Response to this Question

    India has transfer pricing (TP) regulations modeled on International standards. The guiding pole being 'arms length transactions'. The regulations stipulate that all 'related party transactions' should be based on 'arms length' ; thereby making it mandatory that due income should be offered for taxation in India. Foreign companies therefore need to consult subject area experts and carry out a detailed TP study and frame up a TP method and fix all commercial transactions based on this advise. It is important to note a company is obligated to file a separate TP Report with Revenue authorities in India and these companies would also be assessed by a designated TP Cell of The Indian revenue authorities.

Date : 29-Oct-2019 

Other questions in FOREIGN EXCHANGE (FEMA) category