TP Planning, Documentation and assistance with compliance

 

What is Transfer Pricing in India?

Transfer pricing is an accounting practice that represents the price that one division in the company charges from another division for goods and services provided.

Transfer pricing allows for the establishment of prices for the goods and services exchanged between a subsidiary, an affiliate or commonly controlled companies that are part of that same larger enterprise. Transfer pricing can lead to tax savings for corporations, though tax authorities may contest their claims.

Transfer Pricing entails developing TP strategies and providing assistance in meeting, documentation and compliance requirements by assisting in preparation of contemporaneous documentation in a timely manner, as required under the Indian TP regulations. In addition to it transfer pricing involves reviewing existing documents and global documentation from an Indian TP perspective. Further for compliance of TP we assist our clients in preparing guidelines, and procedures to keep their documents updated.

Detailed Description

With the changing time tax jurisdictions have also expanded their legislation, rulings and enforcement efforts. A Transfer pricing planning would be successful only if the TP strategy is global and is simple which is easy to adapt as your business develops.

TP Planning

Our experts professionals here at BIAT consultants assists companies in TP planning in following ways-

• Help multinationals develop and implement commercially feasible and fiscally efficient TP policies

• Assisting companies in modifying existing policies to reflect changes in the local law or business circumstances and assessing the potential impact of TP policies on their overall tax position

• Assisting multinationals translate their TP policies into transaction-level prices, reconcile TP and customs requirements and automate TP calculations

• Assisting companies in testing and reporting transfer prices, and developing processes and tools to monitor TP results.

Documentation and assistance in compliance

India’s TP regulation has prescribed mandatory documents for TP planning and also has imposed the penalty for its non-compliance. So if multinational companies are planning for TP planning in India then they need to comply with the documentation and compliance requirements and also to ensure that the system is in place for future compliance. Following are the ways in which our company BIAT consultant assists you-

• We assist you in preparation of the documents in a timely manner as required under TP regulations.

• We review your existing documents.

• For future compliance we assist you in preparing guidelines and procedures for keeping your documentation up to date.