the eligible business and, in either case, the consideration, if any, for such transfer as recorded in the accounts of the eligible business does not correspond to the market value of such goods or services as on the date of the transfer, then, for the purposes of the deduction under this section, the profits and gains of such eligible business shall be computed as if the transfer, in either case, had been made at the market value of such goods or services as on that date : Provided that where, in the opinion of the Assessing Officer, the computation of the profits and gains of the eligible business in the manner hereinbefore specified presents exceptional difficulties, the Assessing Officer may compute such profits and gains on such reasonable basis as he may deem fit. Explanation. For the purposes of this sub-section, market value, in relation to any goods or services, means (i) the price that such goods or services would ordinarily fetch in the open market; or (ii) the arm s length price as defined in clause (ii) of section 92F, where the transfer of such goods or services is a specified domestic transaction referred to in section 92BA.] 35
36 Section 80IA(10) (10) Where it appears to the Assessing Officer that, owing to the close connection between the assessee carrying on the eligible business to which this section applies and any other person, or for any other reason, the course of business between them is so arranged that the business transacted between them produces to the assessee more than the ordinary profits which might be expected to arise in such eligible business, the Assessing Officer shall, in computing the profits and gains of such eligible business for the purposes of the deduction under this section, take the amount of profits as may be reasonably deemed to have been derived therefrom: Provided that in case the aforesaid arrangement involves a specified domestic transaction referred to in section 92BA, the amount of profits from such transaction shall be determined having regard to arm s length price as defined in clause (ii) of section 92F. 36
Domestic Transfer Pricing Provisions
Domestic Transfer Pricing Provisions Ameya Kunte April 4, 2014 ameya.kunte@taxsutra.com Contents Background why domestic TP? SC observations in Glaxo ruling Amendments by Finance Act, 2012 Domestic TP
More informationCONTENT. Mulund CPE Study Circle of ICAI. Domestic Transfer Pricing Applicability & Overview 15/6/2013. CA Paras K Savla
Mulund CPE Study Circle of ICAI Domestic Transfer Pricing Applicability & Overview 15/6/2013 CA Paras K Savla CONTENT Introduction Specified domestic transactions Illustrations Procedures ALP under other
More informationSpecified Domestic Transactions Coverage and Analysis. S P Singh
Specified Domestic Transactions Coverage and Analysis S P Singh August 2012 Introduction The Finance Act 2012, extends the scope of Transfer Pricing provision to Specified Domestic Transactions ( SDT )
More informationWorkshop on Basics in Transfer Pricing. Domestic Transfer Pricing By
Workshop on Basics in Transfer Pricing Domestic Transfer Pricing By CA Praveen Ranka Introduction SDT The Intent The Finance Act, 2012 extended applicability of transfer pricing provisions to Specified
More informationDomestic Transfer Pricing
Domestic Transfer Pricing By CA Nihar Jambusaria Central Council Member ICAI {Mumbai} Overview Transfer pricing (referred to as TP) regulations introduced in India in 2001, previously covered only cross
More informationSPECIFIED DOMESTIC TRANSACTION SECTION 40a(2) -Nihar Jambusaria
SPECIFIED DOMESTIC TRANSACTION SECTION 40a(2) -Nihar Jambusaria TP Regulations to apply to certain Specified Domestic Transactions [New Section 92BA] TP provisions are applicable to the following Domestic
