Transfer Pricing & IPR Taxation
India is among many countries which have embraced Transfer Pricing (“TP”) regulations with prescribed mandatory documentation. TP is a complex tax. With, Base Erosion and Profit Shifting (“BEPS”) TP has become a focus area. Implementation of General Anti Avoidance Regulations (GAAR) and Place of Effective Management (POEM), have made it more complicated. If the TP approach is not correct , clients may face following issues
- Significant local tax reassessments with penalties and interest on assessed tax;
- leads to double taxation as income has already been taxed elsewhere and relief under tax treaties may not be available;
- expensive and time-consuming litigation with tax authorities.
- Benefits of Tax Holidays not available on TP additions
Our TP services Include
- At KSC, we develop TP strategies and provide assistance in TP documentation and compliance requirements in a timely manner. In addition, it involves reviewing existing documentation and global documentation from an Indian TP perspective.
- With updates on the latest tax legislation amendments, rulings, and enforcement efforts, we assist you in effectively and proactively framing TP strategy.
- Help clients develop and implement efficient TP policies
- Assisting clients in amending existing policies to incorporate changes and assessing the potential impact of TP policies on their overall tax position
Domestic Transfer Pricing
Transfer Pricing has been made applicable on certain domestic transactions defined as “Specified Domestic Transactions” (“SDT”) with effect from Financial Year 2012-13. These regulations become applicable where the aggregate amount of all such domestic transactions exceeds INR 20 Crore in a financial year.
Our Services Includes
- Assist with identifying specifically related parties and SDTs between them under the purview of domestic TP provisions
- Assist in conducting a benchmarking analysis in respect of the SDTs
- Assist in preparing documentation as required under the Indian TP regulations in respect of such SDTs.
International Services
We have tailored our International services in such a manner which takes care of the tax and regulatory framework that is ever-changing globally thereby adding complexities to otherwise already complex and uncertain tax environment. The major recent developments, below, require businesses to be extremely knowledgeable before planning International setup.
