Transfer Pricing Made Simple – Stay Compliant, Stay Confident!
Why to choose
What is Transfer Pricing?
Transfer pricing refers to the pricing of goods, services, and intellectual property exchanged between related entities within a multinational enterprise (MNE). It ensures transactions are conducted at arm’s length, mirroring prices between unrelated parties in the open market.
Designed to prevent tax avoidance by ensuring profits are appropriately allocated and taxed in each jurisdiction.
As businesses expand internationally, regulatory bodies like the OECD, Indian tax authorities, and others have tightened transfer pricing regulations to promote transparency and fairness in cross-border transactions.
Understanding regulations, maintaining detailed documentation, and managing audits can be daunting for businesses without expert guidance.
Why Transfer Pricing Compliance Matters
Avoid Penalties and Legal Risks: Non-compliance with transfer pricing laws can result in hefty penalties, interest charges, and reputational damage.
Audit Preparedness: Regulatory bodies, especially in India, are vigilant about cross-border transactions. Proper compliance ensures that you are always audit-ready.
Smooth International Operations: Proper pricing structures reduce disputes with tax authorities, enabling seamless operations across borders.
Trust with Stakeholders: Compliance reflects financial transparency, which builds trust with investors, partners, and customers.
Stay Ahead of Regulatory Changes: As laws evolve, consistent compliance ensures your business adapts without disruption.
What We Offer
Transfer Pricing Documentation: Prepare comprehensive documentation in compliance with local and international laws, including Master Files, Local Files, and Country-by-Country Reporting (CbCR).
Benchmarking and Comparability Analysis: Identify comparable transactions and entities to determine appropriate pricing, ensuring compliance with arm’s length standards.
Risk Assessment and Mitigation: Assess potential transfer pricing risks and provide strategies to minimize exposure during audits.
Representation During Tax Authority Audits: Act as your trusted advisor and representative during transfer pricing audits and disputes with authorities.
Advisory on Advanced Pricing Agreements (APAs): Assist in negotiating and implementing APAs to provide certainty on transfer pricing methods for future transactions.
Cross-Border Structuring: Design tax-efficient structures for intercompany transactions while ensuring compliance with transfer pricing laws.
Cross-Border Structuring: Design tax-efficient structures for intercompany transactions while ensuring compliance with transfer pricing laws.
Frequently asked questions
There are many questions in the mind when one is supposed to start a business, we’ve answered them all.
1) What is transfer pricing?
Transfer pricing governs the pricing of goods, services, and intangible assets exchanged between related entities in different countries, ensuring transactions are at arm’s length.
2) Who needs to comply with transfer pricing regulations?
Any business engaging in transactions with related parties, including multinational corporations and companies with subsidiaries or joint ventures in India or abroad.
3) What are the consequences of non-compliance?
Non-compliance can lead to severe penalties, increased tax liabilities, reputational harm, and difficulties in future audits or business operations.
4) What documentation is required for transfer pricing compliance?
Businesses typically need to maintain Master Files, Local Files, and Country-by-Country Reports as per Indian regulations and OECD guidelines.
5) How often do transfer pricing regulations change?
Laws evolve frequently as global tax authorities, including India’s CBDT (Central Board of Direct Taxes), implement stricter compliance measures.
6) Can small or mid-sized businesses be subject to transfer pricing audits?
Yes, any business engaging in intercompany transactions, regardless of size, is subject to transfer pricing regulations and potential audits.
7) How can I ensure my transfer pricing is audit-proof?
Partnering with experts who provide comprehensive documentation, accurate benchmarking, and real-time advisory can greatly minimize audit risks.