The declining trend in the income tax department’s estimates of alleged income suppression by multinational companies would get buttressed, thanks to the new set of transfer pricing (TP) rules issued earlier this week.
Currently, transfer pricing adjustments become necessary when the transaction price with related parties abroad reported by a company varies from the arm’s length price or a benchmark industry standard beyond a specified limit (+/-3%). As per the new rule, however, if the price being audited falls between 35th and 65th percentile of the data set, it would be considered as arm’s length price and so no TP adjustments would be needed.
https://in.finance.yahoo.com/news/transfer-pricing-rules-less-taxing-232200596.html
Topic: New transfer pricing rules to be less taxing (Read 343 times)
Credit to: Tax Avoidance News : New transfer pricing rules to be less taxing
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The declining trend in the income tax department’s estimates of alleged income suppression by multinational companies would get buttressed, thanks to the new set of transfer pricing (TP) rules issued earlier this week.
Currently, transfer pricing adjustments become necessary when the transaction price with related parties abroad reported by a company varies from the arm’s length price or a benchmark industry standard beyond a specified limit (+/-3%). As per the new rule, however, if the price being audited falls between 35th and 65th percentile of the data set, it would be considered as arm’s length price and so no TP adjustments would be needed.
Currently, transfer pricing adjustments become necessary when the transaction price with related parties abroad reported by a company varies from the arm’s length price or a benchmark industry standard beyond a specified limit (+/-3%). As per the new rule, however, if the price being audited falls between 35th and 65th percentile of the data set, it would be considered as arm’s length price and so no TP adjustments would be needed.
This is just a good news.
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