More informationB S R & Co. LLP. Specified Domestic Transactions. Pankil Sanghvi Director. 10 October 2015
Specified Domestic Transactions B S R & Co. LLP Pankil Sanghvi Director 10 October 2015 1 Background Genesis of Domestic Transfer Pricing Regulations Supreme Court (SC) in the case of CIT v Glaxo SmithKline
More information(Applicability & impact Analysis) By:-
Domestic Transfer Pricing (Applicability & impact Analysis) By:- Surana Maloo & Co. Chartered Accountants 2 nd Floor, Aakash Ganga Complex, Parimal Under Bridge, Nr Suvidha Shopping Center, Paldi, Ahmedabad-
More informationIssues in Domestic Transfer Pricing including various methods for determining ALP
Issues in Domestic Transfer Pricing including various methods for determining ALP Rakesh Alshi, Anand Thacker - 6 th October 2014 2014 Deloitte Haskins & Sells LLP 1 Contents 1. Specified Domestic Transactions
More informationTransfer Pricing of Domestic Transactions & Provisions of. or Complimentary. 7 December 2013 Rajan Vora
Transfer Pricing of Domestic Transactions & Provisions of Section 40A(2)(b) Contradictory or Complimentary 7 December 2013 Rajan Vora Outline Rationale for introducing transfer pricing Brief background
More informationINSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA DOMESTIC TRANSFER PRICING PROVISIONS CA.T. P. OSTWAL 21st September 2012 1 Introduction TP was earlier limited to International Transactions The Finance Act
More informationDOMESTIC TRANSFER PRICING. By CA Ramesh S Iyer
DOMESTIC TRANSFER PRICING By CA Ramesh S Iyer 04-08-2013 1 Reasons for introduction The SC in the case of CIT vs. Glaxo Smithkline Asia Pvt Ltd [2010]195Taxman 35(SC) recommended introduction of domestic
More informationCA TIRTHESH M. BAGADIYA
DOMESTIC TRANSFER PRICING CA TIRTHESH M. BAGADIYA 1 1 Introduction Previously TP applicable only to international transactions By virtue of Finance Act, 2012, TP provision ambit has been extended to Specified
More informationSpecific Domestic Transactions. Documentation & Audit Report Requirements Key concern Areas. 22 November 2013
Specific Domestic Transactions Documentation & Audit Report Requirements Key concern Areas 22 November 2013 Agenda Requirements at glace Key issues relating to applicability to various entities Transactions
More informationCONTENTS. Introduction to Transfer Pricing. Transfer Pricing Litigation Statistics. Introduction to Domestic Transfer Pricing
DOMESTIC TRANSFER PRICING CONTENTS Introduction to Transfer Pricing Transfer Pricing Litigation Statistics Introduction to Domestic Transfer Pricing Section 40A(2)(b), 80IA(8) & 80IA(10) Relationships,
More informationDomestic Transfer Pricing
Domestic Transfer Pricing September 15, 2012 CA Darpan Mehta Agenda 1 Domestic TP Transactions 2 Case Study 3 Way Forward Slide 2 Transactions Slide 3 Intent of Indian Transfer Pricing (TP) Regulations
More informationDomestic Transfer Pricing in India
Domestic Transfer Pricing in India By (Partner) SBR & CO. Chartered Accountants P a g e 1 After the grand success of International Transfer pricing, through which huge transfer pricing orders slapped on
More informationTransfer Pricing Law
Transfer Pricing Law 1 Presentation Compiled By Akshay Kenkre Gaurav Garg Tejas Dharwadkar What is Transfer Pricing What is Transfer Price? A Price at which one person transfers physical goods, services,
More informationSeptember 1, By: CA. Gaurav Garg
September 1, 2012 By: CA. Gaurav Garg Transfer pricing bleeding ground for the corporate but breeding ground for consultants Transfer pricing addition in first six years equal to addition made addition
