In the wake of globalization, most MNC’s (Multi National Companies) today generate large portions of their taxable income, from other than their home jurisdictions. Thus, making transfer pricing an increasingly important issue among tax directors, boards of directors and fiscal authorities worldwide.
The explosive growth in world trade in recent years, and the resulting increase in cross – border transactions between related parties, has catapulted transfer pricing to the forefront of important international tax issues. MNC’s of all sizes are finding their transfer pricing practices under increased scrutiny by tax authorities.
There are extensive Transfer pricing regulations in place in India according to which an arm’s length standard is the frame of reference. Fiscal authorities are policing multinational’s transfer pricing policies aggressively in an attempt to protect their tax base from erosion.
We are S.R. Dinodia & Co. help the clients develop the appropriate transfer pricing strategy balances opportunity and risk management, weighing effective tax – rate optimizations against fiscal-authority challenges, judicial precedents and the costs of compliance. We help clients ensure that all compliances in India are met and issues under litigation handled effectively.