Govt eases tax norms to reduce transfer pricing disputes
The Dollar Business Bureau As part of its efforts to simplify the taxation norms, the government on Tuesday amended the Income-tax Act to reduce ambiguities in domestic and international transfer pricing cases. The changes are aimed at establishing a transparent transfer pricing policy and send a positive signal to investors. “The Income-tax Act provides for determination of income having regard to Arm’s Length Price (ALP) in case of international transactions and specified domestic transactions. The amended rules would therefore provide clarity in determination of price in transfer pricing cases and reduce disputes on transfer pricing issues,” the Ministry of Finance said in a statement. The amended rule will be applicable for computation of ALP on all international transactions and specified domestic transactions ...
Centre prepares draft to include range concept in transfer pricing
The Dollar Business Bureau In an effort to make international transactions more convenient, the finance ministry has proposed a new rule for determination of arm’s length prices of any goods or services exchanged between multi-national companies in India and their units abroad. The Income Tax department has already prepared a draft of the proposed rule which seeks to change the method used to calculate taxes on such transactions. The move came in the wake of a number of incidents of tax avoidance through manipulation of transfer pricing regime by companies having business in India and other countries. The Finance Ministry has sought comments and suggestions on the draft scheme of the proposed rules for computation of arm length price (ALP) ...