More informationDomestic Transfer Pricing (India)
Domestic Transfer Pricing (India) After the grand success of International Transfer pricing, through which huge transfer pricing orders slapped on companies with cross-border operations in the last financial
More informationOverview of Transfer Pricing Regulations. CA Akshay Kenkre
Overview of Transfer Pricing Regulations CA Akshay Kenkre 1 What is Transfer Pricing What is Transfer Price? A Price at which one person transfers physical goods, services, tangible or/ and intangibles
More informationDOMESTIC TRANSFER PRICING REGULATIONS
DOMESTIC TRANSFER PRICING REGULATIONS (Taxation of specified domestic transactions in India) By B. D. Jokhakar & Co. Chartered Accountants INDIA TABLE OF CONTENTS Sr. No. Topic Page no. I INTRODUCTION
More informationApplicability of Transfer Pricing to Specified Domestic Transactions
Applicability of Transfer Pricing to Specified Domestic Transactions Outline Introduction Overview of provisions Analysis of provisions Impact on taxpayers Way forward & EY approach Page 2 Abbreviations
More informationBY CA MAYUR B NAYAK 1
BY CA MAYUR B NAYAK 1 Govt. should collect taxes from citizens the way a Bee collects Honey from the flowers - quietly without inflicting pain". -Chanakya BY CA MAYUR B NAYAK 2 Financial Year Transfer
More informationDOMESTIC TRANSFER PRICING
12 October 2014 WIRC of ICAI: J B Nagar CPE Study Circle INTRODUCTION [ 3] COVERAGE & IMPLICATIONS [ 8] DOCUMENTATION & CERTIFICATION [15] ISSUES & CASE STUDIES [29] KEY TAKEAWAYS [40] Page 2 Introduction
More informationTRANSFER PRICING IN INDIA DOMESTIC TRANSACTION AN ADDED DIMENSION For Jallandhar Branch Of NIRC Of. By: CA Krishan Vrind Jain Dated 08/08/2013
TRANSFER PRICING IN INDIA DOMESTIC TRANSACTION AN ADDED DIMENSION For Jallandhar Branch Of NIRC Of ICAI By: CA Krishan Vrind Jain Dated 08/08/2013 Finance Minister s speech on the rational for introducing
More informationOverview of Transfer Pricing
Overview of Transfer Pricing Contents Legislative framework Transfer pricing study Assessment and Litigation Key Recent Developments Page 2 Transfer Pricing in India- Background April 1, 2001 onwards Comprehensive
More informationRELATED PARTY TRANSACTIONS- HARMONISING AND REPORTING UNDER VARIOUS STATUES
RELATED PARTY TRANSACTIONS- HARMONISING AND REPORTING UNDER VARIOUS STATUES - By CA Niketa Agarwal niketa@sjaykishan.com The Related Party Transactions (RPTs) are under heightened watch of various regulators
More informationTRANSFER PRICING - DOMESTIC TRANSACTIONS AN INSIGHT GAURAV SHAH OCTOBER 2012
1 TRANSFER PRICING - DOMESTIC TRANSACTIONS AN INSIGHT GAURAV SHAH OCTOBER 2012 Table of Contents Introduction to Transfer Pricing International Transfer Pricing Background Domestic Transfer Pricing Differences
More informationAn overview of Transfer Pricing
An overview of Transfer Pricing WIRC of ICAI Vispi T. Patel Vispi T. Patel & Associates 19 th June, 2013 Agenda Transfer Pricing Origin, Evolution and Basic Concepts TP Indian Perspective Indian Transfer
More informationDOMESTIC TRANSFER PRICING
17 November 2013 WIRC of ICAI: J B Nagar CPE Study Circle INTRODUCTION [ 3] COVERAGE & IMPLICATIONS [ 8] DOCUMENTATION & CERTIFICATION [15] ISSUES & CASE STUDIES [29] KEY TAKEAWAYS [40] Page 2 Introduction
More informationTRANSFER PRICING. 19 th July, July-14 1
TRANSFER PRICING 19 th July, 2014 19-July-14 1 TRANSFER PRICING AND ITS FUTURE PROSPECTS Due to the increasing trend in globalization of Indian business, transfer pricing will remain foremost on the agenda
More informationTransfer Pricing in India Examining inter-company cross-border transactions
