Applicability of domestic transfer pricing ?
1. Here taxpayers just reduce their tax ;ability cannot apply transfer pricing to specific domestic transactions.
2. Monetary threshold limit of 20 crores is to be calculated on the basis of the aggregate of payments and receipts to which these provisions apply.
3. Definition of related parties includes expenses disallowed to cover the entities which have common beneficial ownership.
4. Transfer pricing is mostly applicable to international transactions and specified domestic transactions and specifically excludes advance pricing agreement provisions.
What are documents required for domestic transfer pricing ?
Company related Documentation
- Profile of the Company
-Profile of the group companies
-Profile of the unit claiming tax holiday.
-Profile of all the related parties.
-Terms of the transaction
-Functional analysis specifying functions, assets and risk.
-Economic analysis containing method, selection and comparable benchmarking.
-Budgets and comparable.
-Pricing related correspondence such as emails, letters etc.
Other supporting documents
-Official publication report by government, stock exchanges.
What are services provided by BIATConsultant ?
Our team of experts will help you to meet with the documentation and compliance requirements as follows-
1.Help to identify the specifically related party transactions and specified domestic transactions stemming between them which comes under domestic TP purview.
2.Help in conducting functional and benchmark analysis.
3.Assistance in developing commercially viable and fiscally efficient TP policies.
4.Assistance in documentation preparation on a timely basis as per the Indian TP Regulation.