Details

Transfer pricing refers to the pricing of transactions between associated enterprises (domestic or international) that are under common control or ownership. These transactions must adhere to the “arm’s length principle” to ensure tax neutrality and fairness. R V K & Associates provides advisory, documentation, and compliance support under Indian transfer pricing laws, minimizing litigation risk and ensuring alignment with international standards.

Applicability of Transfer Pricing Provisions:

Transfer pricing regulations apply to the following types of transactions:

• International transactions with associated enterprises (AEs) outside India

• Specified domestic transactions, including those between related parties exceeding the prescribed monetary thresholds

Our Transfer Pricing Services Include:

1. Transfer Pricing Study & Documentation:

• Identification of associated enterprises and controlled transactions

• Functional, Asset, and Risk (FAR) analysis

• Selection of the most appropriate method (Comparable Uncontrolled Price, Cost Plus, Resale Price, TNMM, etc.)

• Benchmarking using external databases and comparables

• Preparation of transfer pricing documentation in accordance with Rule 10D of the Income Tax Rules

2. Transfer Pricing Audit and Compliance:

• Review of existing transfer pricing practices and policies

• Filing of Form 3CEB (transfer pricing report) as required under Section 92E of the Income Tax Act

• Assistance during transfer pricing assessments or audits by tax authorities

• Responses to notices and representation before tax officers

3. Advisory on Transaction Planning:

• Guidance on pricing strategies for inter-company transactions

• Risk mitigation through advance planning and documentation

• Transfer pricing impact on cross-border royalty, interest, management fees, and intra-group services

4. Support for Litigation and Dispute Resolution:

• Preparation of responses to Transfer Pricing Officer (TPO) queries

• Representation before tax authorities and appellate forums

• Advisory on Mutual Agreement Procedure (MAP) and Advance Pricing Agreements (APA)

Transfer Pricing Documentation Includes:

• Overview of the group and industry analysis

• Nature and terms of controlled transactions

• Economic analysis and selection of comparables

• Justification of arm’s length price

• Supporting documentation as required under the Income Tax Act

Regulatory Framework:

• Governed by Sections 92 to 92F of the Income Tax Act, 1961

• Detailed requirements under Income Tax Rules and CBDT guidelines

• Aligned with OECD Transfer Pricing Guidelines where applicable