Transfer Pricing in India Examining inter-company cross-border transactions 1 Contents Background and history Meaning of International transaction Specified Domestic Transaction Arm s Length Price Associated
More informationAn overview of Transfer Pricing
An overview of Transfer Pricing WIRC of ICAI Vispi T. Patel 19th June, 2013 Agenda Transfer Pricing Origin, Evolution and Basic Concepts TP Indian Perspective Indian Transfer Pricing Regulations v OECD
More informationAudit of Domestic Transfer Pricing
Audit of Domestic Transfer Pricing Prakash Udeshi B.Com, FCA, CS, CMA KALARIA & SAMPAT Chartered Accountants Ahmedabad Applicability - SDT The Finance Act 2012 extended the scope of Transfer Pricing provision
More informationFuture of TP. Documentation & Certification. 7th October Presented by- CA Dilip Gupta
Future of TP Documentation & Certification 7th October 2017 Presented by- CA Dilip Gupta Journey of TP regulations in India Major Milestones Final Rules on Range and multiple year data concept Introduction
More informationThe Chamber of Tax Consultants
The Chamber of Tax Consultants Case Studies on Domestic Transfer Pricing w.r.t section 80A/80IA/10AA including its bench marking Presentation by Yogesh Thar April 29, 2016 1 Genesis of Transfer Pricing
More informationTransfer Pricing Backdrop in. Glimpse on International Transactions CA Utpal Doshi and CA Harshil Shah 9 October, 2016
Transfer Pricing Backdrop in India Glimpse on International Transactions CA Utpal Doshi and CA Harshil Shah 9 October, 2016 Presentation Outline Introduction ti Transfer Pricing Regulations in India Arms
More informationd e vreser st ighr lla
Article 7 and 9 of the model conventions including International and Domestic TP Beginners Study Course on International Taxation July 4, 2015 Neha Arora 2 Contents Article 7 of the Model Convention Approaches
More informationTransfer Pricing Theory & Practice CA Hari Om Jindal October 7, 2017
Transfer Pricing Theory & Practice CA Hari Om Jindal (hojindal@yahoo.co.in) October 7, 2017 Nothing in this paper should be construed or treated as legal advice. Whilst we endeavor to ensure that the information
More informationCHANGES IN 3CD TAX AUDIT REPORT FOR THE A.Y
CHANGES IN 3CD TAX AUDIT REPORT FOR THE A.Y. 2013-2014 AMENDMENTS IN FINANCE ACT, 2012 HAVING IMPACT ON TAX AUDIT REPORT Rule 12 From A.Y. 2013-14 inter-alia e-filing of Audit Reports u/s. 44AB (Tax Audit
More informationTransfer Pricing Audit and Issuance of Form 3CEB. Kedar Karve 10 October 2015 Application No. 65
Transfer Pricing Audit and Issuance of Form 3CEB Kedar Karve 10 October 2015 Application No. 65 0 Contents 1 2 3 4 5 Brief Overview of Transfer Pricing Regulations in India Section 92E of Income-tax Act,
More informationPBGP Disallowances An insight of the Indian Tax Laws
PBGP Disallowances An insight of the Indian Tax Laws Contents Slide 2 Introduction Slide 3 Introduction on primarily include different types of expenditure which are not permissible to be reduced while
More informationIssues in Transfer Pricing
Issues in Transfer Pricing Vaishali Mane Chartered Accountant, Mumbai 2017 Grant Thornton India LLP. All rights reserved. 1 Contents 1 Transfer Pricing - Basic 2 Recent Developments in Transfer Pricing
More informationTotal turnover/ Gross receipts 30% 30% of FY > Rs 50 Cr No change in rate of Surcharge
1. Income Tax Rates: Category of Income New rate of tax Old rate Taxpayer for FY 2017-18 of tax Individuals/ Upto Rs 2.5 L Nil Nil HUF/ BOI/ Rs 2.5 to 5 L 5% 10% AOP/ Rs 5 to 10 L 20% 20% Artificial Above
More informationTransfer Pricing compliances, Litigation update and Dispute resolution. - CA Mithilesh
