Transfer pricing Study and Documentation

Transfer pricing is a term used to describe all aspects of inter-company pricing arrangements between related business entities, including transfers of intellectual property; transfers of tangible goods; services and loans and other financing transactions.

Inter-company transactions across borders are growing rapidly and are becoming much more complex. Compliance with the differing requirements of multiple overlapping tax jurisdictions is a complicated and time-consuming task.

Tax authorities are imposing new and stricter documentation requirements on companies in relation to their transfer pricing arrangements, and failure to comply can result in significant penalties. With the ever changing transfer pricing regulations, companies need an efficient framework for producing the required level of documentation to defend their transfer pricing data.

We reduce your exposure to the often-conflicting regimes that affect how much you should charge in cross-border, related-party sales of goods, services and intellectual property. We also help you document your related-party transactions in formats accordance with Indian laws and Rules. Such documentation includes background information on the commercial environment in which the transaction has been entered into, and information regarding the international transaction entered into, the analysis carried out to select the most appropriate method and to identify comparable transactions, and the actual working out of the arm’s length price of the transaction.