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Transfer Pricing

Transfer Pricing

We provide expert support in Transfer Pricing compliance, including documentation, benchmarking, and reporting as per regulatory requirements. Our team ensures accurate pricing of international transactions to minimize risks and avoid penalties.

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Frequently Asked Questions

What is Transfer Pricing under the Income Tax Act?
Transfer Pricing refers to the pricing of international or specified domestic transactions between related entities. As per the Income Tax Act, such transactions must be conducted at Arm’s Length Price (ALP) and supported with proper TP documentation.
Who is required to file a Transfer Pricing (TP) Report?
Any taxpayer who has entered into international transactions or specified domestic transactions with related parties must obtain a TP Report certified by a Chartered Accountant.
How can I reply to a Transfer Pricing Notice?
A TP Notice reply must include supporting documents, TP study report, comparables analysis, and justification of Arm’s Length Price. Proper drafting and timely submission are essential to avoid penalties.
What is DRP and when can objections be filed?
DRP (Dispute Resolution Panel) is a mechanism for resolving disputes in transfer pricing cases. Taxpayers can file objections before DRP against draft assessment orders within the prescribed time limit.
What are the penalties for non-compliance in Transfer Pricing?
Failure to maintain TP documentation, file TP report, or respond to TP notices may result in heavy penalties, additions to income, and prosecution under the Income Tax Act.