Transfer Pricing compliances, Litigation update and Dispute resolution - CA Mithilesh 09553111131 Overview Concept and Rationale of TP Applicability International Transaction Meaning of Associated Enterprise
More informationWIRC INTENSIVE COURSE ON TRANSFER PRICING
1 WIRC INTENSIVE COURSE ON TRANSFER PRICING (From 1.08.2011 to 12.08.2011) I. INTRODUCTION What is Transfer Pricing? OVERVIEW OF TRANSFER PRICING By Nilesh Patel; Ex-IRS Officer, CPA(USA) Ph: 9819060323
More informationTRANSFER PRICING. By Yethi Remella
TRANSFER PRICING By Yethi Remella 1. INTRODUCTION 2. INCOME TAX ACT, SECTION 92 3. FORM 3CEB Introduction What is Transfer Pricing? What is the Importance of TP in Income Tax? Transfer Pricing - Term Costing
More informationT. P. Ostwal & Associates (Regd.) Key Budget Proposal Budget 2012 CHARTERED ACCOUNTANTS
IMPORTANT AMENDMENTS & MAJOR DIRECT TAX PROPOSALS IN FINANCE BILL, 2012 CORPORATE TAX No change in the head corporate tax. Extension of sunset date for tax holiday for power sector to 2013; Initial depreciation
More informationThe Chamber of Tax Consultants
The Chamber of Tax Consultants 3 rd Domestic Transfer Pricing Conference Tax incentives and domestic transfer pricing Sanjay Kapadia Assisted by Nisha Shah 19 October 2013 Meaning of Specified Domestic
More informationTRANSFER PRICING IN INDIA A REVENUE PERSPECTIVE
TRANSFER PRICING IN INDIA A REVENUE PERSPECTIVE A PRESENTATION BY AKHILESH RANJAN DIRECTOR OF INCOME TAX (INTERNATIONAL TAXATION), NEW DELHI 02.12.2005 HISTORICALLY Concept of transfer pricing always there
More informationAn overview of Transfer Pricing
An overview of Transfer Pricing CTC Vispi T. Patel Vispi T. Patel & Associates Agenda Transfer Pricing Origin, Evolution and Basic Concepts TP Indian Perspective Indian Transfer Pricing Regulations v OECD
More informationDid you know! Transactions M.2 Safe harbour rules M.3 Dispute resolution panel
M Transfer pricing Doing business in India 209 Did you know! India has emerged as the world s number one, along with the US, in annual solar power generation. In wind power production, when it comes to
More informationTransfer Pricing Perspective Pharmaceuticals Industry 20 September 2014
www.pwc.in Transfer Pricing Perspective Pharmaceuticals Industry 20 Contents Transfer Pricing environment Key TP Issues Recent Developments Best Practices Slide 2 Transfer Pricing Environment Slide 3 Global
More informationDomestic Transfer Pricing
Table of Contents DOMESTIC TRANSFER PRICING Benchmarking and Reporting requirements Study Circle Meeting CA Gaurav Shah 15 th June 2013 Domestic Transfer Pricing Benchmarking Analysis Transfer Pricing
More informationSharing insights. News Alert 20 March, Key amendments in TP Regulations by the Union Budget Introduction of Advance Pricing Agreement
www.pwc.com/in Sharing insights News Alert 20 March, 2012 Key amendments in TP Regulations by the Union Budget 2012 The Finance Minister presented the Finance Bill 2012 (Finance Bill) in the Parliament
More informationJGARG. Tri Nagar Keshav Puram Study Circle Of North India Regional Council. By: CA. Gaurav Garg. Economic Advisors
JGARG Economic Advisors Tri Nagar Keshav Puram Study Circle Of North India Regional Council By: CA. Gaurav Garg Compliance Requirement Information/ Document Penalties JGarg Economic Advisors Pvt. Ltd.
More informationUnion Budget 2014 Analysis of Major Direct tax proposals
RATES OF INCOME TAX Union Budget 2014 Analysis of Major Direct tax proposals Basic exemption limit has been increased from Rs 2 lacs to Rs 2.50 lacs for resident individuals or HUF. Income slabs Income
More informationTransfer Pricing - Filing of Form 3CEB & Practical Issues November 11, CA Vikram R. B.Com., FCA.
