Transfer Pricing Services

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Over the last decade, with increasing number of countries embracing Transfer Pricing (“TP”) regulations including mandatory documentation, TP is becoming increasingly complex has evolved into one of the most challenging tasks faced by tax professionals. Any cross border transaction between two related parties around the globe is subject to transfer pricing provisions in India. 

With the ongoing enforcement of TP regulations in the country and adjustments being made focussing on new and more complicated issues have brought to the fore the reality that TP controversies are expensive and time-consuming to deal with and frequently result in double taxation of income and lead to considerable uncertainty. Further, with the advent of Base Erosion and Profit Shifting (“BEPS”), TP is expected to become a focus area for India and other jurisdictions as well.

With the onset of domestic transfer pricing, these issues are not limited to multinational enterprises alone, but impact businesses in the domestic space as well. The developments on the policy front, including the prescription of safe-harbor norms and the introduction of the Advance Pricing Regime have the potential to help businesses bring more certainty to their transfer pricing matters.

In respect to the Complex transfer pricing domain, JKA offers following services to hand-hold clients in demystifying complex TP regulations:

All Companies having related party transactions with their foreign subsidiaries / holding Companies are required to prepare TP documentations and obtain report from an accountant which are required to be filed with the Income Tax department. JKA help in strategising TP transactions and provide assistance in meeting documentation requirements.

      A. TP Planning: 

• Help multinational Corporations in developing efficient TP policies 
• Review of existing policies to reflect changes in legal positions 
• Assistance with respect to special transactions like CCA, Inter-Company financing, Royalty and intangibles, Management fee and intra-group transactions 

      B. Documentation & Compliance:

• Accountant report under section 92E
• Assisting clients in the preparation of TP study and documentations in a timely manner to avoid steep penalties under Indian TP laws
• Review of existing documentations
• Assistance in preparation and filing of Country by Country reporting and other compliances.

 We assist clients in filling application for pre-filing meeting with the competent authority, assistance in drafting the advance pricing agreement, filing the application for an advance pricing agreement with the competent authority and help in filing of annual compliance report on advance pricing agreement with the Government of India. JKA also hand-hold clients in roll-backing APAs and also in withdrawal of APA requests.

Providing assistance in TP audit support services and in proceedings before the CIT(A), Dispute Resolution Panel (DRP) and the ITAT in relation to TP matters. 

Our services and expertise span over all areas of transactions, specifically Inter-company financing (loan and guarantee pricing), Royalty and other payments for intangibles, Cost contribution arrangement (CCA), Management fee and other intra-group transactions.

The Finance Act, 2012 extended the application of existing TP regulations for international transactions to 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 200 million in a financial year. Our offering includes assisting clients in identifying specific related parties and consequent SDT emanating from them, conducting thorough functional & benchmarking analysis, developing efficient TP policy among others.