TRANSFER PRICING
A more complicated problem of taxes by several countries has arisen as a result of business transactions of a multinational corporation dispersed across various tax jurisdictions. Every tax jurisdiction wants to pay a fair amount of taxes on profits from cross-border transactions involving two or more businesses that are part of the same group and fall under their purview. Most nations have implemented numerous laws that take into consideration the economic relationship with their jurisdiction in order to establish a comprehensive legal framework that can result in the calculation of reasonable, fair, and equitable earnings and taxes in their respective nations.
In 2001, India also passed a comprehensive Transfer Pricing Regulation, which raised awareness of the problem among the numerous multinational companies, both domestic and foreign, that operate in India and do cross-border business with their partners. By lowering revenue or inflating expenses in transactions between different firms that are part of a multinational company, the transfer pricing provisions are intended to prevent earnings that should have been earned in India from being transferred to other countries. The emergence of domestic transfer pricing restrictions has also raised concerns among domestic players as well as multinational firms.
What Assistance Can Popli & Associates Offer?
Since the Indian Income Tax Law’s Transfer Pricing Regulations were introduced, we have been actively helping both domestic and multinational corporations (MNCs) adhere to the provisions pertaining to transfer pricing that have an impact on their business operations. To reduce transfer price risk and match it with the clients’ cross-border company operations and goals, we help identify, plan, manage, and resolve complicated transfer pricing challenges. By providing the following services, MNRS keeps its clients informed about recent advancements in the Transfer Pricing Arena that have an impact on businesses:
- Strategic guidance on the best pricing strategy and how to document positions to meet legal obligations.
- Advice for handling foreign affairs, such as the Indian Taxation Rules.
- Supplying guidelines for the tax authorities’ compliance with regard to the transfer pricing technique that is based on the calculation of income from cross-border transactions.
- Creating a compensation plan in line with value chains.
- Certification and Audits of Transfer Pricing for Domestic and International Transactions.