12 November 2014 Transfer Pricing - Filing of Form 3CEB & Practical Issues November 11, 2017 CA Vikram R. B.Com., FCA. 98841 91001 vikram@vcmv.in Transfer Pricing Introduction in India Finance Minister
More informationKey Amendments to Form 3CD [Effective from August 20, 2018] Nihar Jambusaria
Key Amendments to Form 3CD [Effective from August 20, 2018] Nihar Jambusaria Key Amendments to Form 3CD. The Central Board of Direct Taxes (CBDT) via Notification No. 33/2018 dated 20th July, 2018 has
More informationMajor direct tax proposals in Finance Bill, 2017
Major direct tax proposals in Finance Bill, 2017 Member firm Individual, HUF, BOI, AOP, AJP Tax Rates There is no change in the basic exemption limit for individuals/hufs. It is proposed to reduce the
More informationTransfer Pricing Scope and Jurisdiction. Presentation By. - S.P. Singh - Manoj Pardasani
Transfer Pricing Scope and Jurisdiction Presentation By - S.P. Singh - Manoj Pardasani For private circulation amongst participants in NIRC s Seminar on Transfer Pricing on 13 June 2015 at Delhi Contents
More informationFundamental principles of Transfer Pricing and Transfer Pricing audit under the Income-tax Act, 1961
Fundamental principles of Transfer Pricing and Transfer Pricing audit under the Income-tax Act, 1961 Borivali (Central) CPE Study Circle of WIRC of The Institute Of Chartered Accountants Of India Vispi
More informationTax Audit Few Problem Areas and Impact of Recent Amendments
1867 Tax Audit Few Problem Areas and Impact of Recent Amendments Tax audit season is round the corner now. So, it is important to clear few problem areas faced by tax auditors and the impact of recent
More informationCA SHARAD A SHAH. 21/06/2014 DTRC - Pune WIRC
CA SHARAD A SHAH 21/06/2014 DTRC - Pune WIRC-2014 1 Relevant Part of Section 271 (1) If the Assessing Officer] or the [Commissioner (Appeals)][or the Commissioner] in the course of any proceedings under
More informationChief Executive Officer under section 2(18) means an officer of a company, who has been designated as such by it.
RELATED PARTY TRANSACTIONS POLICY Preamble This policy shall become effective from 1st October, 2014. This policy is to regulate transactions between the Company and its related Parties, based on the laws
More informationCHANGES IN INCOME TAX BY UNION BUDGET 2017
CHANGES IN INCOME TAX BY UNION BUDGET 2017 CA SOHRABH JINDAL The Hon ble Finance Minister has announced the Union Budget 2017 on 1-2-2017. There are various changes in Law related to Income Tax. I have
More informationA BILL to give effect to the financial proposals of the Central Government for the financial year
FINANCE BILL, 2012* Bill No. 11 of 2012 A BILL to give effect to the financial proposals of the Central Government for the financial year 2012-2013. BE it enacted by Parliament in the Sixty-third Year
More informationTransfer Pricing for Specified Domestic Transactions An Insight
1756 Transfer Pricing for Specified Domestic Transactions An Insight Finance Act, 2012 has made sweeping changes to the tax landscape in India. One such change pertains to the application of transfer pricing
More informationBroad Overview of Transfer Pricing Provisions in India and Current Key Issues faced by Tax-payer
CA. Vispi T. Patel, CA. Rajiv Shah and CA.Kejal Visharia Broad Overview of Transfer Pricing Provisions in India and Current Key Issues faced by Tax-payer INTERNATIONAL PRICING PROVISIONS TRANSFER Introduction
More informationAppeal, Set comm., DRP Etc Mock Test IGP-CS CA Vivek Gaba
1. Taking full advantage of loopholes of law so as to attract least incidence of tax is known as a) Tax planning b) Tax evasion c) Tax avoidance d) Tax management 2. Which is the relevant Form No. for
More informationIncome of other persons included in Assessee s Total Income. (Clubbing of Income) (Section 60 to 65) Sec Particulars Sec Particulars
