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.
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.
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