With an increasing number of countries embracing Transfer Pricing regulations, including mandatory documentation, Transfer Pricing is becoming increasingly complex.
We at Soatech has focused team on Transfer Pricing to:
- Developing Transfer Pricing Strategies
- Preparing Transfer Pricing documentation
- Reviewing the existing documentation
- All Transfer Pricing related complaints
The team is also expert in handling
Domestic Transfer Pricing:
The provision is introduced in Finance Act 2012 which became effective from FY 2012-13 on “Specified Domestic Transaction” which exceeds Rs.5 Crore.
Advance Pricing Agreement (APA):
It is a mutual agreement between a taxpayer and tax authority wherein it is beforehand decided about the quantum of specified expenditure payout. It is applicable to entities that have international transactions and the Indian company has the parent company outside India. This agreement generally covers 5 tax years. Therefore, it is a relief for an Indian entity by avoiding the costly litigation with the tax authorities on foreign payments issue like royalties etc.