Income of other persons included in Assessee s Total Income (Clubbing of Income) (Section 60 to 65) Sec Particulars Sec Particulars 60 Transfer of income without transfer of assets 63 Definition of Transfer
More informationCBDT Instruction No. 3/2016 : A game-changer for TP audits? - Part I
CBDT Instruction No. 3/2016 : A game-changer for TP audits? - Part I Date: Fri, 04/22/2016-15:02 Ajay Kering (Direct or, Grant Thornt on India LLP) Dinesh Ramnani (Manager, Grant Thornt on India LLP) This
More informationLANCO INFRATECH LIMITED
LANCO INFRATECH LIMITED Page 1 of 13 Table of Contents Sl.No. Particulars Page Nos. 1.0 PREAMBLE 3 2.0 OBJECTIVE 3 3.0 DEFINITIONS 3 4.0 POLICY ON RELATED PARTY TRANSACTIONS 10 I APPROVING AUTHORITY 10
More informationMaulik Doshi Partner, Sudit K. Parekh & Co. March 2013
Maulik Doshi CITC Partner, Sudit K. Parekh & Co. March 2013 Legislative Framework Report in Form No 3CEB Audit Procedures Practical Issues MRL Legislative Framework Report in Form No 3CEB Audit Procedures
More informationRajeev Pai, Chief Financial Officer JSW Steel Limited
Rajeev Pai, Chief Financial Officer JSW Steel Limited Setting of Enterprise Resource Planning (ERP) based system and key challenges Accounting Standards and Regulatory compliance and Challenges thereof
More informationLandmark Decisions on Transfer Pricing
Landmark Decisions on Transfer Pricing CITC Amol Tibrewal Vispi T. Patel & Associates 11 April 2014 Global Vantedge - Delhi Tribunal (ITA No 2763 & 2764/DEL/2009) Facts of the case Assessee provided IteS
More informationSection 44AD of The Income Tax Act,1961
Section 44AD of The Income Tax Act,1961 Special provision for computing profits and gains of business on presumptive basis By: CA Sanjay Kumar Agarwal CA Sidharth Jain Assisted By : CA Neha khurana Applicability
More informationCase Study on Splitting up/ reconstruction of business of old unit
Case Studies Case Study on Splitting up/ reconstruction of business of old unit Case Study 1: XYZ India Ltd, is engaged in the business of developing softwares. The company already has an established software
More informationDOMESTIC TRANSFER PRICING CONFERENCE
DOMESTIC TRANSFER PRICING CONFERENCE Importance of FAR & Comparability; Selection of the Most Appropriate Method and Issues in disclosure in new Form 3CEB from SDT perspective 19 October 2013 Pramod Joshi
More informationTransfer Pricing Country Summary India
Page 1 of 13 Transfer Pricing Country Summary India April 2018 Page 2 of 13 Legislation Existence of Transfer Pricing Laws/Guidelines Section 92 of the Income-tax Act, 1961 requires international transactions
More informationMethods of determining ALP
3 rd Intensive Study Course on Transfer Pricing Methods of determining ALP CA Vishwanath Kane 16 February 2013 Agenda Introduction Transfer Pricing Methods Overview Applicability of Transfer Pricing Methods
More informationIntroduction to Transfer Pricing Regulations
Introduction to Transfer Pricing Regulations January 24, 2015 Vispi T. Patel Vispi T. Patel & Associates 1 Agenda Transfer Pricing Regulations in India Practical applicability of Transfer Pricing Regulations
More informationGUIDE TO TRANSFER PRICING BACKGROUNDER. (i)
GUIDE TO TRANSFER PRICING BACKGROUNDER (i) First Edition : November 2016 Price : Rs. 120/-- (Excluding postage) THE INSTITUTE OF COMPANY SECRETARIES OF INDIA All rights reserved. No part of this book may
More informationSubject: Revised and Updated Guidance for Implementation of Transfer Pricing Provisions-Regarding
Instruction No. 15/2015 F.No. 500/9/2015-APA-11 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Foreign Tax and Tax Research Division-I APA-II Section New Delhi,
More informationSUNGOLD CAPITAL LIMITED (CIN: L65910GJ1993PLC018956) Policy on Related Party Transactions
SUNGOLD CAPITAL LIMITED (CIN: L65910GJ1993PLC018956) Policy on Related Party Transactions OBJECTIVE: The Board of Directors (the Board ) of Sungold Capital Limited (the Company ), acting upon the recommendation
More informationPOLICY ON RELATED PARTY TRANSACTIONS
POLICY ON RELATED PARTY TRANSACTIONS 1. INTRODUCTION This policy on Related Party Transactions (hereinafter referred to as Policy ) of Mahanagar Gas Limited (hereinafter referred to as the Company ) and
More informationSecondary Adjustments What Lies beneath
Secondary Adjustments What Lies beneath UTPAL DOSHI June 2017 Contents -Transfer Pricing Adjustments - Secondary Adjustment - provisions - Global practice / OECD - Key issues - Illustrations - Way forward
More informationRecent Transfer Pricing ruling WIRC ICAI. June 26, 2013 Ameya Kunte
Recent Transfer Pricing ruling WIRC ICAI June 26, 2013 Ameya Kunte 1 Agenda Recent TP ruling Marketing intangible Intercompany lending benchmarking Location savings Share investment Turnover filter Sale
More informationTransfer Pricing Issues - IT/ITES Industry - Financial Services Industry. Darpan Mehta March 20, 2015
Transfer Pricing Issues - IT/ITES Industry - Financial Services Industry Darpan Mehta March 20, 2015 Agenda IT/ITES Industry 1 Financial Services Industry 2 Slide 2 IT/ITES Industry 1 Issues and challenges
More informationTransfer Pricing and Other Provisions to Check Avoidance of Tax
16 Transfer Pricing and Other Provisions to Check Avoidance of Tax Question 1 State the consequences that would follow if the Assessing Officer makes adjustment to arm s length price in international transactions
More informationVinodh & Muthu Chartered Accountants. Newsletter MAY 2016
Vinodh & Muthu Chartered Accountants Newsletter MAY 2016 2 Dear Readers, Welcome to our newsletter. VMCA brings you the significant developments in taxation during the month of May 2016. We hope this edition
More informationSURENDER KR. SINGHAL & CO
PROPOSED TAX RATES FOR FINANCIAL YEAR 2016-17 A. Y. 2017-18 Income Tax Rates for Individuals, HUF Individuals, Hindu Undivided Families (HUF) and Artificial Jurisdictional Person: Net Income Range Income
More information$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 9. + W.P.(C) 6422/2013 & CM No.14002/2013 (Stay) versus. With W.P.(C) 4558/2014.
$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI 9. + W.P.(C) 6422/2013 & CM No.14002/2013 (Stay) INDORAMA SYNTHETICS (INDIA) LTD.... Petitioner Through: Mr. Ajay Vohra, Senior Advocate with Ms. Kavita Jha
More informationthousand rupees of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income; and
ACT FINANCE ACT *Finance Act, 2011 [8 OF 2011] An Act to give effect to the financial proposals of the Central Government for the financial year 2011-2012. BE it enacted by Parliament in the Sixty-second
More informationAn overview of Transfer Pricing
An overview of Transfer Pricing Vispi T. Patel Vispi T. Patel & Associates March 14, 2015 1 Agenda Transfer Pricing Origin, Evolution and Basic Concepts TP Indian Perspective Indian Transfer Pricing Regulations
More informationTRANSFER PRICING DATED CA. Ashwani Rastogi, New Delhi
TRANSFER PRICING DATED 8.6.2017 1 India has signed the historic multilateral convention to implement tax treaty related measures to prevent Base Erosion and Profit Shifting (BEPS), at Paris with More than
More informationIncome from other sources.
Income from other sources. 56. (1) Income of every kind which is not to be excluded from the total income under this Act shall be chargeable to income-tax under the head Income from other sources, if it
More informationBENGAL & ASSAM COMPANY LIMITED Related Party Transaction Policy Adopted on 7 th August, 2014 (Amended upto 30 th May 2016)
BENGAL & ASSAM COMPANY LIMITED Related Party Transaction Policy Adopted on 7 th August, 2014 (Amended upto 30 th May 2016) 1 Preamble The Company is committed to upholding the highest ethical and legal
More informationKey Transfer Pricing Rulings
Key Transfer Pricing Rulings 8 Sept 2017 - Prasad Pardiwala Presenters : Rahul & Pranav Case Law - 1 Instrumenterium Special bench on Base Erosion Facts/ Issue: The taxpayer advanced an interest free loan
More information